The Rise of the Luxury Home Market in Perth
There may be only one reason Perth's luxury homes market has expanded during the last few years: location. More than anywhere else in the world, Perth building and developer companies display a knack for sourcing fantastic suburban locations, with large blocks, good weather, scenic views and knockout facilities attracting big dollars. Landscaped parks, gardens and conservation areas sit alongside footpaths, cycle-ways, local stores and public transport services. Outdoor picnic and barbeque facilities are not uncommon, selling a 'certain type' of luxury lifestyle within an estate community of like-minded people.
Tracking the Rise of the Luxury Home Market in Perth
Landgate, Perth's government housing body, tracks the sale prices of houses in Perth Metropolitan and outlying regions. Between 2010 and 2014 the median price of a home in Perth rose from $510,000 to $575,000. At the top end, houses have sold for between $8,000,000 and $16,000,000 year-on-year. There's a healthy turnover of housing stock, with 2010 showing an average 1,500 homes sold per month, and 2014 showing the figure has risen to around 2,000 per month. The value of total sales in the Perth Metropolitan region is approximately $1.3 billion per month.
Areas classified as "WA Country" (by Landgate), show steady, regular increases in price, profits and sales turnover. In 2010, the median sale price was just under $400,000 per month, with 2014 averaging around $410,000. The most significant increase can be seen when viewing total sales figures; in 2010, sales of $230,000,000 per month increased to $320,000,000 by 2014. This is a huge increase in property sales for outlying areas, and shows the impact of the luxury home building 'concept boom' in remote areas of Perth.
Who Buys Luxury Homes in Perth?
To own a luxury home in Perth, the majority of new entrants into this market go for an off-plan deal of some kind. What this involves, is selecting a geographical location that appeals, and choosing a pre-designed architectural plan to suit. Most people who buy luxury homes in Perth are families, seeking their ultimate second home, within a community where it is easy to make friends with similar types of people.
How Does Luxury Home-Building Begin?
Step one, is to purchase a block of land in the area you wish to build. Sites such as realestate.com.au have an excellent up-to-date list of which blocks are up for sale and the size (in square metres). Lots available north of Perth sell for around $300,000 AUD. Blocks are released within stylised developments such as Jindalee's "Eden Beach".
Choosing an Off-Plan Designer Home
Developers initially sell the blocks off in a new area of interest, which is open to fierce competition as hungry buyers vie to snap up the blocks. Once a block is purchased the hard work is done - buyers can shop around for their luxury home building design, or "sit" on the vacant block for a few years and sell it on for a profit. Very soon after all blocks are sold, or near-sold, the designer display home building companies set up showroom houses in the area (or "display homes"), and these are open for all to view. This is the easiest way to secure a luxury build of quality; buying a display home plan you like, and getting the seller company to build it for you.
Places such as Jindalee in the north, and Falcon in the south, (next to Hall's Head, Mandurah Estate) are the latest areas to be developed outside the Perth Metropolitan area, and earmarked for luxury home building. The great Australian dream, to own your own detached home in a lovely community, where the great outdoors is at your fingertips, is still achievable in Perth's outer suburbs. The greatest hallmark of luxury is the fact these developments all offer pristine beach-side access - something hard to find - in today's developed world.