As domestic and international pressure continues, Australia's high-end real estate market continues to fall in international rankings.
According to the Knight Frank Global cities Index (First Global Cities Index), released on Wednesday, the top 5% of Australia's major urban real estate market has lost momentum in the past year, in the past quarter. The index recorded a decline of as much as 3% in some state cities.
Sydney and Melbourne fell from 9th to 15th and 17th, respectively. Their growth also fell from 8.7 percent to 5.7 percent, and from 8.3 percent to 5.4 percent.
Siselski (Michelle Ciesielski), head of Australian housing research, said the cities were gradually growing sustainably after years of rapid growth.
"We had very strong, even double-digit growth in Sydney and Melbourne for a few years," she said. "compared with the mainstream market, it has performed quite well."
Government's intervention in the property market has had the desired cooling effect, but Mr. Sisilski said some of the measures have weakened Australia's global competitiveness.
"tax policies for foreign investors will make us less competitive globally." She said.
Sydney and Melbourne are likely to return to the rankings in the next 12 months, thanks to similar cooling measures already in place in other countries, he added.
Maluf (Bill Malouf), director of LJ Hooker Double Bay, said it was not surprising that growth was slowing in bustling eastern cities.
"there's no softening, there's-and it's comprehensive," he said. "it's the law, the bank's resistance."
Maluf said that while buyers became more cautious about their money, 5 percent of homes at the top of the housing pyramid were in short supply, preventing prices from falling.
Marshall White Bayside's Ron (Justin Long) agrees that wealthy buyers will be more picky.
"in places like Toorak, where most of the value is on the land, you need to have a very good house," he said. "some [sold] houses are refurbished, but if we're talking about super-high-end markets, it's either new, or there's no real estate for sale at all."
Mr. long also said growth had slowed because buyers were less willing to pay a few more percentage points to lock in the potential value of the house at the time of settlement, but were only willing to pay "today's price."
Maluf said the decline in demand from Asian countries had aroused strong interest among Australian diaspora and local buyers.
"people between the ages of 30 and 40 are very rich, especially in the technology industry."
Brisbane and Perth both fell in the rankings, albeit on a smaller scale. They dropped 20 and 23 from 19th and 21st, respectively. Their growth rate is relatively stable, at about 3%.
Luxury housing agents and NGU real estate director Julie (Emil Juresic) said Brisbane's market was stable compared with the volatile southern state capital.
"one thing is that the market is very solid now. The growth we have seen in the past five years has ceased to occur. The housing market will not fall, but it will not rise again. "
High-net-worth individuals and foreign investors are leaving the apartment rental game and concentrating their wealth on luxury homes as a result of an oversupply, Mr. Julich said. We are not in another boom, we are in a controlled market, this is the best market.