Australia Property

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Prestige property pumped, but pundits ponder where next?
THE AUSTRALIAN NOVEMBER 08, 2014 12:00AM

Ben Collier
Estate agent Ben Collier with client Elizabeth Wadsworth, pictured at Elizabeth’s home in Woollahra that is on the market. Picture: Britta Campion Source: News Corp Australia

THE prestige housing market will finish the year strongly as agents report record auctions and turnover in the lead up to Christmas, but many question whether the heaving city real estate markets will start turning next year.

In Brisbane, agent John Johnston of Johnston Dixon says next year will be tougher because of ­potential interest rate rises while, in Sydney, Bill Bridges of Ballard Property says buyers are banking on the prestige market softening.

AMP Capital chief economist Shane Oliver said Sydney’s prestige market could slow the most of all the capitals because of its strong growth this year.

But Ray White chairman Brian White was confident the prestige market would continue to fire, reflecting the strength of the economy. “Overall, it’s been a pretty bloody good year for everyone,” Mr White said, noting the group sold a record $3.5 billion worth of property in Australia and New Zealand last month.

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Artist Elizabeth Wadsworth is auctioning her Queen Street, Woollahra, residence in Sydney’s wealthy eastern suburbs on ­November 29 and reckons the prestige market will continue to prosper. Price expectations are for more than $8m, through McGrath Estate Agents. Wadsworth, who is downsizing and plans to remain in the area, reckons there is more confidence in the prestige market than in ­previous years. “I just think the economy is better and there is a lot more confidence in the market, ” she said

McGrath Estate Agents chief executive John McGrath said the agency’s offices reported an 89 per cent clearance rate for properties at more than $3m last month, up from 59 per cent for the previous corresponding period. In Sydney, prestige suburbs such as Edgecliff and Hunters Hill reported 38 per cent and 22 per cent increases, respectively, in sales last month.

Ray White’s Double Bay office in Sydney and its New Farm, Surfers Paradise and Ascot offices in Queensland’s more expensive areas were among the agency’s top performers last month. “Never before have we had so many offices achieve $40m in sales,” Mr White said.