With a focus on high-end decor, huge rooms and impressive frontages, Australia’s prestige property market is often viewed purely through the glamour of the homes themselves. But there is a different side to the industry — the challenge of buying a dream home at the top end of the market.
Prestige properties have been relatively unaffected by economic downturns and other property trends and forecasts. Often, owners are happy to hold off on selling unless there is a significant offer, and even when properties enter the market, they are usually sold by silent auction or private sale, rather than advertised online.
With few homes on the market, and the stakes high, buying a prestige property is a competitive experience. Nor is this the extent of the challenges. High-end buyers may have a very clear idea of what they want, but disposable income does not mean that the ideal property is necessarily out there, or within the right high price range.
There is, therefore, a specific set of skills, connections and knowledge required to succeed in this type of property market. As the majority of prestige properties are sold off market, it’s important to have the right connections to tap into that market.
While house price growth across major Australian cities has shown signs of slowing, the prestige market ($3 million and above) has remained strong. The demand for prestige properties continues to comfortably outstrip supply, and with a limited supply of prestige properties available, the market will remain competitive.
As we head into the summer months, we typically see competition between high-end buyers ramping up. This follows a strong winter, during which we saw an increase in the number of prestige properties bought, and a threefold increase in homes over the $6 million mark being purchased. This further cements the trend that the market for prestige properties shows no signs of slowing and points to a busy season ahead.
Buyers’ agents play a particularly important role in prestige property. In a competitive market, where buyers often have particular wants and needs, the process of identifying properties, presenting a tailored selection and negotiating a great price without paying a premium at auction is vital.
Because prestige properties are often sold off market, it’s important to have the right connections to tap into that market. Knowing the market, the areas or even specific properties which are most likely to offer the best solution for a buyer, as well as the sellers’ agents most likely to be involved, all contribute to finding and securing the right outcome.
Nor does this specialist knowledge end with a list of potential homes. With little comparative information to determine the right price, an experienced hand who has seen similar properties in similar markets can make all the difference when finding the right price point for both buyer and seller.
Prestige buyers, by their very definition, have high budgets, but they have a budget nonetheless. Overpaying on a property can be costly, both in terms of that property meeting expectations versus costs, and its profitability when it’s resold.
When the stakes are high, and competition is fierce, having an expert in your corner is key to succeeding in the prestige market. By bringing knowledge of the market, connections to the right people and expertise in expectation management, experts play a vital role in keeping the market moving and helping buyers secure a dream home.