How the luxury property market has been impacted by lockdowns

How the luxury property market has been impacted by lockdowns words by Georgina Zeneldin Whether you are an investor or an owner in Southbank and surrounds’ luxury property market, it is important to note that the luxury market has stood the test of time during this pandemic when the economy was thrown into a precarious position because of the lockdowns. The robust luxury property sector has not just remained unharmed, but it has managed to surge ahead. However, what we are finding is that listings for these luxury properties are thin on the ground. As an area specialist I always get asked: Is it a good time to sell? Owners of these luxury properties are in two minds and feel that due to the economic uncertainty and lockdowns they don’t want to expose their property for sale in the fear it may sit on the market for too long and become stale. However, as a specialist in the field it is quite contrary to that. If anything, we are finding that luxury properties on the market are sitting for a lot less and are getting a few applications of interest on it. So as an owner who is looking to sell their property, I would say now would be a great idea to start the process and not wait. Why is it a good time to invest? While many are sceptical because of the rising prices, there is a considerable segment that is not holding back and is making massive investments in luxury real estate. The sudden price rise has been the fastest in the past three decades and will continue as per the reports and industry forecasts. Experts are also suggesting that this is the perfect time for investing as the sector is booming and the prices are all set to soar further. Thus, waiting is not going to make things better for investors. At the beginning of the pandemic, a lot of people took the decision to wait since they thought the real estate sector would crash. However, they are now regretting their decision as the prices have gone up. Even if the fast growth ceases after a few years, it will not bring the prices down. Thus, it makes more sense to invest now and gain a better yield than waiting. Which brings me to another important point. The reason for the surge in prices is that the wealthy are accumulating a significant amount of savings during the pandemic as they have not been able to travel abroad or spend on other luxuries. Also, the low-interest rates have made the investment even more alluring. In addition, speculations are arising that when the borders are opened for international travellers, the prices will go up exponentially. Australia is being viewed as a safe haven by many ultra-rich expats and foreign investors who want to purchase prime property. To conclude, it is evident that luxury property for sale in Southbank and surrounding areas has been experiencing a surge in demand, and thus, the price rise is here to stay. So, waiting for a slump is not the right move in the current circumstances. It is the perfect time to invest and leverage positive economic growth, capital gains, and low-interest rates •