Luxury home sales have surged across Australia… Curiously, Brisbane prices saw the steepest climb in 13 years. Brisbane premium homes sales, in the $2m-$7m market, escalated by 42 per cent in the last quarter with almost 200 properties sold. Even in the microcosm of our office, Ray White New Farm, Ray White Bulimba and Ray White East Brisbane have already pencilled in more than 216 unconditional transactions in the current quarter, equating to over $319m in sales.
The price surge, particularly in Brisbane’s prestige suburbs, has been fueled by a shortage of listings, relentless buyer demand for upgrading property (which includes renters transforming into first home buyers, families buying larger homes and so on), mass interstate migration, the return of homesick expats, consistently low interest rates and the confidence that comes with a successful Olympics bid.
We have met 4458 buyers at inspections this quarter which gives us an average of at least six interested parties per property. (For context, a few years back agents were happy with two or three registered buyers at an auction; we are at least tripling that number now.)
During the last quarter, we have recorded 71 residential sales under $1m, another 56 for premium homes in the $1m to $5m bracket and sold six luxury homes over $5m and $10m markets.
But what we’re learning from these buyers is that they know what they want. And when they’re clear and have the access to credit, they’re unbelievably decisive. Offers tendered are consistently more than the number of homes listed and are consistently higher than reserves.
I’m delighted to report to buyers who have not yet successfully secured a home that supply during Spring is improving. So many underbidders are ready to own and over the disappointment of not getting the property they want. So, you’ll be relieved to hear that in September alone we listed over 150 sought-after properties to meet this seemingly insatiable market demand.
Interestingly, the AFR reported that in the past 12 months, Brisbane’s premium home prices have risen by 5.8 per cent and on the Gold Coast it is up by 7.5 per cent. Across the nation, Sydney recorded a 6.5 per cent rise and Melbourne’s market was up by 3.6 per cent. This is the third consecutive quarter for record growth in prime residential sales volume across all of Australia’s major cities.
How long this will continue no one knows. All we know is the market conditions we’re in today. And for sellers, they’re great.