Ultimate High THE RETURN OF WEALTHY EXPATS AND PENT-UP DEMAND HAS FUELLED RECORD-BREAKING PRESTIGE SALES, MAKING FOR A YEAR UNLIKE ANY OTHER.
EVEN WITH DELTA lockdowns affecting sales in Melbourne and Sydney, the prestige property market has continued to smash records in 2021. Not only have we seen a large volume of transactions, vendors and agents are securing prices beyond anyone’s expectations. This has helped drive price growth in the broader residential market. While luxury properties typically take longer than others to find a buyer, and are limited to a specific group, the lack of supply and return of expats, along with record low borrowing costs, have added momentum to the market. And with border closures putting a hold on overseas holidays, many buyers directed funds that would otherwise be spent on travel towards the purchase of a new home. In the months ahead, we can expect to see a return of foreign purchasers as international travel increases. This should further boost sales in the prestige sector, particularly in the short- to medium-term. What follows is a closer look at the prestige markets in the eastern states...
Melbourne
The city continues to experience some of the strongest demand on record for luxury homes. In 2021, we’ve seen numerous sales over 16
THE LUXURY REPORT | SUMMER 2021/22
In Toorak alone, there have been 35 sales over $10 million.
$10 million within the Stonnington local government area. In Toorak alone, there has been at least 35 sales in excess of $10 million in the 12 months to October 2021, with about 14 of these reported to be above $20 million. In October, a home at 47 Lansell Road, Toorak, sold for a reported $43.1 million, making it the most expensive property sold at auction in Australia and the second-most expensive property ever sold in Victoria. Surrounding suburbs, such as Armadale, South Yarra, Hawthorn and Malvern, have reported strong results since the resumption of the market in mid-September. The lifting of Covid-19 restrictions has led to an increase in listings of trophy homes, particularly around Kew and Hawthorn, as vendors hope to engage pent-up demand, which continues to outstrip opportunities. Records are not limited to Stonnington, with renewed interest also evident in Brighton and the Mornington Peninsula. In July, Brighton achieved a new record, with a house on Kent Avenue understood to have sold for about $25 million. One month earlier, a beachfront allotment in Seacombe Grove, Brighton, sold for $20 million, a record price for a vacant block in that most desirable suburb.
ILLUSTRATION: COL MCELWAINE
BY MARK BROWNING, HEAD OF PROPERTY SERVICES GROUP, NAB
