Plenty of Action at Top End

While a majority of property market segments around Australia have a tendency to be cyclical, the top end or premium sector, appears to be bulletproof and comes with its own behaviors according to this week’s RP Data Property Pulse report released today.

Prepared by national residential research director  Tim Lawless, he said that while a majority of the markets languished between 2004 and late 2006, the top end ignored any flattening or downturn in growth or activity that other markets experienced and continued to forge ahead delivering record capital growth to owners.

Right now, harbourside locations in Sydney are leading the charge where over the past year, around 340 house and unit sales averaging $4 million each occurred in the absolute top end, despite the fact that the broader market has only recently started to record any improvement.

Since early January, Sydney’s house prices increased by 8.1 per cent, with units increasing by 9.9 per cent.

Mr Lawless believes this result reflects the broad Sydney market, however it is still considered to be a diverse market where price increases differ dramatically between regions.  Confirming this is the dramatic rise of 18.2 per cent in the inner city region, while simultaneously, the market around Fairfield and Liverpool in the outer west of Sydney dropped by 5.4 per cent over the same period.

Queensland recorded the second highest number of premium transactions with a total of 86 houses and units sold, each with a price tag of at least $4million. Victoria followed recording 81 sales, while Western Australia recorded 61 sales.

Mr Lawless said that not only is the top end growing in size, the ongoing demand and short supply for premium properties is now the driver for creating significant capital gains in this elite segment.

“The homes that make it to the prestigious list are all about lifestyle where typically they are luxury homes located on the water, or on large tracts of inner city land with skyline or water views,” he said.

The northern beaches of Cairns and Port Douglas in north Queensland and the southern beachside township of Busselton in Western Australia are also good regional examples where buyers have parted with $4million or more.

Anecdotal comments by Mr Lawless indicate that fewer premium properties are hitting the market as owners position themselves for maximum growth.

“With demand apparently outstripping supply, and excluding any catastrophic downturns in the economy or share market, the top end is set for a long ride.

“For those that can afford to buy in, it appears that now is as good a time as any, as prices keep on going up,” Mr Lawless said.

Media Inquiries:  Contact Mitch Koper on 041 777 1778 or via email – mitch.koper@rpdata.com