Despite average punters paying thousands more in monthly mortgage costs, agents say there is no shortage of trophy home hunters with deep pockets.
The nation’s most expensive postcodes are resisting the real estate downturn as cashed-up buyers continue to compete for trophy mansions while other suburbs are squeezed by rising interest rates.
Analysis of price movements in the 98th percentile elite suburbs, typically inner and waterside suburbs around Melbourne and Sydney, are rising in value despite neighbouring areas being under pressure. Perth’s poshest waterside suburbs, such as Cottesloe and Nedlands, also continue to shine.
Property specialists claim strong demand is being underwritten by cashed-up foreign buyers and expats, a shortage of supply and confidence that real estate is a resilient long-term investment.
“The ultra-high end of the market generally shows less cyclicality than other parts of the market, with buyer demand and homeowner sentiment more influenced by trends in business conditions, or financial and equities markets,” says Tim Lawless, research director of CoreLogic, which monitors property markets.
Median prices in the nation’s top two percentile areas range from around $4.65 million in Sydney to around $3 million in Melbourne, $1.9 million in Perth and about $1 million in Darwin, according to CoreLogic’s exclusive analysis.
In Melbourne, prices rose by around $30,000 to $3.1 million in the 12 months to the end of July while in Brisbane, the top-performing capital, they jumped about $350,000 to $2.1 million over the same period.
In greater Hobart, top-end prices bucked the slowing trend in other suburbs by rising nearly 14 per cent, or $187,000, to $1.5 million.
In Melbourne, prices rose by around $30,000 to $3.1 million in the 12 months to the end of July while in Brisbane, the top-performing capital, they jumped about $350,000 to $2.1 million over the same period.
In greater Hobart, top-end prices bucked the slowing trend in other suburbs by rising nearly 14 per cent, or $187,000, to $1.5 million.
98th percentile median house and unit values ($)
