AUSTRALIA’S most expensive homes are likely to rise in price by 10-15 per cent this year as wealthy locals and overseas buyers hunt for prestigious addresses in a resilient economy, according to researcher RP Data.
The rebounding share market and increased business confidence is underpinning demand for capital city waterfront and other top-end homes, while prestige holiday homes are yet to catch up, senior researcher Cameron Kusher told The Australian.
“You can’t underestimate how important the share market is for top-end buyers,” he said.
“When they lose half the value of their shares — as they did in 2008 — it’s no surprise the top end of the market is hit.”
On Tuesday, a 1950s beach-front house at Sydney’s affluent Whale Beach sold to a local buyer for $7.375 million just after auction. It is described in its brochure as “liveable”.
Agent Raine and Horne Palm Beach principal Glenn Lee, who sold the property, said the top end of Sydney’s northern beaches market — houses worth more than $5m — had begun to bounce back late last year.
“We sold $56m of property in the last six weeks (of last year),” Mr Lee said. He said prestige home prices in the area had fallen about 20 per cent during the global financial crisis, but had rebounded by about 10 per cent.