PHOTO: Luxury property markets are experiencing significant price growth in a supply-limited market.
The property market is experiencing divergent trends based on the buyer segment. While the masses are being affected by rising interest rates, the elite are driving up prices in the luxury prime and super prime property market.
https://propertynoise.co.nz/au/sydney-real-estate-agents-spiral/
Australia’s stunning coastline is home to some of the world’s most prestigious waterfront properties, and these properties remain unaffected by interest rates, leading to a boom in real estate prices.
The combination of an increasing wealthy population within the country and the return of cashed-up foreign investors is creating low supply and pushing prices higher in the ultra-luxury property market.
Sydney, in particular, has gained membership to an exclusive club of 12 super-prime property markets. According to the Knight-Frank Global Super-Prime Intelligence report, Sydney has surpassed cities like Geneva, Orange County, and Paris in terms of sales above A$14.5 million.
Although Perth and the Gold Coast may not rank alongside global leaders like Dubai, Hong Kong, New York, and Los Angeles, they are also witnessing positive effects, with super-prime property prices increasing by 11% in Q1 2023 globally.
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In Sydney, international buyers are playing a significant role in driving super-prime sales. While the return of international buyers has been slower compared to the US, Singapore, and the UK, there has been a recent intensification in international buyer inquiries, which is expected to further increase in the spring and summer months.
Australia’s limited supply, coupled with strong demand from high-net-worth individuals seeking stability amid inflation and stock market volatility, has created a surge in interest from international buyers. The lifting of pandemic restrictions in Asia-Pacific countries, including Hong Kong, Singapore, Thailand, and China, has further fueled this interest.
In terms of rental properties, Sydney has seen a significant rise in luxury residential rents, with a growth of 11.7% over the past 12 months. Factors contributing to this growth include returning expats, corporate rentals for new talent hires, and construction delays, which force tenants to rent for longer periods.
The Gold Coast is also experiencing high demand for luxury properties, particularly waterfront apartments and land. However, there is a scarcity of such properties due to challenges in getting contractors to quote and build. The region is attracting people from cities like Sydney and Melbourne, as well as high-net-worth families looking to downsize.
Perth’s luxury property market is seeing price growth, especially for houses, particularly those located on the waterfront. The market remains tight due to limited supply, and buyers consist of a mix of local, interstate, and international individuals. Sellers are hesitant to sell due to the lack of available alternative properties.
Despite global economic challenges, super-prime and prestige residential properties continue to attract wealthy buyers. Limited stock availability has slowed down transactions in recent months. Cash buyers in the super-prime segment are less affected by factors like inflation and interest rates. While subdued conditions are expected in 2023 compared to the peak of 2021, a recovery in the global economy later this year is likely to drive transactions in 2024, with sales exceeding $30 billion.
SOURCE: API MAGAZINE
https://propertynoise.co.nz/au/sydney-house-prices-drop-at-the-fastest-rate-on-record-watch/