Following in the footsteps of the lower and middle markets, which saw rapid price growth over the past 12 months, Sydney’s luxury market is beginning to take off too.
According to figures released by Australian Property Monitors (APM), over the March quarter the prestige market grew by eight per cent, compared to the western suburbs that grew by just 3.9 per cent.
According to senior economist at Australian Property Monitors Dr Andrew Wilson, this spells good news for investors.
“Current prestige markets are definitely not as advanced in the price cycle as previous highs in 2009 and 2010; there is still some way for that market to reach the top,” Dr Wilson said at the second annual LJ Hooker Mosman Investment Seminar.
“There is no stopping the prestige property market at the moment, there is still a lot of positive energy buzzing around, with reports of the highest price growth since 2003,” he said.
“We will see a lot more activity in the colder months than we are used to in the prestige market. The upper market is giving the middle markets a run for their money in terms of growth.”
Bernard Ryan, director at LJ Hooker Mosman, agreed with Dr Wilson’s sentiment.
“Investors and upgraders have been honing in on the lower north shore since interest rates started trending down in November 2011, but activity really gathered pace in the last year,” Mr Ryan said.
“We’ve always had a strong contingent of locally-based clients, but interstate-based and overseas investors have increased their presence recently.”