As shares go flat, cashed-up buyers look for luxury homes

Greg Brown
The Australian
Saturday, 28 March 2015

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Some of Australia’s most envied homes are set to be sold at bumper prices over the Easter break as cashed-up investors shift their money from the uncertain share market into luxury property.

Sydney homes worth more than $5 million will increase in value by a solid 5 per cent from April through to September, beating the broader market for price growth, forecaster MacroPlan ­declares.

In the more affordable Melbourne luxury market, homes worth more than $3m will have a 3 per cent uplift, but growth in the resource-heavy economies of Perth and Brisbane will be flatter.

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MacroPlan chief economist Jason Anderson said that while buying and selling numbers increased last year, price growth at the luxury end lagged the broader market. This part of the market struggled in the years following the global financial crisis and prices at the beginning of last year were about 10 per cent lower than 2008 levels.

“However, I think that the shackles might come off over the next few weeks,” Mr Anderson said. “There are signs that the sharemarket rally that we had is petering out and there is not as much momentum there and you might get a process where pretty wealthy people start cashing in; it could be a springboard for luxury sales.”

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About the author:

Jason Anderson Chief Economist E: 
Jason Anderson is MacroPlan’s Chief Economist.  Jason joined the MacroPlan team in 2010 after working as a Senior Economist for a Property Market Research Company, and prior to that as a senior researcher with both the private sector and Federal Government.   Jason possesses extensive quantitative and research experience in the fields of residential analysis and commercial property and development.  Jason’s views on the property and development sectors are regularly sought by the national media.  Jason has considerable experience in the analysis and development of the residential development policy environment and has undertaken several major reports for a number of industry associations, designed to achieve productive policy reform.
About MacroPlan: MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities.  Contact Jason Anderson – Chief Economist today to discuss your property research requirements.