Property Highlights: Australian Luxury Market Update
Last week, the Australian luxury property market saw 20 new high-end listings worth around A$160 million.
The biggest industry news of the week is the Reserve Bank of Australia announcing the increase in its cash rate target by 50 basis points to 0.85%. This is the largest one-month rate increase in more than two decades.
RBA Governor Philip Lowe said the bank expects inflation to continue to rise over the year before returning to the target range of 2-3% in 2024. While it’s not expected to have a major impact on high-end property buyers, it could slow down. decline in demand across the market.
Of the nine new luxury homes for sale in New South Wales, a contemporary beach house at 29 Suffolk Avenue in Collaroy is the real gem. The three-level residence is the perfect seaside sanctuary in a suburb that has seen an incredible five-year growth rate of 73%, with the median property price standing at A$3.6 million.
Maintained by Brendan Pomponio and Joshua Perry of Belle Property, this modern home is the ultimate entertainer’s dream with a flowing layout showcasing coastal and bush views over the headland of Long Reef.
In Victoria, five new listings are crowned by a spectacular Italianate Victorian mansion in Kew owned by Anabelle Feng and Ted Jao of RT Edgar.
The grand historic residence at 896 Glenferrie Road has a guide price of between A$9.5m and A$10.45m and is in the affluent suburb of Kew, where annual growth is 17%. Former home of eminent architect Alfred White, the 130-year-old residence combines period grandeur with modern luxury in 1,152 square meters of premium Kew real estate.
In Queensland, a stunning modern masterpiece sits in the exclusive estate of Sanctuary Cove, where the median property price is A$1.3 million. Managed by Matt Gates at Ray White Prestige Gold Coast, the sprawling luxury property at 1828 Pinehurst Drive boasts 24 meters of pristine golf course frontage, showcasing an upscale golf cart lifestyle.
Spread over more than 1,000 square meters, the contemporary retreat is close to the resort’s magnificent facilities, including Sanctuary Cove golf courses, the stunning marina, designer shops and cafes.
On the west coast, Michelle Kerr, founder of DUET Property Group, one of Western Australia’s best-selling agencies, says the recent spike in interest rates will start with a more psychological impact on property buyers from luxury in Perth.
Interest rate hikes have more of a psychological than a financial effect. We’re coming out of a decade, very low base, pretty cheap easy money… And then if we end up having three or four or five interest rate hikes then it’s going to start biting the pocket of the hip and will become more of a financial decision.
I think first and foremost, what you’re going to see is that this is going to force a lot of people to reassess how much money they can borrow… So what’s going to happen is that the people will now make purchasing decisions based on their hip pocket rather than where they would actually like to buy.
She also mentions that rising construction and renovation costs are driving up prices in the established residential market, saying the majority of buyers are Perth residents looking to upgrade.
If you can buy something that’s ready to go and you’re happy to pay a premium to do it, you’ll do it. So that really boosted the luxury end of the market in Perth.
At the start of the year, the largest buying pool was actually interstate and overseas. Now that the borders have reopened and people are getting back to normal life, we’ve actually seen a big drop in the number of interstate and overseas shoppers in Perth.
Two of Kerr’s most recent listings, a stunning 1940s house in Cottesloe and a charming character home in Nedlands, are both located in Perth property hotspots.
Both have been absolutely awash with interest as they kind of sit at the sweet spot of the price bell curve in the regions.
The First House in Cottesloe is a stunning 1940s period residence displaying beautiful Art Deco features, high ceilings and polished floorboards. The 774 square meters of premium land offers incredible potential for a thriving family, just meters from the beach and surrounded by the best amenities in this renowned suburb.
Michelle Kerr says the house is a rare opportunity to secure land in a highly sought-after location.
What we are selling here is the potential to create a family home. It is on a very large boulder which is highly sought after in a highly sought after pocket.
The person who is going to buy this is someone who wants to secure this very livable piece of land with the idea that maybe in three to five years they will add and create a more substantial home.
Kerr’s Nedlands listing is a beautiful character home filled with incredible 1930s period features such as coffered ceilings and gleaming floors blending with modern finishes.
Located at the exclusive address of the Nedlands Dress Circle, the house is a short walk from the river, acres of open space and the Nedlands Golf Course, with Kerr saying it is perfect for a family wanting add its own touch to a charming setting.
This is a lovely 1930s character house on the crest of the hill. A small pocket of land between Princess Road and Mel Vista.
This one is really going to appeal to character buffs who want to get in there and just add their finishing touches.