Luxury Homes? The number one is Sydney…
If you did not know which has more expensive homes between Sydney and Melbourne, then the answer is the former; Sydney. The median home price in Sydney is AUD10,060,000 (RM3,296,000). Source of info is realestate.com.au (click to go read) In fact, I vividly remember this conversation I had with the taxi driver who was driving my family and I to our hotel in Sydney 3 years ago from the airport.
In the conversation (Yes, I love speaking to taxi drivers), he told me that he’s earning an income which is comfortable for him in terms of food but he hoped that the property price could be more affordable. He was renting and he was not from Sydney. With the current median price, I suspect I may have the same kind of conversation again when I visit Sydney in the future.
As a property market for the world however, Sydney is very highly ranked. Let’s see that Knight Frank’s latest report Prime Global Forecast 2021 / 2022 has to say.
Article in domain.com.au Knight Frank’s latest report Prime Global Forecast 2021/2022 says that the luxury residential market is tipped to rise 10 per cent this year, making it the world’s leading city for luxury property growth.
The report showed that wealthy Australians have been buying homes at home instead of abroad. There were 1429 prime sales recorded in the first quarter of 2021.
In Sydney’s $20 million-plus trophy home market, there have been more than 20 sales in the first half of this year and this does not count a number of settlements in that range at Crown’s Barangaroo tower. In 2020, there were just 17 trophy sales of more than $20 million in Sydney. The article is a very comprehensive one with examples too. Do read it here: Article in domain.com.au
Luxury property market is really not the typical property market
When we speak about the property market, we do not lump the luxury homes with the common homes. The reason is because when we look at properties which are AUD5 million for example, the person buying it would most probably not be someone earning just enough income to qualify for the loan. It’s just too risky and if I am the bank, I would also do my best to hedge my risks too.
This is why even if the general market is negative, the luxury property market may still be buoyant. This is why even if the property price is under pressure, the owners of these luxury property homes may have the financial capability to ride out the storm.
This is also why property transactions for these luxury homes may continue to happen because the buyers may see value and they could actually afford it too. In fact during good times, the numbers would just shoot up suddenly and during not-so-good times, it may just hold.
By the way, there are certainly reasons why some people could afford these luxury homes yeah. Look up the reasons how they got to where they are and maybe follow them? Haha. Who knows, that next buyer of a luxury home in Sydney may just be you in approximately 638 days from today? 🙂 In the mean time, stay safe.
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