- Strong luxury property market fueled by short supply, and low interest rates, says NAB
- Toorak market held strong with $43.1M mansion crowned most expensive property sold at auction
- Sydney prestige property market flourished with 170 sales exceeding $10M
Despite lengthy lockdowns impacting property sales in Australia’s most prolific prestige property markets, luxury properties prevailed in 2021 with a record-breaking year.
Last year saw high-net-worth individuals snap up premium properties at high volumes and jaw-dropping prices, propelling price growth in the broader residential market.
According to the National Australia Bank’s (NAB) Luxury Property Market Update, a short supply of luxury properties, the return of expats, and borrowing costs at an all-time-low added fuel to the fire.
With strict border closures putting travel on the back burner, many buyers also diverted holiday funds towards purchasing a home instead.
As for the coming months, NAB predicts international buyers to return to the luxury property market as travel resumes, resulting in an uplift in sales in the short- to medium-term.
Melbourne market strong as Toorak shines
The Melbourne prestige property market has held strong, despite reigning as the world’s most locked down city.
Several sales exceeding $10 million were recorded in the Stonnington and Toorak areas, with at least 35 of those in Toorak alone,14 of which had a sale price above $20 million.
Toorak smashed yet another record with the sale of a home at 47 Lansell Road which was purchased for a reported $43.1 million, earning the title of most expensive property sold at auction nation-wide and the second most-expensive property in Victoria.
Since the re-ignition of the market in mid-September, strong sales results have been recorded in Armadale, South Yarra, Hawthorne and Malvern, while easing Covid restrictions have prompted a surge in trophy home listings in Kew and Hawthorne.
The coastal suburb of Brighton also smashed records with a house on Kent Avenue selling for $25 million and an oceanfront allotment fetching $20 million, becoming the highest value vacant block sold in the suburb.
The Mornington Peninsula joined other high roller areas with numerous sales over $10 million, particularly in the tightly-held areas of Flinders and Portsea.
Sydney sales soar to new heights
In an astonishing feat, the Sydney luxury market recorded 170 sales in excess of $10 million by the beginning of October last year, surpassing the 2020 figure of 140 sales.
Sales activity peaked in the second quarter as the volume of sales between $3 and $10 million jumped 23% from the previous quarter, before activity slowed marginally entering the third quarter.
Among the capital’s most notable sales were the “Rosemont” estate, setting a new record for the suburb of Woollahra in an off-market sale, and the waterfront property of “Villa Florida” in Rose Bay. The properties are reported to have fetched approximately $45 million each.
Several sales in excess of $20 million were seen in Vaucluse, Mosman, Northwood, Bronte and Tamarama.
Premium apartments were also among the first-class sales, with the ANZ Tower penthouse snapping up $60 million, along with the title of 2021’s most expensive residential property.
The Sirius development at The Rocks also caught the eye of buyers with a buying blitz at the opening seeing $400 million in stock and all seven penthouses sold.
Coastal properties reign in Queensland
Unmarred by tight border restrictions, Brisbane had a robust year of premium property sales with diverse interest from local, interstate and returning expat buyers alike.
Suburbs such as Ascot, Kangaroo Point, Paddington and Hamilton set new records with prices surpassing $7.5 million.
Sales in the luxury Gold Coast market were particularly saturated towards beachfront and canal frontage properties, with strong results seen in the Sovereign Islands, Isle of Capri, Mermaid Beach, Broadbeach Waters, Currumbin and Palm Beach.
The Sunshine Coast also recorded the most lively luxury market conditions ever seen, with Noosa in particular observing 28 sales exceeding $5 million between July and October.