STRONG PRESTIGE SECTOR HERALDS MARKET RECOVERY

In a welcome show of strength and resurgence, we’ve seen impressive gains in the prestige property arena over the last few months, which is always a strong sign of a broader market recovery.

In fact, the latest findings from property analytics firm CoreLogic show that while million-dollar property sales were among the first to fall when the downturn began, as the market begins its slow recovery, they’ll also be the properties seeing the largest improvements. CoreLogic figures also showed that 70.4% of the 1,107 auctions held across Australia during the week ended Sunday August 11 had cleared, well up on 66.4% of auctions held the week before.

There have been 16 sales above $3m in Balmain, Rozelle and Birchgrove during the last quarter and Cobden & Hayson was responsible for 11 of them, giving us almost 70% share of the local prestige market. Among these sales were 123 Louisa Rd, Birchgrove, 33B Bruce Street, Rozelle, 10 Johnston Street, Balmain East and 40 Thames Street, Balmain.

A number of these sellers commented that they’d seen us achieve stronger than expected prices when the market was tough, which encouraged them to list their own properties, buoyed by these successes. Each of these prestige sales had about 80-90 buyer groups through with 9-10 contracts issued, highlighting the strength at this end of the market.

How did we achieve this? It takes time to build an understanding of the market dynamics, nuances and buyer profiles. We’re the only agency in the area with more than 20 years of history selling prestige property and it’s this level of expertise, trust, insight and know-how that gets results.

About 80% of prestige buyers are local but we’re still pulling in expats, interstate purchasers and buyers from the Eastern Suburbs and North Shore. Most importantly, we know how to engage and negotiate with these individuals. Interest rates are historically low and are likely to be for some time. Especially in the more affluent suburbs we see this environment as an excellent opportunity for people to upgrade. We’re still seeing a big influx of downsizing baby boomers moving into apartments and low maintenance homes, freeing up some prime houses.

With overall market conditions rallying, we’re predicting that the prestige end of the market will continue to strengthen. There’s a strong buyer pool to work from and the sentiment from these purchasers is extremely positive. We’re likely to see more prestige stock hitting the market as sellers become less hesitant and more encouraged by the strong results we’re seeing.   

Posted in Uncategorized on 15th August, 2019