After being trapped in their homes for months and having plenty of time to think about their lifestyle, people have realized the worth of space and quality of life. This enlightenment is driving the booming demand for luxury homes in Australia.
As reported in the New Home Buyer Research, 70% of people made changes to their homes post COVID to make room for their hobbies and flexible work roles.
Improvement in economic conditions and low expenses because of lockdowns means more savings for people. Additionally, factors like closed borders, stock market rally, historically low interest rates have boosted the overall real estate market.
People are happy to invest in luxury homes as they need more space to set up their home offices and adjust themselves to a flexible work environment.
The demand for bigger homes with a wide array of amenities is exceptionally high in locations that have been subjected to repeated lockdowns. People are concerned about further lockdowns and having to live in a compact and cluttered space.
People are demanding to change floorplans to have more storage and office space, multiple living areas and more outdoor space. Porter Davis, a Victorian homebuilder pointed out this trend to be evident throughout the sales of their largest and luxurious property.
We collated the statements of various real estate industry experts from different regions across Australia about their take on the luxury housing market.
Emma Bloom, Director, Morrell and Koren that specializes in Melbourne suburbs, mentioned “It is hot at the top.”
Richard Simeon, principal of Simeon Partners in Sydney said, “It is flying. There are a lot of top-end buyers”.
Talking about Brisbane, Paul Arthur, CEO, Queensland Sotheby’s International Realty said, “Luxury has never been as strong. We are getting the full asking price for properties”.
Tim Lawless, head of research, CoreLogic mentioned that the overseas demand for luxury homes from Australian expatriates has also picked up.
Real estate agents claim that amidst covid restrictions closed borders have curtailed the annual overseas trips for many. This is also leading to strong demand for multi-million dollar holiday homes.
Space, comfort, and natural light have become some of the most essential features for choosing a home. From people buying newly built homes, 84% of people place importance on high-quality living that promotes physical and mental wellbeing.
People spending more time at home during the COVID-19 pandemic has triggered realization for healthy living and placed greater importance on cosy living spaces.
The need for extra rooms, more indoor space, outdoor entertainment areas or bigger backyards is surging the demand and enquiries for ‘super luxury’ homes is highest among homebuyers.
The residential property market of Australia has improved with changes in national prices and monetary policies. Another key indicator of market strength i.e. the auction clearance rates have also picked up. The number of days a luxury property stays on the market has declined.
Usually, it’s the premium housing markets that lead the upswings and downturns in the industry. In 2018, the premium house sales reached a record of about 6 per cent and then dropped 4 per cent flat in the next few months.
With the housing market conditions growing the same way right now, it will be interesting to see if this trend plays out again.
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