Buying real estate of any kind is a big investment and if you are buying a luxury house, that investment can be even more significant. It goes without saying that everyone buys property based on the budget they are comfortable with, but it’s also a fact that prices of luxury homes in Sydney are going through the roof and even the very wealthy are now reconsidering their decision about the size of property and kind of home they want to buy.
As is the case with every city, the locality you decide to buy your house in will be one of the key factors that determine its price. Luxury homes on exclusive properties or along the beachfront are going to be significantly more expensive than ones in other areas that are out of the way. If you are planning on buying a luxury home in Sydney, you will have to conduct a considerable amount of research. As per the latest Knight Frank projection for 2015, Sydney ranks second in luxury home market-price growth, with New York in first place.
Currently, even the median house price-range in Sydney is a whopping $654,000. As per latest statistics, the city has the highest median house-price in Australia and is way above Canberra- $549,000) and Darwin- $540,000. Melbourne is at $505,000) while Perth has a median price range of $520,000 and Brisbane-$455,000, Adelaide-$390,000 & Hobart is at $340,000.
When it comes to the luxury home market in Sydney, these costs are extremely high. Very recently, a mansion located on Victoria Rd, in Bellevue Hill (Barford) hit the market with amazing price expectations of about $60M. Even up until 10 years ago, Sydney had 56 suburbs that were in a million-dollar median or more. Now, the city boasts 197 millionaire neighbourhoods. As a comparison point, Melbourne has only 37 million-dollar suburbs, while Perth has 31 and Adelaide has 9 and Brisbane has only 6.
Amenities and More…
Many Sydney suburbs have luxury homes that have 20m pools, tennis courts, sprawling grounds and a range of latest amenities. In many places the styling of the home, its layout and the architectural detailing as well as the amenities decide what the asking price for that property will be. In some instances, it also seems like the prices of these luxury homes is determined by the celebrity status of its previous owners.
Many realty agencies that operate exclusively in the luxury residential property market do not even list prices on their sites and the prices quoted are provided on application only. Many harbour-front properties in Sydney have price tags in the A$75 million-A$100 million range. Of course, these properties cover multiple land titles and are exclusive in nature.
So what is it that has led to this alarming price rise in the luxury residential segment in Sydney? The answer lies in the rising business confidence as well as more confidence about political stability in the country. Sydney is now attracting a lot of Foreign Direct Investment in properties. The estimation is that in 2015, there will be a 5% growth in the luxury property market in and around Sydney. Another factor that is pushing the prices higher is that the luxury property supply is quite limited. In 2014, Sydney had the most expensive residential properties in the country and even in 2015; there is no sign of a change in this trend.
Top Notch Luxury Real Estate
There is no doubt about the fact that Sydney is now the centre of the luxury residential property market in Australia. The city is beautiful, has safe neighbourhoods, offers stunning views of the ocean, has a lot of green and open spaces, is a business centre and provides the best aspects of the modern world. Even as it is modern, many suburbs hold a very non-city-like charm and over the years, the wealthy have acquired sprawling properties and built impressive homes on them. And so, if you are looking for a luxury home in the Sydney market, be prepared to loosen those purse strings because the city has a price-surprise in store for you.
For any more information about planning your luxury home, call us today. We work very closely with our clients to ensure they get the kind of solutions they need.
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