How was the Growth of Million Dollar Properties around Australia in 2017?

How was the Growth of Million Dollar Properties around Australia in 2017? Manish Khanna
Manish Khanna
Wednesday 14 Mar 2018

In Australia, luxury real estate market has been gaining a lot of popularity regardless of stagnating growth rate, vacillated economic conditions and other market variables. In fact, the evolution of luxury residential market has brought a significant change in the country’s entire economy. The constant increase in the sales of luxury homes has been hitting new records in Australia.

Potential buyers and investors who can afford prestigious housing are investing more in Australia real estate market. That is one of the key reasons why the demand for million dollar mansions in Australia have increased in the hotspots of Sydney, Hobart, Melbourne, Brisbane, Gold Coast and other major regions of Australia in the last few years.  

No doubt, Australian housing market has always been identified as one of the strongest markets across the world. The residential property prices in Australia’s eight highly-developed cities rose by 11.1 % in 2017. In fact, the rising demand for opulent properties in Sydney, Brisbane, Gold Coast and Melbourne is the primary reason for the Country’s higher economic growth.

Nowadays, business bigwigs and potential foreign buyers are more inclined towards investing their money in Australia’s most luxurious residential developments – thanks to the world-class architectural design, sky-high luxury towers, and high-end amenities.

These are some of the key factors that are influencing the buying patterns of million dollar properties in Australia. It is worth to research the entire real estate market trends as it can help you take the right decision at the right time.

Understanding Buying Patterns

When you thoroughly dive into the last year’s luxury properties buying patterns, you will see that investors and offshore property buyers were more interested towards sky high, low maintenance and top-notch architectural design homes instead of an affordable house. They were more into buying high-rise apartments or properties and continue to splash their money on Australia’s most expensive and prestigious residential developments.

In the last five years, the Australian luxurious real estate market has been a miracle for prestigious property investors, business tycoons and cashed-up foreign buyers. And undoubtedly, 2017 was one of the best years for purchasing million dollar mansions in the hotspots of Sydney, Hobart, Brisbane, Gold Coast, Melbourne, etc.

These are the top key regions where we have seen a glimpse of transitions (in a positive manner) in the residential real estate marketplace in 2017. And industry watchers predicted that there would be a fall of 5% to 10% in the prices of luxurious properties this 2018 as well.

According to Core Logic’s survey, the capital city values have declined by 0.1 % while the combined Australian regional markets have witnessed an increase of 0.2% in November 2017. However, the survey also revealed that there was a continue rise in dwelling values throughout the year.

On the basis of last year’s residential real estate market growth, we bring you the top cities and suburbs where the demand for luxurious properties has increased in 2017.  

RESIDENTIAL MARKET TRENDS IN SYDNEY, NSW

Needless to say that New South Wales has the largest state economy in the Country, accounting for around one-third of Australia’s economic share. In fact, Sydney has the most expensive residential developments in the country. Over the past ten years, the residential property prices have increased in Sydney.

Despite stable economic conditions and low-interest rate, the rate of growth in Sydney’s property market slowed last year.

In the first quarter of 2017, real estate prices in Sydney raised by 16.0% and 11.1 percent for luxurious properties and houses. Despite the inception of higher foreign ownership taxes in 2017, Sydney has seen some positive response from international buyers, especially Chinese investors.

The popularity of Country’s high-living standard and existing economic safety not only encouraged Chinese families to invest their money in Australia’s luxury real estate market but also motivated them to be a significant part of this society. In fact, these factors continue to drive offshore property buyers and investors in 2018.  

Residential Real Estate Growth Rate slowed in Sydney

With the introduction of lending policies and other regulations, Sydney’s capital growth has declined for the first time in a long time. According to the CoreLogic’s Survey for October 2017, Sydney was among those capital cities after Perth and Darwin that has recorded negative growth in an existing real estate market.

According to Tim Lawless, head of research at CoreLogic, “Lenders have tightened their servicing tests and reduced their appetite for riskier loans, including those on higher loan-to-valuation ratios or higher loan-to-income multiples.

He further added, Interest-only borrowers and investors are facing premiums on their mortgage rates, which are likely to act as a disincentive, especially for investors who are generally facing low rental yields on investment properties.”

In a nutshell, we can say that the decline in dwelling values in Sydney is one of the significant transformations in the current scenario of Australian real estate market.

Despite being one of the strongest property markets in Australia, the growth rate has slowed in the past few years in Sydney.

While the Sydney real estate market was facing a decline, regional suburbs of NSW have shown some positive signs in terms of growth. Prospective investors and luxury buyers are now more inclined towards suburbs like Lake Macquarie, the Southern Highlands, etc. where commuting is still accessible. In fact, prospective buyers and international investors are investing their money in buying luxurious properties in Sydney and other key suburbs of New South Wales.

Surrounding Suburbs to Watch in NSW for High-Standard Living

Darling Point

Darling Point, just 4 kilometres away from Sydney CBD is one of the most expensive suburbs in NSW with a median sold price of $5.7 million.

The suburb offers world’s best luxurious architectural designs with awe-inspiring harbour views and high-class infrastructure facilities to give you a sense of high-living standard.

The prestigious residential properties in this part of the suburb are a blend of mansions, villas, apartments and sky-rise buildings that are both classic and chic – reflecting the true essence of heritage and modernism

Fun fact: In Darling Point, 8.2 % of occupied private dwellings had 4 or more bedrooms house – this comes with luxurious living.  

Cremorne Point

Cremorne Point comes after Darling point when it comes to buying million dollar mansions in NSW, Australia. The on-going infrastructure developments and rising demand for sky-high residential properties are enough to drag a potential buyer towards this ravishing suburb.

Cremorne Point not only makes an attractive long-term investment opportunity but also encourages people to live high-standard life while boasting natural harbour views and world-class amenities.

Point Piper

Located in an eastern suburb of NSW, Point Piper offers you a range of high-class living opportunities while letting you enjoy breathtaking views.

The suburb connects you with other luxurious suburbs where you can find everything – from basic to advanced amenities. In fact, the infrastructure development in this particular region is the major reason for its capital growth.

PROPERTY MARKET TRENDS IN MELBOURNE, VICTORIA

Melbourne saw the biggest boost with the residential unit price index increasing by 16 % in the last couple of years. In the past ten months, the construction of residential properties in the Country rose both in value and in number, by 9.8 percent and 5.6% respectively. The demand for million dollar mansions in Melbourne has been increasing with each passing year.

However, the Melbourne real estate market continues to grow at an increasing rate across Australia; the property market has seen both ups and downs in the past few years. According to Core Logic 2017 Report, Dwellings value have increased by 57 per cent over the last 5 years, and value has raised by 1.9 percent over the past six months and are 11.0% higher over the last year.

However, the Domain House price Report for 2017 found that Melbourne residential properties process has created a new record of $ 773,669, after boasting a quarterly price growth of 3.1 percent and an annual increase of 9.1  %. Even, we have seen a sharp rise in the growth of luxury real estate market in 2017.

While some inner suburbs of Melbourne are showing steady growth, others are doing pretty well in the existing property market. Many inner south eastern suburbs of Melbourne have outperformed in terms of introduction of high-end property developments, infrastructure developments and economic developments.

Being a Victoria’s cultural, residential and business hubs of the state, Melbourne welcomes everyone who desires to buy residential real estate properties. There you can also find a great opportunity for long-term property investments options - thanks to its highly-developed and scalable real estate market structure.  

Melbourne’s Infrastructure at its best

One of the key reasons behind the sudden growth of luxury real estate market is its highly-advanced and well-connected infrastructure systems in terms of roads, bridges, commercial buildings, shopping malls, roads, and a lot more.

When someone invests their money in buying million dollar mansion, it is necessary to go through the luxurious aspects as it determines how classy and chic your living standard will be in that particular location. From schools to colleges, entertainment hubs to other high-end amenities, everything should be perfect when it comes to high-quality living standard. That’s where Melbourne comes into play.

The city has witnessed a ton of infrastructure developments in the last few years. In fact, this is one of the key aspects that kept Melbourne at the top of the list when it comes to promoting high-standard living.

In fact, the Victorian Government continues to spend a large proportion on Melbourne’s infrastructure sector to boost social, environment and economic outcomes. Plus, the city hosts a range of world-class educational institutes and universities.  

Melbourne’s Rising Economy

Being a cosmopolitan city, Melbourne boasts a diverse range of industries, ranging from entertainment to commerce, hospitality to corporate houses, food and café industry to tourism and a lot more.

According to ABS data, Victoria’s employment is increasing strongly with more than 95,000 new jobs until August 2017. And the best part is that the city has been in the phase of transition as it is creating more professional job opportunities and business opportunities – which is one of the key reasons why offshore property buyers showed interest in buying high-class residential properties in the beautiful city of Victoria.

At the same time, the Melbourne property market is offering a “wealth effect” for residents who are getting wealthier as the values of their houses and apartments keep rising.

In a nutshell, Melbourne is one of the fastest-growing cities in the Australia that is growing with a phase of around 2.4 % per annum. And we have seen significant growth in the Melbourne luxurious property market in 2017.  

Property Market Trends in Hobart, Tasmania  

Unsurprisingly, Hobart saw the positive growth with the established real estate price index increasing by 12.2% in the last year. Hobart, a capital city of Tasmania, is one of those spots where you can find the world’s most classic and ravishing luxurious homes, apartments and mansions.

As per ABS data, there were 68.6 % separate houses in Hobart while 10.8 % were semi-detached or terrace houses and 19.7 % were flat or apartments in 2016-2017.

In fact, 23.8 % of occupied private dwellings had 4 and more bedrooms unit. This shows that people are more into quality living and that’s the reason why there has been a slow and steady yet positive growth in the existing Hobart luxurious real estate market.   

Property Market Trends in Brisbane, QLD

Until December 2017, the capital growth of Brisbane’s property market had increased by 0.4% for houses. However, the apartment values fell by 4.5 % and still falling by 2.2 % to a median of $386,000.

According to the industry influencers, there is a prediction that Brisbane’s property market will experience a substantial boom and positive outcomes that have been posted in 2017. When it comes to the luxury property market, we can say there was a minor increase in demand for million dollar mansions and sky-high properties in Brisbane in 2017.

The prestigious residential properties developed in Brisbane and its surrounding suburbs are one of the main reasons for this capital growth. The excellent architectural interior design, state-of-the-art kitchens, lavish and modernistic bathrooms, beautifully-structured swimming pool and garden are the USPs of Brisbane luxury homes. If you want to buy luxury property in Brisbane, visit million dollar mansion website .

Property Market Trends in Gold Coast

Gold Coast is still one of the hottest spots for the luxury residential real estate market in Australia. In previous year, there was a boost in capital growth by 6.4 % for residential real estate and also increased by 0.7% over the last few months to a median value of $619,000.

When the city is all set to host the Commonwealth Games in 2018, you can witness a lot of improvement in the infrastructure, commercial, economic and residential sectors. And that’s what it is experiencing right now. There has been a great boost in the demand for million dollar mansions in Gold Coast and surrounding suburbs of QLD.

According to CoreLogic estate statistics, the value of new prestigious properties on the Gold Coast has soared in the last couple of years, and it is expected that all the attention will be shifted from Sydney’s luxury property market to the Gold Coast and Brisbane’s skyscraper developments – thanks to the Commonwealth games 2018 and recent infrastructure development projects.

Residential Real Estate Market declined in Darwin & Perth

While Sydney, Melbourne, Hobart, Brisbane and Gold Coast have increased the rate of growth in 2017, we have seen a negative impact on Darwin and Perth’s residential real estate market.

Over the year ending of 2017, capital growth of Perth’s property market was decreased by 2.5 % for houses, including luxury properties in Perth. During last year, apartment values have fallen by 1.7 % but rose by 1.0 % in the last four months to a median of $369,500.

On the other side, capital growth of Darwin’s property market was declined by 7.4% for dwellings while apartment values decreased by 14.0% in 2017. In fact, the high-class residential building approvals in 2017 were calculated around 432 for houses (declined by 34.8% as compared to prior year) and 96 for apartments (decreased by 73.5%) in Greater Darwin.  

Conclusion

In a nutshell, during the first six to seven months of 2017, construction and development of high-class residential properties in the country have increased in some of the major regions such as Sydney, Melbourne, and Hobart in terms of number as well as value.

However, the demand is mixed. In the year of 2017, purchases of luxury properties increased because of foreign investors and offshore buyers. And it is forecasted that Sydney and Melbourne will continue to grow in terms of freedom, space and high-standard lifestyle – which will automatically boost the capital growth of Australia’s luxury residential real estate market in 2018.