Luxury property boom
Rising property prices have not been enough to deter those looking to secure something at the high end of the market with new analysis showing luxury property prices have almost doubled in the past ten years.
According to PropTrack dwelling prices across the board rose by 72.5% between 2013 to 2023, while the luxury end of the market increased by 89.5% during the same period.
Luxury house prices rose by 99% over the past ten years, while units were up by 61%.
PropTrack senior economist Paul Ryan says demand during the pandemic drove up luxury property prices, particularly in waterfront locations such as the Sunshine Coast and on the Mornington Peninsula.
“Throughout the pandemic, people had money in their pockets and couldn’t travel, which was pushing people toward this form of luxury,” he says.
“Strong economic performance has benefited high-income earners and that has, in turn, benefited luxury property.”
He predicts after such a strong period of price growth the pace of growth may slow down in 2024 to around 1% to 4%.
“We’re not expecting the outperformance of the luxury market that we have seen over the past 10 years,” he says.
According to CoreLogic figures housing values posed a broad-based rise in February, up by 0.6%, the strongest monthly gain since October 2023.
