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Melbourne’s High-end Property Market: Luxury House Sales Soaring Despite Pandemic

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The real estate market in Melbourne, Australia has been on a roller coaster ride over the past few years. In 2020, the COVID-19 pandemic had a significant impact on property sales, but the luxury housing market proved to be more resilient than many had expected. Despite the pandemic’s ongoing challenges, luxury house sales in Melbourne are soaring, and the trend shows no signs of slowing down.

While the pandemic initially caused a slowdown in property sales in Melbourne, the luxury segment of the market quickly rebounded. With international and interstate travel restrictions in place, many wealthy Australians are investing in high-end properties in the city. Additionally, historically low-interest rates and a strong demand for larger homes have boosted the sales of luxury properties.

Melbourne’s High-End Property Market: A Closer Look

What Qualifies as Luxury Property in Melbourne?

Luxury properties are typically defined as homes that are priced above the median house price in a particular area. In Melbourne, the median house price was AUD 908,517 as of March 2021. A property priced at double or triple the median would, therefore, qualify as luxury.

Why is Melbourne’s Luxury Property Market Booming?

Despite the pandemic’s impact, Melbourne has continued to attract wealthy buyers looking for luxury property investments. Additionally, low-interest rates, improved lending conditions, and a new trend towards working from home have all contributed to the surge in demand for luxury properties.

Factors Driving the Melbourne Luxury House Sales

International Travel Restrictions

Due to the COVID-19 pandemic, international borders have been closed with only essential travel allowed. This has led to a rise in domestic tourism, with many wealthy Australians choosing to invest in luxury properties instead of traveling overseas. With Melbourne’s reputation as a cultural hub and established luxury property market, it has become an ideal choice for many individuals looking for a secure investment option.

Low-Interest Rates

Historically low-interest rates have led many wealthy individuals to take advantage of the property market. With low borrowing costs, investors are more inclined to purchase high-end properties as an investment opportunity. Furthermore, high-profile areas like Melbourne have seen a surge in demand from wealthy buyers seeking higher returns on their investment.

Demand for Larger Homes

Thanks to remote working arrangements and current travel restrictions, the demand for larger homes has soared. People are investing in homes that offer more space and amenities like home offices, gyms, and outdoor areas for relaxation. The trend towards larger homes has had a significant impact on the high-end property market in Melbourne, with more buyers looking for luxury properties that offer spacious living arrangements.

Where to Buy Luxury Property in Melbourne

While there are many areas to consider when buying luxury property in Melbourne, some of the most popular include:

South Yarra

This inner-city suburb is a hotspot for young professionals and families looking for luxury living options. It has an excellent selection of high-end homes, apartments, and townhouses, making it an ideal location for luxury property buyers.

Toorak

Toorak is one of the most prestigious suburbs in Melbourne, and it’s no surprise that it’s a prime location for luxury property buyers. It features expansive homes surrounded by lush gardens, tree-lined streets, and exclusive private schools.

Brighton

Brighton is known for its pristine beaches, and it’s also home to some of Melbourne’s most luxurious properties. From modern architectural marvels to classic Victorian homes, this suburb offers a range of high-end properties for discerning buyers.

Tips for Buying Luxury Property in Melbourne

Do your research.

Before making any investment, it’s essential to research the area you’re interested in thoroughly. Look at key factors like crime rates, access to amenities, and local market trends. This will help you make an informed decision and avoid costly mistakes.

Consider working with a real estate agent who specializes in the luxury market.

A real estate agent who has experience handling luxury properties can provide valuable insight and connect you with the right opportunities. Ensure that you get referrals from trusted sources and check the agent’s credentials before engaging them.

Pay attention to the property’s features.

When buying luxury property, it’s essential to pay close attention to the features that matter most to you. Consider factors like the home’s design, landscaping, outdoor living spaces, and technology systems to determine whether they suit your lifestyle and preferences.

The Future of Melbourne’s High-end Property Market

Despite the ongoing challenges presented by the COVID-19 pandemic, Melbourne’s high-end property market remains robust. The city’s reputation as a cultural and business hub, combined with low-interest rates and demand for larger homes, will continue to drive the luxury property market in 2021 and beyond. For those looking to take advantage of the current market, it’s important to do your research, work with a trusted real estate agent, and consider your lifestyle preferences before making any investment decisions.

FAQs

What is the median house price in Melbourne?

The median house price in Melbourne was AUD 908,517 as of March 2021.

Where are the best areas to buy luxury property in Melbourne?

Some of the best areas to buy luxury property in Melbourne include South Yarra, Toorak, and Brighton.

What factors are driving the surge in luxury house sales in Melbourne?

International travel restrictions, low-interest rates, and demand for larger homes are some of the key drivers fueling the luxury house sales in Melbourne.

Where can I find more information on buying a house in Melbourne?

Check out this Guide to Buying a House in Melbourne for more information on buying a house in Melbourne, including tips for first-time buyers and guidance on getting a mortgage.

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