Thu, 27 Sep 07
In many ways the UK and Australian residential markets have mirrored each other in recent years, with big price growth from 2000 to 2004 a 2005 slowdown and more latterly a recovery in pricing and demand...
Knight Frank’s new Australia Property Report highlights how closely the top end of the Australian market has moved in a similar pattern to that experienced in London and the prime UK markets.
In both counties, 2007 has seen the prime residential markets continuing to outperform the broader residential market. I
In Australia the top end market has seemed immune from the volatility in the lower to middle end of the market; the top-end has seen continued demand with record prices being set in numerous suburbs in most cities.
Strong demand driving prices
The high-end, prime Australian properties continue to be highly sought after by high net worth purchasers, not affected by the current interest rate environment.
Liam Bailey, head of Residential Research in the UK commented: The properties that are characterised by good access, quality finishes and expansive views, particularly water views, are in strong demand and will continue to outperform.
Strong demand will continue to drive prices higher in the AUS$5 million plus category and only a substantial downturn in the economy or business conditions would impact upon buyer confidence, which is unlikely.
Expatriates have become large drivers of the prime Australian market, particularly in Sydney, with many securing properties years before their scheduled return and in some cases specifically for their immediate family members. This trend is anticipated to continue.
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