Wealthy buyers push prestige house prices up

By Turi Condon, From: The Australian, 11 March 2010

Wealthy buyers push prestige house prices up

By Turi Condon, From: The Australian, March 11, 2010

AUSTRALIA'S most expensive homes are likely to rise in price by 10-15 per cent this year as wealthy locals and overseas buyers hunt for prestigious addresses in a resilient economy, according to researcher RP Data.

The rebounding share market and increased business confidence is underpinning demand for capital city waterfront and other top-end homes, while prestige holiday homes are yet to catch up, senior researcher Cameron Kusher told The Australian.

"You can't underestimate how important the share market is for top-end buyers," he said.

"When they lose half the value of their shares -- as they did in 2008 -- it's no surprise the top end of the market is hit."

Mr Kusher said capital city prestige property values fell 10 per cent during the GFC, while coastal and holiday homes in areas such as Sydney's Palm Beach, Byron Bay on the NSW north coast, Port Douglas in North Queensland and Dunsborough/Eagle Bay in Western Australia's Margaret River region recorded price falls of 20 per cent or more.