Investing in Prestige Property Market
Amid the global economic recession, numerous markets and sectors have suffered due to losses. Chief of which is the real estate industry, specifically the prestige property market in Australia, with prestige property defined as properties worth around 3 million to 5 million dollars. High prices in the middle of the economic crisis, coupled with lowered demand, served to cause Australia’s high-end real estate market to suffer tremendous losses.
Additional factors such as lowered confidence on the consumer side, as well as the hard stance of sellers on the purchase price of these properties, served to worsen the already bad market. The vendors became increasingly resistant to compromise, rendering prestige property all the more unsellable during the then financial climate. However, with the recent developments in Australia, specifically the property boom in various locations, the prestige property market is becoming a prime area of investment.
Prestige property market has bounced back since the early part of 2009. From prestige properties being sold less than their net worth in 2007, they became very in demand in 2009, to the point that the demand may even exceed the supply of said properties. Several factors contributed to the promising performance of prestige property market. One of which is the stability in the finance and banking sectors. The rebounding share has contributed as well to the boom of prestige properties.
With the economic recession a thing of the past, now is the right time to invest. Property investment, particularly in Australia’s prestige properties, is likely to turn out to be a really good decision. Prestige property market is forecasted to continue doing well. It is best to take advantage of the present prices of luxury real estate in Australia as these will only go up. It has been reported that the Australian Property Monitors or APM has estimated a gain of at least 10% on the country’s luxury suburbs. The increasing demand from foreign investors wanting to invest and buy Australian properties is said to have largely contributed to said predicted growth of the prestige properties.
Numerous development and industrial projects have been pledged in the coming years which will augment the property boom already being experienced by the mining towns in Australia. With access roads to link developed areas together, real estate prices will be at a premium. It is thus projected that real estate values will become much higher, and it is all but guaranteed that a high return of investment will be earned.
Investing in prestige properties in Australia entails having to consider the supply and demand in the chosen location. More supply of homes would mean being able to negotiate more as the market is oversupplied. However, a lower number of homes in a chosen suburb would be a different scenario. Financial experts would advise that for instances as such, it would be better to purchase a house already even before any auction can be held. But as a whole, given the present situation of the market today, purchasing prestige properties in Australia appears to be a wise investment for both local and foreign investors.
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