Part 1 of a 2 part Investigation
No matter where you go in property obsessed Sydney you will hear real estate agents, friends, family, neighbours and people from all works of life giving their take on how Sydney is faring in the Luxury Real Estate arena. I hear many people say that the Luxury market has remained largely unaffected. Is this the truth or are people blinded or generally ill informed?
It’s important to look at the volume of sales in Sydney’s most expensive harbour and beach front suburbs and for the purposes of my investigation I have used 2007 sales and 2008 sales to date (we are almost finished yet another year).
Marquette Turner Luxury Homes considers any property above $1 million to be in the Luxury category as only 3.65% of all residential property sold in Australia in 2007 achieved a price equal to or greater than $1 million. In other words over 96% of residential property in Australia was sold for less than $1 million in 2007 – it really highlights just how special and rare luxury homes are.
When looking at the very top end – (we call this our “Private Brokerage” end of the Luxury market) we have chosen $5 million as our benchmark figure. Any property sold at or above this price is part of our “Private Brokerage” results and represent the very finest homes sold in Sydney’s harbour front and beachside suburbs.
So to the truth – are Luxury sales in Sydney remaining largely unaffected by the economic upheaval that we are currently experiencing? Without going into a price debate I have chosen volume as our indicator as “Private Brokerage” homes are unique and are very difficult to compare simply by looking at sale price from year to year. They are very emotional purchases and appeal to a very limited and privileged few. So let’s let the figures speak for themselves:
In 2007 in the Local Government areas of Sydney, Manly, Mosman, North Sydney, Waverley and Woollahra there were 379 sales of residential properties which qualified to be part of the Marquette Turner Luxury Homes’ “Private Brokerage” Results. In 2008 to date when looking at the same areas there have only been 202 sales which would make the grade – so have Luxury Property Sales been affected?
The simple answer is yes, they most certainly have – volumes are down by close to 50% for a myriad of reasons which we will explore in Part 2 of this fascinating look into super Luxury residential Sydney.
Click on the link for PART 2