The Agency Projects has been continuing to hand-select premium projects with quality developers and builders. We’re seeing a good level of transaction activity across the Eastern seaboard, including Sydney and the Gold Coast.
We’ve sold over $28.5 million of apartments in the last four weeks. Not surprising we are also seeing investors return to the market, motivated by government incentives and strong rental returns. Many of these buyers are adding to their portfolio and we are assisting many of our clients with their second or third property.
Developers with good practices and strong balance sheets that have bought well, continue to be successful. However, they now face the same rising construction and funding costs as homeowners. For an increasing number, progressing a project has become a financial challenge, with profitability, and therefore viability, a concerning factor. Despite the housing shortage, we’ve seen several new developments removed from sale. This has a flow-on effect, as consumers are usually reluctant to buy into a project that may not proceed.
The Agency Projects is delighted to be one of the hand-selected selling agents for Gordon Corp’s “invite only” Riva and Ferretti project, Mantaray, located in one of the most prestigious parts of the Gold Coast.
It offers an international marina with 24 luxurious branded residences. Aimed at the growing demographic of global and local ultra-high-net-worth individuals, it provides them with the opportunity to moor a yacht in front of their residence, as well as access to extras, including a resident-only lounge and a host of exclusive amenities and services. Gordon Corp has appointed Multiplex as builder, providing buyers with experience, quality and confidence.
We’re seeing an extraordinarily strong level of confidence in this high-end luxury market across both established and off-the-plan properties. Buyers in this price bracket are motivated by a scarcity of stock and a fear of missing out and tend to be unaffected by interest rates. If they see value and lifestyle appeal in a property, they tend to take a long-term view. In particular, we’re witnessing high net worth individuals perceive value in the current pricing of key properties in the $8 million to $12 million price bracket. While this may seem expensive, those who have seen many property cycles are seeing value and transacting.
We’ve also seen increasing activity from an emerging group of “active resizers”. These buyers are going from a house to an apartment of a similar size, which is typically less than their current home, and saving by liquidating the capital. Usually, these buyers are pre-downsizers in their 40s, intent on buying a house-sized three to four-bedroom apartment and recouping the financial and lifestyle benefits. They have been particularly prevalent in the Brisbane projects market.