In Australia, APRA’s crackdown on lending, along with the royal commission into banking, has played a part in triggering a market downturn with investors and homeowners struggling to secure finance.
Yet it seems those purchasing prime real estate, without a reliance on finance or debt, have continued to do so in the face of weakening market conditions.
In Perth, the volume of prime residential sales priced between $3-10 million has increased by 48.2 per cent in the year to June 2018, highlighting the potential for future price growth on the west coast.
Off the back of a record year, the volume of prime sales in Sydney has pulled back by 22.3 per cent over the year to June 2018 as a knock on from house prices falling by 6.5 per cent in Sydney over the year.
Melbourne’s house prices fell by 3.2 per cent over the year, while Brisbane prices grew 2.2 per cent over the year to September.
Knight Frank head of residential for Australia Sarah Harding said offshore interest in Australian prime residential property had held steady over the past 18 months.
“Australia remains a highly attractive proposition for global wealth, and more recently with the stronger US dollar, money can go much further than one year ago,” Harding said.