News

Market Report July 2016

By Ian Campbell

Record Returns for Sydney’s High-end Homes:

Investors paying top dollar for luxury apartments and mansions in Sydney and Melbourne can rest easy – the latest research shows Australian high-end homes rate among the best in the world for investment returns.

Prestige property prices in Sydney and Melbourne have risen at more than twice the rate of luxury homes in Monaco, Beijing and Singapore in the past year and at more than five times that of homes in London, New York, Rome and Geneva.

The Australian newspaper report said Property group Knight Frank recorded gains of more than 12 per cent in Sydney and Melbourne’s prestige market in the past year. This places them in third and fourth place behind Vancouver and Shanghai for the fastest appreciating luxury property.

“Australasia proved the world’s hottest world region, with prices rising 12 per cent on average despite the introduction of a new fee for foreign buyers,” Knight Frank research head Kate Everett-Allen said.

New Strata Laws 

A date has finally been set for the implementation of the much anticipated strata reforms – November 30, 2016.

Among more than 90 changes to strata laws, the most controversial means that 75 per cent of owners in apartment blocks will be able to sell the entire building to developers, regardless of objections from the other 25%.

The changes follow more than 5 years and 3000 submissions, with spokesperson for Better Regulation and Innovation Minister Victor Dominello calling them “once-in-a-generation reforms” that are “modern, flexible and reflect 21st century strata living”.

Among the changes to the Act include a default option which allows pets in new buildings unless they are excluded. Existing strata schemes can elect to follow the new ruling, says a Fairfax Media report.

Parking inspectors will be able to book commuters who clog up strata car parks, smokers may be stopped even inside their own units if it affects others and there will be limits on the number of proxy voters any one person can hold.

Reforms which allow for a building defects bond will be introduced in July next year. This will force developers to set aside 2 per cent of the cost of buildings to pay for faults uncovered in the first two years.

Potts Point in Popular Demand

Potts Point is hot property right now with two new local developments – The Hensley on Bayswater Road and The Omnia on Victoria Street – both selling 70 per cent on launch day. Established apartments are also in demand in both Potts Point and neighbouring suburbs. With stocks levels and interest rates both at extremely low levels, now is an ideal time to sell. If you would like an appraisal of what your property is worth in today’s strong market, speak to one of our helpful sales team on 9331 9600.

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