Post-Covid, New Zealand's housing market has towered over its Australian counterpart, but the Aussies are catching up.
A new report from property site realestate.com.au says housing buying activity in Australia has finally rebounded from the downturn brought on by the pandemic.
Realestate.com.au head of economic research Cameron Kusher says record-low interest rates and huge amounts of government stimulus have led to unprecedented levels of buyer demand following lengthy lockdowns, especially in Melbourne.
“Prices are already increasing and that growth is likely to accelerate without a meaningful rise in the supply of homes for sale.”
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The Australian residential market is now worth A$7.2 trillion, not surprising when you look at the high value sales that regularly dominate property headlines.
The biggest house sale in Australia this year was the A$95 million (NZ$103 million) a gold mining magnate paid for a waterfront mansion with views of the Sydney Harbour Bridge and Opera House.
Houses stand in Sydney's Darling Point against a background of skyscrapers in the city's central business district. Phto / Getty Images
In what is Australia's second most expensive residential sale, “John” Changjin Li scooped up the mansion that had been put on the market by the founders of one of Australia's largest fashion chains.
Other big deals this year include:
- A reported A$35 million for a mansion in Billyard Avenue, Elizabeth Bay, in Sydney, that was once the home of actor Russell Crowe
- A$32 million for a seven-bedroom home at Lindsay Avenue, in Darling Point, Sydney, which was originally built by a nightclub magnate in 2006;
- A$24.5 million for a house on Sydney’s northern beaches bought off of supermodel Jennifer Hawkins.
- A$34 million for a seven-bedroom waterfront home at Vaucluse, Sydney was a handy price jump from when it sold last time in 1988 for A$3.725 million.
- Another Point Piper home sold by Paul McCartney’s former manager Stephen Walmsley Shrimpton went for A$33 million.
- A$25 million for a former AFL star’s Mermaid Beach, Queensland, is reported as the biggest Gold Coast’s biggest deal in a decade while the top Melbourne sale was $21 million for a yet-to-build apartment on the city edge St Kilda Road.
- Another headline sale – in New Zealand at least – was the reported $A6 million netted by former prime minister Sir John Key for their waterfront Sydney apartment – just one day after getting the keys.
By contrast, Auckland’s biggest residential sale this year was for a waterfront home in Westmere formerly owned by Kiwi film director Andrew Adamson. The Herald on Sunday reported that former All Black Ali Williams and Zuru Toys co-founder Anna Mowbray paid $23 million for the house.
Australian real estate heads report outstanding sales results and record-breaking months.
Australian Ray White managing director Dan White told OneRoof: “If anyone had said in April 2020 that we would sell more than A$6 billion of property in November, well no one would have ever dreamed of such a thing let alone say it.
“Australia probably hasn’t had the degree of lift of New Zealand; we’re setting records but it’s not to the same degree. Australia is up 20 percent, but New Zealand is next level.”
Edgewater, in Sydney's Point Piper, sold for A$95 million. Photo / Supplied
House prices have climbed in all their major cities, with record prices set in November in Brisbane, Adelaide, Hobart and Canberra, Sydney and Melbourne’s prices White said there were still soft spots in the Australian market: regional and lifestyle towns were doing much better than inner city apartments and units, which are in oversupply.
“Rents are falling, and investors are not interested,” he said.
Harcourts Australia chief executive Marcus Williams is also seeing the shift to regional “We’re seeing [price] increases in rural and regional places as people realised working from home is easier. They’re looking for lifestyle, particularly in the commuter belt," he said.
He added: “Our group is booming, it’s our best year ever despite Covid. There’s confidence in Australia around the way it was handled, our economy got stronger.
“There’s stock that had been on the market for a while just snapped up, we’re seeing good prices. Auction clearance is in the 80 percent and very significant prices achieved, well above reserve.”
The Sydney home once owned by Russell Crowe sold this year for a reported A$35 million. Photo / Supplied
Williams said expats weren't a factor. “We’re not seeing ex-pats yet, but a strong influx of people moving to Queensland’s Gold Coast and Sunshine Coast for their tree change," he said.
Williams’ New Zealand counterpart, Harcourts managing director Bryan Thomson, said that while Australia had different challenges, “the positive growth and momentum in this part of the world shows that people want to live here”.
Thomson said that it’s not just the “headline numbers, the $8 million or $10 million sales” that should attract attention as every location had enjoyed lifts.
Sir John Key sold his Sydney apartment post-lockdown for NZ$6.4 million. Photo / Supplied
