Opportunity in luxury and rightsizing markets

The latest data from REA Group shows the highest enquiry per listing by price has been seen in the $2 to $4 million plus market. A good example of this sector being under supplied was highlighted in the Eastern Suburbs where square metre rates for oversized luxury apartments have recently achieved record values, nearing double comparably located sales rates in a declining market.

The most undersupplied of these sectors appears to be the $3 – $4 million dollar price range with substantially less available stock showing a premium of 13.2 enquiries per listing as opposed to the next best of 11.9 enquiries per listing in the $4 million plus market.

Of all apartment types, 4 bedrooms are the most undersupplied with a premium of 12.1 enquires per listing with 3 bedrooms coming in second at a considerable drop to 9.7 enquires per listing. There is a clear correlation between the size and function of welldesigned luxury apartments that is leading to higher square metre rates being achieved.