Premium Property Worth the Price?
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What are the current trends in the premium property market?
It's The Real Estate Podcast, brought to you by Ray White, the largest real estate and property group in Australasia. And welcome to another episode of The Real Estate Podcast, where we're going to be looking at premium properties with regard to some of the prices being paid and whether you can justify it or maybe another way of looking at it, is it worth it? There is no doubt that at the end of lockdown, a supply surge unleashed on the market, which had a profound and expected result. And the huge spike in price growth experience throughout the pandemic has cooled somewhat. to more of a sustainable level, and I think that property buyers could be feeling a little bit more empowered by some of the choices out there.
However, prestige residential properties in prime locations seem to be the exception.
How has the pandemic affected property prices?
Demand for these properties are still buoyant and lofty in prices. The premium property market appears to be more resilient than other price segments in the current climate. which we will talk about as well as the premium property markets in Melbourne, Brisbane, and Sydney. So to unpack a little bit of this to understand it better, we're joined by Rich Harvey from Property Buyer. G'day, Rich. Welcome back to the podcast. Thank you, Craig. Always a pleasure to be with you.
What factors drive high prices in premium properties?
And just talking about, I guess, Omicron and the positivity of the start of the year, even though we're well into February, just sort of has that feel, that kind of confidence that yes, while Omicron is circulating, there seems to be this sort of underlying current that we're sort of moving forward. Yeah, you're right. I think I've just noticed talking to friends, family and other business owners that, you know, the sting in the tail for Omicron doesn't seem to be there. We're all majority of people are vaxxed. Obviously, people that have got it are having some pretty negative side effects, but it's not the sort of fear and dread that everyone had of catching it. It's almost like, have you had it?
Yep, I'm over it. And so there seems to be a bit of renewed confidence now with people getting back to school, back to work, back to uni and just getting on with life. And I think we've all wanted more of that normality back. And finally, let's get COVID behind us. You know, let's learn to live with it. And that's translating into my own business, certainly a lot of steady inquiry and hopefully for other people about getting on with the year ahead. Oh, yeah. Yeah, we want to get on with things. We've sort of paid the price, haven't we, over the last couple of years. So, yeah, let's move forward. Now, talking about positivity, these premium property prices, what is driving in the premium property sector these high prices?
What we're seeing at the moment, primarily a drive to lifestyle. Premium property has always been the aspirational thing that the wealthy buyers want to get into and the suburbs they want to get into. But what drives it primarily is supply and demand, the fundamentals of economics. If you look at the key reasons, it's location, it's amenity and it's demographics. If you want to break it down into those three things. So, you know, real estate's always about location, location, location. And, you know, if you look at the most expensive piece of real estate in Australia on Wolseley Road at Point Piper, where there's $100 million homes on that street with point blank views to the Opera House, the bridge and the Inner Harbour area, you know, that's the pinnacle of premium real estate in Australia.
And, you know, God's not making any more land. If you think of all of the premium suburbs, they're highly sought after and there's very, very strong competition. So there's only so many properties that you can physically put into those areas. The other thing is they're very tightly held, Craig. They're not turned over very often.
Who are the main buyers in the Sydney prestige market?
If you look at the length of stay or the length of time between purchase and sale, it's not your average seven to 10 years. It's often a lot longer. It's held for generations and it might be passed on through different generations as well.
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Chapters
8 chapters
1
What are the current trends in the premium property market?
0:02–0:57
2
How has the pandemic affected property prices?
0:57–1:26
3
What factors drive high prices in premium properties?
1:26–3:45
4
Who are the main buyers in the Sydney prestige market?
3:45–5:01
5
What is the situation in the Melbourne prestige property market?
5:01–5:23
6
How does the Brisbane property market compare to Sydney and Melbourne?
5:23–6:40
7
What are the investment considerations for buyers in premium suburbs?
6:40–6:51
8
What advice does the guest offer to potential property investors?
6:51–11:21
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