One Australian city's prestige market is once again seeing interest off the back of improving business confidence.
The Real Estate Institute of New South Wales (REINSW) yesterday announced the Sydney prestige market is beginning to see signs of growth.
“After seven years of caution the Sydney prestige market is showing solid signs of growth as confidence returns to the marketplace following the GFC,” REINSW president Malcolm Gunning 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,” he said.
BradfieldCleary Double Bay director and chief auctioneer Bob Guth said over the past year the market has been stronger than at any time since the GFC.
“From 2007 to 2013, there were significantly fewer transactions at the top of the market,” Mr Guth said.
“Confidence has come back into the world economy and that is why we have seen an increase in interest in the prestige market,” he said.
The agency’s sale of properties over $3 million has more than doubled in the past 12 months and Mr Guth expects similar activity in other prestige markets.
“In fact, interest in all prestige homes has returned regardless of location and they are now performing better than before the GFC period,” he said.
The lower north shore prestige market is being driven by banking bonuses and Chinese buyers, according to Richardson & Wrench Mosman principal Stephen Patrick.
“It will remain that way for a while,” Mr Patrick said. “It is going to be a slow and steady market over the next few years,” he said, before adding that, “The business community is still cautious and it is going to take time for it to grow steadily, as it should.”
Mr Gunning said there were clear differences between Sydney’s two prestige markets.
“The lower north shore is a smaller more conservative market, whereas the eastern suburbs offers a more vibrant and diverse range of properties,” he said.
“This is why there is more caution seen in the lower north shore area.”