Prime property is defined as the top five percent by value, and time on market for the best houses are dropping. Image – Canva.
  • Average days on market for prime property was 119 (Q1 2021)
  • Broader property market was 32 days in May
  • Perth averaged 16 days on market

High-end housing in Australia continues to be viewed favourably. Desirable locations, like the Gold Coast, and Perth, paired with safety from the pandemic, it is no wonder the finest homes in Australia continue to fly off the market….relatively speaking.

How long did houses spend on the market?

Data from the REA Insights Housing Market Indicators Report showed that in May, it took only 32 days for a property to sell. In April that figure was 37 days, and in May 2020 it was 62 days.

That data was for a “typical property” listed on realestate.com.au.

Some parts of the country saw houses sold even faster, REIWA data showed in the September 2020 quarter, Perth houses spent 31 days on market before being sold, that dropped to 23 days in the final quarter of 2020, and 16 days in the first quarter of 2021.

How did the finest fare?

Times for prime properties on the market also progressively reduced. Knight Frank’s Australian Prime Residential Review reported that average days on market for some of Australia’s best houses was 119 in Q1 2021. That’s down from 124 days in the December quarter.

Knight Frank said prime property is generally defined as the top 5% of each market by value.

Source – Knight Frank Research.

The exceptional appetite for Perth property was also clear in the prime property sub-sector, the report noted high end houses spent 27 days fewer on market on average, the most compression across Australia.

Nautilus, the Sydney home considered the finest in Australia, is expected to sell for $50 million, and won multiple awards including Australian Home of the Year. Image – AustraliasFinestHome.com.

The Knight Frank report found the total volume of sales for the country was 1,429 prime properties for Q1 2021, that figure 17% up from the previous quarter and 58% up year on year. The Gold Coast experienced the largest rise in annual sales turnover, up 91%, which was followed by Perth at 85%.

Give me your finest penthouse, please!

Apartment blocks are flooding the Gold Coast market and can be viewed here, here, here, and here, frankly too many to count; the sector also gave Finbar a financial edge, the company reported it will likely post $8.4 million profit after tax following strong apartment sales.

awaken ext
The penthouse at Awaken, on the Gold Coast, sold for $8.15 million, the highest sale ever recorded for an apartment, villa or unit south of Mermaid Beach on the Gold Coast. Image – Supplied.

Knight Frank reported new prime apartment prices have risen 3.2% in 2020, with an indicative price per square metre of $25,500. Sydney was reported as having the largest rise in new prime apartment prices, up 10.6%, followed by the coast with a Midas touch (Gold Coast) at 10%.

Okay, maybe I’ll rent…

The report found gross rental yields were down for the first quarter of 2021, down to 2.64% from 2.69% the previous quarter.

Source – Knight Frank Research.

Prime property rentals were steady across Australia for the first quarter, except for Perth, up 1.1%. Knight Frank reported the annual growth across the country was 5.3%.

Perhaps I’ll move overseas?

Back in February, The Property Tribune reported on what $1 million can buy you in various parts of the world.

Not much in Monaco, only 16 square metres, enough for 4 physically COVID distanced people.

Unsurprisingly, second place was Hong Kong with 21 square metres for your million.

Source – Knight Frank Research.

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