Strong Demand in Australia’s Prestige Residential Market
Perth building news. Australia’s high-end property market is experiencing a surge in demand, particularly for homes valued up to $20 million. According to recent research, local buyers and those looking to upgrade are the most active participants in this growing market, with significant interest in acquiring luxury residences in premium areas.
Perth Building News: Record Sales and Real Estate Developments
Sean Hughes, director of Haiven Property, highlighted that his team is seeing unprecedented demand and record-breaking prices for luxury properties, particularly along Perth’s northern coastal stretch. “The prestige residential sector in Perth is currently red-hot and we expect this trend to continue for the foreseeable future,” Hughes said. He pointed out that this market segment is still somewhat undervalued, creating significant opportunities for buyers.
The most sought-after areas, such as Trigg, City Beach, Sorrento, and Iluka, are attracting a broad range of buyers. Hughes noted that both local residents eager to upgrade or downsize and expats returning home are keen on securing high-end properties in these prestigious coastal suburbs.
Scarcity of Land Driving Demand for Existing Homes
One of the factors pushing demand to new heights is the limited availability of land in these prime suburbs. Even if land is available, the cost and time required to build new luxury homes serve as major deterrents. As a result, existing homes in these areas are highly coveted. “In these premium suburbs, land is rare, and the time and cost associated with new construction make existing homes even more desirable,” Hughes explained.
National Trends in the Prestige Property Market
CBRE’s Prestige Residential Valuer Insights for Q3 2024 confirmed these local trends, revealing that 40% of valuers across Australia report strong to very strong demand for high-end properties. South Australia and Western Australia, in particular, are seeing the highest levels of demand for multimillion-dollar homes.
The research also anticipates continued price growth in Western Australia’s luxury real estate market over the next 12 months, driven by a mix of local and international interest in securing prime properties in sought-after locations.
Perth Building News: Future Outlook for WA’s Luxury Property Market
As market dynamics continue to shift, Western Australia’s luxury real estate sector is expected to remain strong, with demand outstripping supply. The combination of limited land availability, high building costs, and strong interest from both local and international buyers is set to fuel further growth, particularly for properties priced up to $20 million.
High-End Real Estate Investment Trends in October 2024
In 2017-2018, while Perth’s broader property market was struggling to gain momentum, it was the luxury sector that took decisive steps, driving market movement. Buyers in the top tier of the market made bold investments that set the tone for the rest of the industry, demonstrating the resilience and demand for high-end homes, even in sluggish times.
Luxury Market Leads Again in Late 2024
Fast forward to late 2024, and the trend continues. The luxury residential sector in Perth is once again leading the charge, with high-end buyers making strategic investment decisions. With the potential for lower interest rates on the horizon in 2025, competition in the market is expected to intensify, further fueling activity in the top segment. Affluent buyers are acting pre-emptively, recognising that prime properties in Perth’s most prestigious locations are both valuable and scarce.
Record-Breaking Off-Market Sales Highlight Demand
One key indicator of the strength of the luxury market is the recent off-market sale of a property in Seaward Loop, Sorrento. The home was sold for an impressive $6.1 million. This marked the highest sale price north of Scarborough in nearly a decade. The off-market transaction underscores the intense demand for premium properties in Perth. Buyers are willing to pay top dollar for the right location and home, even in private sales that rarely make headlines.
The Future of Perth’s High-End Property Sector – Perth Building News
As 2024 comes to a close, the prestige market in Perth is poised for continued growth. With lower interest rates anticipated and a scarcity of luxury homes in desirable coastal areas, buyers are positioning themselves for further opportunities. The demand for exclusive, high-value properties shows no signs of slowing down, ensuring that Perth’s luxury real estate market will remain a key driver of the city’s overall property sector in the years to come.
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