Golden Opportunity for Luxury Buyers as Sydney’s Property Market Slides

Golden Opportunity for Luxury Buyers as Sydney’s Property Market Slides Manish Khanna
Manish Khanna
Friday 20 Apr 2018

When it comes to the top fastest growing luxury property markets in the world, Sydney is the first name that strikes to the mind. For the last five years, Sydney property market has been influencing luxury buyers to invest their money in high-rise properties, including apartments, mansions and villas.

Despite the diminishing rate of price growth across Sydney, the city‘s luxury property market managed to record double-digit growth in 2017. According to the CoreLogic report, the value of properties in Sydney has climbed 74% from 2012 to 2017. In fact, the profits at the top end of the market were higher.

While 2017 was a pretty steady year, the scenario in 2018 has completely changed. Now, the values are shifting down due to some strict lending regulations made by Australian Prudential Regulation Authority. The strict credit policies and mortgage lending regulations introduced by banks could become the prime reason for a market crash. Most of the property market watchers are expecting a further decline, from 5 to 10 % in the property values this year.

It means this is the best time to buy a luxury property in the hotspots of Sydney at the best possible price. Since the market is not at its peak, you can try your luck and purchase your choice of opulent residential development that can define your living standard – but don’t expect any bargains.

If you are looking for an impeccably luxurious, beautiful and prestigious property in the top location of Sydney, then visit Million Dollar Mansion website. There you will get a list of hottest luxury properties  in the Australia-wide.  

Why is Sydney best for Luxury Real Estate Investment?

Despite the recent fall in property prices, Sydney remains the most expensive city to invest in Australia. Prospective buyers and investors are reaping benefits from this situation and buying luxury properties in the hottest suburbs of Sydney, including Point Piper, Darling Point, Cremorne Point, Bellevue Hill, etc.

Though there is not a huge difference, still potential buyers get relief due to a dip in property values.  However, you can’t decline the fact that potential investors are looking for such opportunities and that’s the reason why demand for million dollar mansions has increased in Sydney this year.

With the strong demand and reduced prices, there is still an expectation that people will pay a good amount of money for high-quality real-estate developments, especially in eastern suburbs of Sydney, NSW.

However, you could witness a few changes in terms of higher interest rates or a downturn in equity markets in the current Sydney real estate industry. If you consider these two aspects, you will find that luxury real estate investment in eastern suburbs would be amazing.  

Key Reasons behind the decline in Sydney’s Property Market

According to CoreLogic, property prices in Sydney have broadly declined by 3.1 percent and are now 2.2 % below the real estate market’s peak in August 2017. The median house price in Sydney is now approx $ 1,058,000, while the median apartment value is recorded at $ 774,100.

CoreLogic head of research, Mr Tim Lawless said: “Sydney's housing market has become the most significant drag on the headline growth figures,". He further added, “We're likely to see lower to negative growth rates across previously strong markets, more cautious buyers, and ongoing regulator vigilance of credit standards and investor activity,".

It is expected to see further decline around the top end of the market in Sydney. And the downturn is more likely to look at the values of detached houses. When we break the types of residential real estate price data, we can clearly see that the prices of apartments are more stable than the detached houses.

Due to the strict credit policies introduced by the Australian Prudential Regulation Authority, Australian banks have to get stricter with their mortgage lending policies.  This means housing investors would find more difficulties in getting loans against their mortgages. Since housing investors have played a powerful role in Sydney’s property market, there could be a huge downturn in property values this year.

In fact, Sydney’s top-end market was the most affected areas. And the luxury property values in some suburbs like Vaucluse had decreased by up to 20 %.

Still on with Golden Opportunities

However, this diminishing phase is encouraging potential luxury property buyers to purchase million dollar mansions at the best deal. Both the buyers and sellers are willing to accept lower values of luxury properties in Sydney. The only problem could occur in the current market when they get into the process of borrowing funds. This can be stressful and annoying!

But still, you can make a decision and arrange funds because this period is the best for buying luxury property in Sydney. So, step out from your comfort zone and find out the suburbs available in Sydney, NSW.  

What suburbs are perfect to invest in luxury Properties?


 Once you are aware of current real estate market trends, it would become super-easy to make the right decision at the right time. If you are wondering where to invest money in luxury property, then we bring you the list of some of the hottest suburbs where you can find the right value of prestigious real estate in Sydney.

  1.    Point Piper

Point Piper is the hottest option for those looking for expensive residential properties for the luxurious living standard. It is a small, beautiful and affluent eastern suburb of Sydney, NSW that open the doors for potential luxury property buyers.

The suburb offers you top-notch infrastructure facilities, transportation aid and other high-class amenities to keep your living standard up forever. You can invest in Point Piper during the declined phase of Sydney’s real estate market.  

  1.     Darling Point

Darling Point is another harbourside eastern suburb of Sydney, offering world-class luxurious real estate developments with visually-appealing interiors and architectural designs. It is just 4 kilometres east of the Sydney CBD and is a vital part of Wollahra Council’s local government area.

This suburb has everything that can preserve your class and standard at its best. This could be your chance to buy a beautiful and spacious million dollar mansions in the prime location of Darling Point.   

  1.      Cremorne Point

This is a very prestigious harbourside suburb, nestled on the lower North Shore of Sydney, NSW, Australia. It is a ravishing location that has preserved the nature, high-end amenities and infrastructure developments. There you can discover the best high-rise properties at the best price as the Sydney property market declines.

These  suburb offers you a variety of options, ranging from high-rise apartments to luxurious cottages, million dollar mansions to villas.

  1.     Vaucluse

This eastern suburb of Sydney has the most captivating prestigious residential developments that are now hitting a bit because of a market crash. The prices have reduced a bit and you will be getting a golden opportunity to buy luxury property at the best lowest price. This is something unbelievable!

  1.     Bellevue Hill

Bellevue Hill is also a fantastic option for luxury property investment. It is an eastern suburb, located 5 kilometres east of the Sydney CBD. If you really want to revamp your standard of living, then this is the perfect place for you.

Since the property prices have declined a bit, you can take the right decision after evaluating your budget needs.

All the five suburbs of Sydney mentioned-above are perfect for luxury property investment activities – thanks to the reduced property prices and stable economic growth. You can also leverage this phase by investing your capital in the best luxury property market in Sydney.

Conclusion

Despite the weak performance, strict credit regulations and expensive deals, demand for prestige property is expected to ease down in 2018. This means here could be your chance to own a high-rise apartment or villa in Australia’s most developed and highly-reliable city.