Upper end property on the move
A combination of improving company profits, stronger equity markets and larger dividend payouts has helped boost the wealth of high net worth individuals. This has in turn seen demand for luxury property markets grow across the country.
Recent strong property price growth and record low interest rates have also assisted existing owners to more easily upgrade to a higher priced property. Furthermore, growing demand from offshore buyers and a more optimistic outlook for global economic growth has also assisted the top end of property markets.
Price growth & finance costs drive upgrader activity
Double digit price growth, across a number of property markets, over the past 12 months has seen home owners sell up to lock in their capital gain. This has in turn allowed these “cashed up” buyers to upgrade to a higher priced property.
Prices at the top keep growing
The most recent data from Australian Property Monitors (APM) shows the strong performance of the top 20% of the market over this period:
- The median house price of the top 20% of sales nationally has grown by 84% since 2004 and 9.2% in the last year alone.
- Luxury apartments and townhouses have also been popular with the median price of the top 20% of units growing by 58% over the past 10 years and 6% in the past year.
- The number of sales that transacted within the top 20% price bracket has also increased in line with demand over the past 12 months. This saw the number of houses sold in the top price bracket increase by 12% over the 12 months to June 2014 while unit sales increased by 18% over the same period.