The Real Estate Institute of NSW president Malcolm Gunning said the prestige sector was “back in business”.
“After seven years of caution the Sydney prestige market is showing solid signs of growth as confidence returns to the marketplace following the GFC,” he said.
“Business conditions play a key role in this market and we are seeing prices return to where they were previously due to the outlook appearing solid in the future.”
According to BradfieldCleary director Bob Guth, sales volumes are rising in this sector of the market.
“Our sale of properties over $3 million has more than doubled in the last 12 months and I would expect similar activity in other prestige markets,” he said.
“In fact, interest in all prestige homes has returned regardless of location, and they are now performing better than before the GFC period.”
However, principal of Richardson & Wrench Mosman Stephen Patrick predicted growth would be slow and steady.
“The business community is still cautious and it is going to take time for it to grow steadily, as it should,” he said.
“Those seeking properties over $5 million are cautious, they still want more value and they aren’t chasing it like they used to.”