A sharp rise in activity among prestige homebuyers is reflective of growing confidence in the top half of the Perth property market, according to Realmark managing director John Percudani.
Mr Percudani, whose group markets a large portfolio of high-end properties across multiple suburbs, said Realmark agents were experiencing an increase in the number of enquiries and viewings of homes worth in excess of $1 million.
“The overwhelming feedback we’re receiving from our agents, both north and south of the river, is that they’re getting significantly more enquires about prestige homes in the last few weeks than they have for a long time,” Mr Percudani said.
“It’s a trend evidenced not only by the volume of verbal and online enquires we’re receiving, but also by the number of people attending viewings and home opens, especially of properties new to market .”
According to Mr Percudani, activity is being driven by a heightened number of “trade-up buyers” across all market sectors who’re drawing confidence from the long-term stability of low interest rates.
“Buyers are demonstrating a lot more confidence in the market and consequently we’re seeing more people considering their options in respect to trade up buying,” he said.
“Typically, the prestige sector is the hardest hit when buyer confidence falls. So the fact we’re seeing such a strong number of enquires is another sign that confidence is growing.
“It all helps the push towards a healthy, dynamic and balanced local property market.”
Despite the rise in enquiries, sales transactions of prestige properties are yet to match the trend. Mr Percudani believes this is due to a lack of supply, which is still catching up to rising demand.
“Even though demand and enquiries have increased sharply, the supply and diversity of product is lagging,” he said.
“It’s a pattern that is reasonably common in this sector because it generally takes the prestige market longer to react to more favourable demand. However, I’m confident that over the next six months, more supply will come online and we’ll see a corresponding rise in sales.
“It also provides an advantage for sellers who act on this opportunity ahead of the supply curve being addressed because they can use the current conditions to maximise their sale outcome.”