Spotlight on Sydney prestige properties – what’s going on?
Buying a prestige property isn't quite as easy as just searching through a real estate website with plenty of options.
When you're spending more than $5 million on a home, be it a luxury penthouse apartment or a mansion in a fabulous suburb such as Vaucluse on the east coast of Sydney, you want to make completely sure that you'll love it when you move in. It'd also be nice to not have to make too many changes when you do finally step over the threshold with the keys!
There's likely a long list of specifications that you'd like to see in your home, and as time is money, you don't want to be wasting weekends going to view a property that doesn't have absolutely everything that is written down on that list.
But how do you make this fantasy a reality? The process will start by making sure you're only looking at properties that will fit what you want to see, and that's where the services of a buyer's agent come in handy. Being a professional in the industry, they'll have a finger on the pulse of what's happening around the country, and know the type of homes that would appeal to you and your family.
At the moment, however, there's a lack of supply in the prestige property market around the country.
How many prestige homes are for sale?
According to SQM Research, the number of homes that were listed for sale in May reached just 81 for the suburb of Vaucluse, which is a significant drop on the 151 from October 2010. People who own prestige homes aren't seeing the sort of market activity that's allowing them to move into something bigger or better, so they aren't prepared to list their own homes. This is creating something of a bottleneck at the higher end of the property-buying landscape, and it's going to make buying your own prestige home a lot more difficult.
That will only be the case, however, if you decide to go through that journey by yourself.
Hiring the services of a buyer's agent from Cohen Handler will allow you access, through their relationships and industry connections, to a wide range of off-market houses and apartments. All you'll have to do is say "buy my house" to one of the team, and you'll be in your beautiful new home in no time at all.
SQM Research points out far more drastic data regarding the number of listed homes in these prestige suburbs that will direct buyers toward the services of a buyer's agent as well.
Buying in these popular regions won't be easy, with competition high and the number of available homes low.
In Point Piper, which lies a little closer to the CBD than Vaucluse, 55 properties in total were listed in May this year, which is down on the 130 from October 2010 – an even greater fall in the number of listings than in the previous example. Manly, famous for its beaches and surfing culture, is another hotspot for modern buyers, and the listings in this suburb for May were just 38, most of which were apartments. Six years ago, that figure was 203.
Buying in these popular regions won't be easy, with competition high and the number of available homes low. Compared to the figures from 2010, this data is down a lot, and shows the need for serious buyers to take every step possible that will give them a fighting chance.
Is using a buyer's agent the right choice?
Spending $5 million and above on a single piece of property is a large outlay, and that sort of money demands a certain level of excellence. A buyer's agent will be able to provide that for you.
Data collated by UBank and presented by Canstar finds that 36 per cent of South Australian residents spent more than six months looking for a property to buy, while 9 per cent of that group spent longer than two years. That's a ludicrous amount of time to spend on a single purchase, no matter how much money you're putting into it.
With a buyer's agent by your side, you can expect to have a number of homes available to view and seriously inspect within eight weeks, and rest assured that these will all meet any specifications that you set out, to ensure you aren't wasting any of your valuable time.
You'll also have the chance to save a bit of money if you use a buyer's agent, as they will negotiate on your behalf to secure a home for the best possible price. The CoreLogic RP Data Pain and Gain Report from December 2015 shows how many homes were sold for a profit, and those sold for a loss.
In Sydney, just 2 per cent lost money, and Melbourne wasn't far behind with 2.5 per cent. If you use a buyer's agent, they will do their utmost to purchase the perfect? home on your behalf within that 2 per cent bracket – and there won't be any crooked dealings, as a buyer's agent is legally required to work in the client's favour.
A buyer's agent is your best bet for securing a prestige property for a great price in a short space of time. Contact Cohen Handler today.