Several high-profile residential property deals took place in Australia during 2017, despite signs pointing to a slowdown in the real estate industry.
Industry analysts expect home prices to fall in 2018. This would be good news for buyers, especially those who are planning to acquire their first home. However, the overall market would likely remain favourable for property owners, given the transaction values for certain prized assets.
The $18.48-million deal for a house at Leopard Street in Brisbane set a new record for a home purchase for Queensland. Mining tycoon Gina Rinehart held the previous record, after buying a riverfront home in Hawthorne for $14 million in late 2014.
In Melbourne, a five-bedroom house built in the 1920s reportedly changed ownership for nearly $40 million. It unseated the previous record holder in 2016 when Besen family sold a mansion in Toorak for more than $26 million. Sydney posted the most expensive deal among the three cities. Atlassian co-founder Scott Farquhar and his wife, Kim Jackson, made headlines after buying a 7,000-square-metre home in Point Piper on Sydney Harbour for $71 million.
Whilst experts said that home prices may fall next year, the transactions in Brisbane, Melbourne and Sydney indicated that not all homes will depreciate in value. If you live outside these cities, a simple way to increase the value of your house involves home improvements. A fresh coat of paint or new sliding glass door systems can help you raise your asking price.
However, sellers should be realistic next year, as the Australian Prudential Regulation Authority’s stricter lending guidelines will primarily affect the demand from investors.
Market assumptions only serve as a guide for the real estate industry. Familiarise yourself with trends as 2018 unfolds, as these will determine whether it is a good time to buy or sell a house.