Some of Australia’s most envied homes are set to be sold at bumper prices over the Easter break as cashed-up investors shift their money from the uncertain share market into luxury property.
Sydney homes worth more than $5 million will increase in value by a solid 5 per cent from April through to September, beating the broader market for price growth, forecaster MacroPlan declares.
In the more affordable Melbourne luxury market, homes worth more than $3m will have a 3 per cent uplift, but growth in the resource-heavy economies of Perth and Brisbane will be flatter.
MacroPlan chief economist Jason Anderson said that while buying and selling numbers increased last year, price growth at the luxury end lagged the broader market. This part of the market struggled in the years following the global financial crisis and prices at the beginning of last year were about 10 per cent lower than 2008 levels.
“However, I think that the shackles might come off over the next few weeks,” Mr Anderson said. “There are signs that the sharemarket rally that we had is petering out and there is not as much momentum there and you might get a process where pretty wealthy people start cashing in; it could be a springboard for luxury sales.”
About the author:by