Market confidence for higher priced properties is starting to rebound, according to RP Data’s latest property figures.
In the first part of 2009, most of the buyer activity was taking place in the lower and more affordable end of the property price spectrum, however, the tables are starting to turn as investors start to filter back into the market.
RP Data’s research analyst Cameron Kusher said in the first quarter of 2009, 58.7 per cent of all property sales were under $400,000.However, by the end of the third quarter this price range only accounted for 51.5 per cent of all sales.
“Similarly, during the first quarter of 2009 more than 60 per cent of all capital city unit sales occurred at prices below $400,000, but by the third quarter these price points accounted for slightly more than half of all sales,” Mr Kusher said.
“Sales of units priced at, or in excess of $1 million, held a greater market share than either of the price points between $800,000 and $1 million during all three quarters.”
According to Mr Kusher, this change in market activity can be attributed to the improvement in buyer confidence among investors and non-first home buyers.
“This is a trend that is likely to continue into 2010 where we expect fewer first home buyers and more investors/upgraders to be active in the market. The premium markets have already started to outpace the broader market in terms of price growth as demand for these properties improves,” he said.