The resilience displayed by the Australian luxury property market has taken everyone by surprise. Although the COVID-19 pandemic ensured that 2020was the worst year for the economy, the growing prices of trophy homes presented another picture. The highlight of the past year has been luxury property for sale in Australia, which has continued to give a boost to the $7.2 trillion residential property market. The all-time low-interest rate and the confidence of the buyers have catapulted the demand in the segment and resulted in an increased sales turnover value.
If you have been planning to invest in the sector, then this is the best time as the mortgage rates will remain low and you can take advantage of the grants for owner-occupier purchases. After the initial shock in the beginning of 2020, the market has been improving and will stay stable in the New Year. So here is the list of the nine best places to live and own luxury property in Australia.
As expected, the most sought-after city in the country enjoys the top spot when it comes to owning a high-end home. The most populated and popular capital city is the financial and economic hub of the country and is home to some of the biggest business houses. The annual price of premium property segment in Sydney jumped by 2.3% during the September quarter of 2020. Darling Point displayed the highest median value of $7.06 million while Bellevue Hill was not far behind at $5.72 million and Vaucluse at $5.39 million.
The high growth in luxury property prices indicates that the high-net-worth individuals are tempted to purchase the opulent homes to diversify their investment portfolios. The leap has also been buoyed by expats who are coming back to the safe haven of Sydney, which was less affected by the pandemic in comparison to the US and UK.
2. Gold Coast
While the global markets are experiencing a slump in the luxury property segment, Australian cities are surging ahead. It may come as a surprise to many, but Gold Coast has one of the fastest-growing luxury real estates in the world. Beachfront homes are the dream of every wealthy family and the city is offering ample opportunities to find the perfect resting place to them.
Interstate buyers from Sydney and Melbourne have been making a beeline for these beautiful and ostentatious properties overlooking the serene waters. The demand from interstate migrants and people who want to downsize have helped in promoting the growth of prestige homes in Gold Coast.
The limited supply of luxury homes and the intensively growing demand for such properties has enhanced the prices in the segment. According to the Real Estate Institute of Western Australia, the property market in Perth will continue to soar in 2021 and offer the best homes for sale. There has been a considerable increase in population in the city due to the growth of migrants from overseas settling in the region. With more international arrivals and domestic migration, the demand is only going to go up. Thus, it is the best time to find a luxury house in the vicinity and enjoy a great return on investment through a high rental yield.
Although Melbourne is ranked highly among the investors for its advanced economy, happening nightlife, brilliant food scene and wealthy population, its property market took a tumble in 2020. However, the market recovered starting November last year and has been showing signs of improvement ever since. The demand for lifestyle regions among the super-rich has helped the Melbourne market to recover. One of the most expensive suburbs in the country in 2020 was still in Victoria, with Toorak touching the median value of $4 million. The upswing is expected to continue in the coming months as well.
The low number of COVID-19 cases and the better value for money from premium properties is making Brisbane go up the charts in the rising property values. The buyers have also shown a greater interest in the affluent regions as they have been able to make higher savings during the pandemic period because of lack of international travel and reduced spending on luxury items. Also, several owner-occupiers are looking to either downsize or upsize and plan to make the stunning locale their home.
Institutional investors and expats are propelling the growth of premium house prices in the city of Adelaide. Its captivating beachfront homes and stylish mansions have been selling for millions with cashed-up buyers pursuing the luxury real estate.
The prestige property market in Adelaide showcased a brilliant run with a single Henley Beach house fetching $5.68 million in 2020. Another resplendent abode positioned in Medindie was sold for $4,710,888 in the region, which depicts the growing demand for trophy homes in and around Adelaide.
The capital city experienced a rise of 7.5% in house prices in 2020, and a major part of the demand was concentrated in houses in the countryside rather than units. The reason behind this change is the need for more space in the pandemic ridden world and the desire to move away from the noise and gridlock of the city.
Canberra has now become the second most expensive property market in the country and the demand for home loans has been growing. Naturally, the ultra-rich and the investors are planning to make the most of this trend which will continue in 2021.
The city experienced a rise of 9% in property prices in 2020. Newcastle has been grabbing a lot of attention from homebuyers for a variety of reasons. Its cruise industry is coming up in a big way, and there has been billion-dollar investments in the development of the Port of Newcastle. Besides these, the CBD has undergone rejuvenation with construction taking place in its prominent precincts. With the fast pace of infrastructure development, it has become a hotspot for luxury home seekers.
9. Sunshine Coast
A vast majority of the affluent buyers plans to invest ina holiday home in Sunshine Coast as it offers splendid views of the turquoise waters. The luxury beachfront homes in the region come loaded with a variety of amenities, including swimming pools, proximity to the beach, high ceilings, modern architecture, high-end appliances and much more. Thus, the sunny city is on the wish-list of many buyers.
If you have been looking for the best place to purchase luxury real estate in Australia, then make sure you choose one from the list mentioned above. These are the most liveable and charming regions in the country that have a wide range of premium properties.