“Melbourne has been a bit slower because prices haven’t moved as fast…because of the lockdowns, but now it looks like there’s a lot of catching up going on,” she said.
Victoria’s house price record was broken twice in one week last month. A rebuilt mansion in Toorak sold for over $80 million, while another sold for almost $75 million.
As Australia’s luxury market cooled, demand for rare homes would still outstrip supply, Conisbee said.
In Sydney, Mosman had the most sales above $10 million last year, aged 38, followed by Vaucluse (36), Bellevue Hill (25) and Woollahra (17).
The highest sale in Sydney this year was achieved by corporate lawyer John Landerer and his wife Michelle, whose Vaucluse mansion sold for more than $62 million.
In another bumper sale, medical entrepreneur Dr. Glenn Haifer has paid more than $60 million for the Darling Point residence of Lisa Allen, ex-wife of yachtie Matt Allen.
The Agency’s Ben Collier said prices soared after the first lockdown, due to high demand, a lack of supply and historically low interest rates. But there was a shift in the market late last year as supply and expectations for rate hikes increased.
“When rates started to climb, we saw an immediate impact on the sub-$5m bracket…but as rates continued to climb, we saw this propagate into the sub-$10m bracket. and mid-teens,” Collier said, but added the shift in the market had been followed by declining enrollment.
“People think, I won’t choose to list my property now that the market isn’t as good…we’re still seeing high levels of supply below $5 million, but when you’re talking 10 plus , we saw [the number of listings] down, so prices have stabilized,” he said.
Pillinger’s Brad Pillinger said luxury home buyers were less affected, but not entirely immune, to rising rates and economic shifts. It still met strong demand from high-profile buyers, but supply was limited.
“There’s just a lack of choice that keeps prices up. I think the quantity of sales has gone down, but I’m not sure about prices,” he said.
In Melbourne, where research set the luxury benchmark at $5 million, Brighton (67) had the most upscale sales, followed by Toorak (62) and Hawthorn (29).
Michael Armstrong, partner at Jellis Craig Stonnington, said last year was the strongest market most agents have ever seen, fueled by cheap credit and people earning money. money through stocks and real estate.
This dynamic had changed, but the luxury market was less affected by changing rates or economic conditions. Most high-end homeowners were now sitting on their hands, leading to a shortage of homes for sale, supporting prices.
Armstrong said prices in the $5 million to $10 million range had come back slightly, but not by the amount seen at other price points because revenue had fallen so much.
“People aren’t ready to part with their trophy home in a down market,” he said.