According to Nerida Conisbee, Ray White chief economist, if you wanted to sell a luxury home, the last 12 months was certainly the time to do it.
Always wanted a luxury home? It seems the pandemic was an ideal time for many people to buy one. And although homes sold at very high price points were partly lifted by extreme price growth, we did see record numbers of houses sold over $10 million. An increase in luxury homes wasn’t just restricted to houses, with the number of apartments priced above $3 million also hitting record highs. If you wanted to sell a luxury home, the last 12 months was certainly the time to do it, with enough buyer demand to assure that homes have sold.
While the pandemic resulted in a rush of high end sales, it also resulted in an above average price lift. The price growth of the top one per cent of homes sold showed above average performance.
While high end sales didn’t do particularly well in 2018 and 2019, this completely turned around by 2020. Over the past 12 months, the median price of the top one per cent of properties sold has increased by 10 per cent, easily outperforming the rest of the market.
Where are the most luxury homes being sold? If by luxury, you mean the most expensive, it’s by far Sydney and more particularly in the North Shore suburb of Mosman. Every city, however, has different thresholds for how luxury can be defined. As a result, our list of most popular luxury suburbs also includes Toorak and Brighton in Melbourne, Dalkeith and Cottesloe in Perth, Torquay in regional Victoria and Hope Island on the Gold Coast.
The outlook for luxury property remains positive despite the general slowdown in the market currently occurring. The most popular luxury suburbs are short on land and as a result, it’s going to continue to be difficult to secure a home within them. And despite inflation woes, there are still a lot of people making a lot of money who will be looking to buy beautiful properties.
The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters.