FIND YOUR LOCAL BUYERS' ADVOCATE:
    TALKS & PODCAST           CALL US CALL US
1300 655 615
 
 

The
Propertybuyer

Podcast

Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Mon 12 Feb '24 with Rich Harvey Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 
 
Sat 27 Jan '24 with Rich Harvey Home Buying in the Eastern Suburbs – A personal journey
 
 
Sun 7 Jan '24 with Rich Harvey Economic and Property Market Outlook 2024
 
 
Thu 21 Dec '23 with Rich Harvey Sydney’s Luxury Property Market Insights
 
 
Mon 11 Dec '23 with Rich Harvey Economic Recession or Recovery - What’s next?
 
 
Wed 22 Nov '23 with Rich Harvey Using Data & AI for Better Property Decisions
 

 

Listen to many more
podcasts on our
Podcasts page.

 
 
 

Propertybuyer Blog
Property advice, market updates & more

 

Premium Property: Worth the Price? - January 2022

January 11, 2022 / Written by Rich Harvey

 

By Guest Blogger, Leanne Pilkington, CEO,

Laing & Simmons and President REINSW

 

The supply surge unleashed at the end of lockdown has had a profound and expected result. The huge spikes in price growth experienced through the pandemic have cooled to a somewhat more sustainable level, and property buyers are once more feeling empowered by choice. 

However, prestige residential properties in prime locations seem to be the outlier, with demand for such properties still robust and the prices achieved still eye-catching. This month, Laing+Simmons CEO Leanne Pilkington looks at why the premium property market appears to be more resilient than other price segments in the current climate. 

No investment is risk-free but if you consider what typically drives a premium property purchase, it’s lifestyle. This includes location and if you think about the premium markets in Sydney, and across the country, there’s typically a geographic reason for properties in those areas to be consistently desirable. 

The Eastern Suburbs and Northern Beaches have the coastline; the North Shore has the harbour. Each conjures visions of sunshine, relaxation, natural beauty. Plus, there are only so many properties which can physically occupy these landlocked postcodes. This puts a finite limit on supply. 

Luxury apartments aside, prestige residential typically means the family home. Prestige markets are tightly held, properties are held for the long-term, and if a property asset is held for long enough, capital growth is as safe a bet as any investment out there. 

When these properties do become available, competition is intense, and we’re certainly seeing that play out in the current market. Where prices in other segments have cooled, prestige residential remains on a steady upward trajectory. 

Auctioneers are reporting softening interest generally, across suburban markets and different property types, with the exception being top-end properties in blue-chip areas. 

Generalising can be dangerous, but it’s fair to say that the greatest risks in buying prestige residential property are probably in the purchaser’s own financial circumstances as opposed to the asset itself. 

What constitutes a good investment must necessarily be tied to the purchaser’s individual circumstances. Obviously, servicing a multi-million-dollar mortgage requires a large deposit, a high income and secure employment. This points to why prestige properties are less likely to be flipped. 

If we accept that lifestyle is the main driver for buyers of premium properties, the expectation of capital appreciation will still be there, but the timeframe for this to materialise is perhaps more flexible. It usually won’t matter to such buyers – or at least, it won’t matter as much – how values shift in short-term stints. 

Most will have made the purchase because that’s where they see themselves long-term, perhaps in their ‘forever home’. There’s confidence that capital growth will inevitably come. Historically, this confidence is warranted. It’s why available properties in these prestige markets are often marketed as ‘once in a lifetime’ opportunities.


  To have one of the friendly Buyers' Agents  from propertybuyer to contact you

in regards to buying property,

click below to 

Send us your property brief   or

call us on 1300 655 615 today.

The Propertybuyer
Podcast

 
Mon 12 Feb '24
with Rich Harvey
Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 
 
Sat 27 Jan '24
with Rich Harvey
Home Buying in the Eastern Suburbs – A personal journey
 
 
Sun 7 Jan '24
with Rich Harvey
Economic and Property Market Outlook 2024
 
 
Thu 21 Dec '23
with Rich Harvey
Sydney’s Luxury Property Market Insights
 
 
Mon 11 Dec '23
with Rich Harvey
Economic Recession or Recovery - What’s next?
 
 
Wed 22 Nov '23
with Rich Harvey
Using Data & AI for Better Property Decisions
 

 

Listen to many more
podcasts on our
Podcasts page.