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THE adage that top-end residential property has the biggest rises and falls is ringing true, with new figures showing sharper swings during the past five years than middle or lower priced homes.
Those who have lashed out and spent big money on a home may be forgiven for acquiring a few more grey hairs during the past three years.
Premium property has been on a wild ride in that time and, while values have risen, sales volumes last year were well down on the 2007 boom year, according to residential researcher RP Data.
In 2007, as most of the property market was showing strong gains, the most expensive 20 per cent of Australia's suburbs recorded price increases of 19.8 per cent, while the broader housing market gained 13.7 per cent, according to RP Data national research director Tim Lawless.
Then the global financial crisis kicked in and prices in premium suburbs fell by 7.4 per cent while the broader market fell 2.5 per cent. Now values have rebounded by 12.1 per cent during the calendar year compared with 11.3 per cent across the broader market.
Although it has greater volatility, the upper end also has had a bigger increase during a five-year period, with an average annual gain of 8 per cent year on year compared with the middle of the market, where values rose 6.6 per cent, and the bottom 20 per cent of the market, which rose by 5.8 per cent.
But RP Data says sales volumes in the top end haven't returned to anywhere near the levels recorded back in 2007. Sales of $1 million-plus houses are 21 per cent lower compared with 2007 and $1m-plus units are down 40 per cent. "The numbers of premium sales across parts of Australia remain well below average," Lawless says.
On the Gold and Sunshine coasts in Queensland, the Tweed coast and in the Byron shire in northern NSW, the number of $1m-plus house and unit sales are down about 55 per cent on 2007.
The suburbs recording the largest number of premium sales haven't changed a great deal in the past five years.
Read more ...
Jenny
Those who have lashed out and spent big money on a home may be forgiven for acquiring a few more grey hairs during the past three years.
Premium property has been on a wild ride in that time and, while values have risen, sales volumes last year were well down on the 2007 boom year, according to residential researcher RP Data.
In 2007, as most of the property market was showing strong gains, the most expensive 20 per cent of Australia's suburbs recorded price increases of 19.8 per cent, while the broader housing market gained 13.7 per cent, according to RP Data national research director Tim Lawless.
Then the global financial crisis kicked in and prices in premium suburbs fell by 7.4 per cent while the broader market fell 2.5 per cent. Now values have rebounded by 12.1 per cent during the calendar year compared with 11.3 per cent across the broader market.
Although it has greater volatility, the upper end also has had a bigger increase during a five-year period, with an average annual gain of 8 per cent year on year compared with the middle of the market, where values rose 6.6 per cent, and the bottom 20 per cent of the market, which rose by 5.8 per cent.
But RP Data says sales volumes in the top end haven't returned to anywhere near the levels recorded back in 2007. Sales of $1 million-plus houses are 21 per cent lower compared with 2007 and $1m-plus units are down 40 per cent. "The numbers of premium sales across parts of Australia remain well below average," Lawless says.
On the Gold and Sunshine coasts in Queensland, the Tweed coast and in the Byron shire in northern NSW, the number of $1m-plus house and unit sales are down about 55 per cent on 2007.
The suburbs recording the largest number of premium sales haven't changed a great deal in the past five years.
Read more ...
Jenny