If you haven't sold a property in Sydney for some time, you may not fully understand how the market is performing. A specialist luxury real estate agent can help you navigate the complexities of the market and will provide insight that can help you negotiate the best price. Nonetheless, if you're unsure whether you can or should try to sell your luxury home now, here are five things you should know about the current luxury property market in Sydney.
Sydney has one of the strongest luxury property markets in the world
Over recent years, property prices in Sydney have shown very healthy growth, and the luxury home market has set exciting trends. In fact, the top three cities globally for luxury properties are Vancouver, Miami and Sydney.
Indeed, from June 2014 to June 2015 luxury property in Sydney saw growth of 10.3 percent. Melbourne wasn't far behind (at 7.9 percent), but low interest rates and a great quality of life in the home of the Opera House attract wealthy buyers from around the world. As such, this is probably a great time to sell your property.
It still takes longer to sell a luxury home
While the luxury market is buoyant, interested parties still don't often rush to sign the cheque, so it's important to set yourself realistic expectations. What's more, while your property may fetch millions, luxury buyers are still looking for a bargain, so you should prepare yourself to haggle.
Certain Sydney suburbs outperform all the others. For example, the median property prices in Point Piper, Watson's Bay and Centennial Park are higher than anywhere else in the country. Nonetheless, other suburbs still rely on discounts. For example, sellers in Vaucluse need to discount by around 8.7 percent - an issue that also affects luxury property sellers.
Make sure you understand your suburb and plan your sale realistically based on demand in the area.
You should use multiple marketing channels
You need to take steps to make sure your property stands out against the others on the Sydney market (and elsewhere in Australia). Don't rely on one marketing channel, or you may miss a large chunk of potential buyers.
Channels to consider include:
- Specialist press advertising
- Outdoor and billboards
- Paid search
- Email marketing
Look for an agent who understands and specialises in these marketing channels. He or she can help you navigate any hurdles that will delay your advert hitting the market. Consider the cost of these activities when you negotiate a fee with your agent.
You may still need to offer an incentive
Some people wrongly believe that luxury buyers are immune to the lure of an incentive, but this is not always the case. Even if somebody is willing to pay millions, incentives can still clinch the deal.
For example, if you want to sell a luxury waterside apartment, your buyer may plan to keep his or her boat near the property. Find out what fees this could attract and decide if it is useful to pay for the first twelve months up front as an incentive to an interested buyer.
Foreign investors often also want convenience, and some buyers may like the idea that the sale price includes certain items of furniture. Work out where you can compromise to seal the deal quickly and for the right price.
Foreign investors want property in Sydney
Many believe people that foreign buyers are driving rapid price inflation in Sydney. Chinese buyers account for around a quarter of all new home sales in Sydney, and foreign buyers also show a keen interest in luxury homes. Despite government changes to levy extra fees on foreign investors, sellers should still strongly consider this group of buyers.
Find a real estate agent with established links to foreign communities in your suburb. He or she will often have a waiting list of interested investors, which could drastically cut the time it takes to sell your property. You should also consider advertising overseas. Many luxury real estate agents already have relationships with foreign magazines and newspapers to advertise properties in their portfolio.
The Sydney luxury home market is booming. If you are unsure whether you should sell your home, talk to a specialist real estate agent from a company like Aus Property Professionals for more advice.