Luxury real estate market in Australia continues doing exceedingly well

1 min read

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As per several studies and reports, the luxury real estate market in Australia has surpassed the global average. This indicates at healthy demand for real estate in Australia and growing interest of overseas investors in the luxury realty segment. The luxury real estate market in Sydney witnessed growth of around 4% till September 2018 and Brisbane came in next with 3.5% growth observed in its luxury real estate market. They were followed by Melbourne with 2.8% of growth in luxury real estate markets. The interesting bit here is that Brisbane, Sydney and Melbourne have all posted luxury real estate growth figures which are higher than 2.7% price growth which is the global annual average for prime residential properties.

This has been achieved in spite of the mainstream Australian realty market witnessing cooling trends in recent times on account of stringent lending regulations. Several reports have tracked and analysed the top 5% of sales of properties across 43 global cities. Sydney has largely come in at 17th place followed by Brisbane at 20th and Melbourne at 21st place. Interestingly, Perth comes in at 24th place which indicates that global investors are steadily considering it as a major investment destination in the list of prime global cities. The APRA lending crackdown coupled with the royal commission into banking are factors that have brought about a slowing real estate market with finances being harder to avail for homebuyers and investors alike.

However, people are still buying luxury real estate without depending majorly on raising debt/finance. Perth is witnessing steady growth in prime real estate sales which have gone up by a whopping 48.2% this year till the month of June in the category of properties that are priced between $3-10 million. This indicates ample future growth potential throughout the west coast. Prime homes in Sydney have also seen de-growth in prices by 22.3% till June 2018 and this has only made luxury realty more attractive for investors. The story is the same in Melbourne where prices have come down by 3.2% throughout the year. Brisbane, however, has seen price growth of 2.2% till September 2018. Experts have stated that interest from global investors continues to be steady in Australian luxury real estate.

They have stated that with the stronger US dollar, there is more bang for the buck while investing in Australia at present and it continues to be a good place for global investors looking to snap up assets. There are several globally based Australians as well who are now purchasing property with US dollars. Demand continues to increase from ultra-wealthy and high net-worth individuals as far as luxury real estate in Australia is concerned. The prices of luxury properties increased by 2.7% globally till September 2018 this year. In Singapore, growth was the highest at 13.1% while Vancouver had prices coming down by 11.2%.

Resident Editor