It’s a common theory that stimulating first-home buyers has a knock-on effect to the whole market.
It usually works alone, under the stimulation of government, and it kicks the money up the chain. But right now, it has a significant dancing partner that is also bringing its own stimulus. It’s the prestige buyers, locally and migrating, and right now, that market is hotter than the sand on Boxing Day!
November really felt like a coming of age for our prestige market. The month was decorated with a significant number of sales under the hammer. This new affection for auctions seems to have arrived in the suitcases of our friends from interstate who are pouring across the border and love the transparency auctions bring. In November, I facilitated our annual Prestige Auction Event. We showcased some of the city’s best real estate and featured the sale of a house in Teneriffe for $7m. In the same fortnight, my mate Peter Bergen from Place sold one under the hammer in Clayfield for $7.8m, and the team at Ray White Tugun sold two under the hammer, both for over $8m.
Sydney and Melbourne markets have a more dominant auction culture than Queensland. Subsequently, these buyers are very comfortable with auctions, and when entering a new market, they’d prefer to peg the value against the open market rather than the price expectation of the owner, even if that means paying more. These buyers are driving record prices.
Haesley Cush I This article is from the December 3rd issue of The Courier Mail Digital Edition. To subscribe, visit https://www.couriermail.com.au/