A leading Brisbane buyers’ agent said the city’s high-end prestige market had “come of age” in 2021, with cashed-up buyers making their mark.
Belinda Shields, senior buyers’ agent with PS Property Advisory, said it wasn’t just the sheer number of transactions that had made 2021 a watershed year for the sector.
“One of the most striking elements is that far more Brisbane locals are purchasing at this price level. High-end prestige is no longer just within the realm of interstate, expat and foreign national buyers in Brisbane,” she said.
Ms Shields said in the calendar year 2019, Brisbane recorded 11 sales priced between $5 million and $20 million. That number doubled to 22 transactions in 2020.
“Now for 2021 to date, we’ve seen 38 sales in this price bracket. That’s almost double last year and an astounding three-and-a-half times what occurred in 2019 – and the year isn’t over yet,” she said.
“This incredible outcome shows the city’s market, and its local buyers, have matured.
They’re confident of spending significant money in the property market.”
Ms Shields said one of her agent contacts believed it was easier to sell a property between $10 million and $20 million at present than it was to sell one priced between $3 million and $5 million because of the abundance of cashed-up buyers around.
“I recently purchased a prestige property in Indooroopilly, breaking all previous records, for a Brisbane-based family. We were one of four competing bids, two of whom were local and two from out of town. That property sold within seven days of being listed,” she said.
“Our Brisbane high-end prestige market has traditionally been ruled by buyers from across the border, as well as returning expats or foreign nationals. But locals are now increasingly meeting the market.
“They’ve grown accustomed to this new upper-level price point and have become a competitive force in ultra-luxe real estate.”
Ms Shields said the market had breached a psychological barrier with plenty of sales exceeding $10 million this year.
“This is a market sector where buyers are often not price sensitive. If they find a property that meets their wants and needs, then they’ll do what it takes to secure it,” she said.
Ms Shields said despite signs of cooling markets in Sydney and Melbourne, she sees nothing but upside for Brisbane’s prestige sector.
“We are the current go-to market for high-net worth buyers. As borders come down, we’ll see an influx of these ultraluxe buyers. Interstate and overseas migration is set to skyrocket, and our upper end will lift further,” she said.
For a long time, it was considered Brisbane didn’t have the calibre of stock to justify super prestige prices, however, a combination of factors has remedied this, Ms Shields said.
“Queensland’s status as a relatively COVID-free jurisdiction has improved our standing both nationally and internationally among buyers,” she said.
“In addition, low interest rates have bolstered business confidence – a source that feeds directly into the hip pockets of these high-net-worth buyers.
“There’s also no denying the 2032 Olympic announcement, and the inevitable international spotlight it will shine on our city, has boosted our cache with buyers.”