“Eye Candy ‘What the big money will buy’?” is the Theme of this month’s HTW Month in Review
HTW are talking about the very aloof end of the market. It is here that buyers become impervious to trifling movements of things like interest rates, and much keener to ensure that political turmoil in a far off island state doesn’t interfere with their gold mining exploration.
Opinion on the Melbourne residential market begins at page 25. Here are some highlights:
•During the global financial crisis the prestige and super prestige property market was hit hard.
•Holiday homes were generally the first to be put on the market, followed by investment properties and then personal homes.
•Consumer and business confidence has increased, interest rates are low, and the outlook for the USA is brighter while Europe is still trying to push through its economic issues.
•Chinese investors who face tough property investment restrictions in their own country are looking to Australia as a safe and lucrative place to invest.
•The government’s introduction of the Significant Investor Visa which was introduced on 24 November 2012 is already showing signs of prevalence particularly in the apartment and prestige market – the government will fast track residency for investors who invest at least $5 million in the Australian economy.
•While the prestige detached housing market is leaning towards a seller’s market, the high stock level of prestige inner city apartments is creating a favourable environment for buyers.
•There is a hangover of stock, particularly in the Docklands.
•Given the high proportion of land value for prestige and super prestige properties, there is room and often capital to be gained from renovation or new buildings.
•With strong demand from international investors, the outlook for prestige and super prestige property looks positive, particularly for houses where an under supply may eventuate.
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Thanks to Alphabroker for this summary