Stockmarket gains fuel luxury home demand

The rising number of luxury homes hitting the Sydney market is forecast to create a ‘domino effect’ of big ticket sales this year.

Luxury agent Tracy Dixon says the time is right as inquiry levels up to the $10m price range were climbing. Picture: News Regional Media

The rising number of luxury homes hitting the Sydney market, combined with a buyer pool starved for choice, is forecast to create a “domino effect” of big-ticket sales this year.

Strengthening demand for housing has carried over from last year and at the top end has been backed by the rising stockmarket, giving buyers more firepower.

Real estate agents in Sydney’s inner east and north shore suburbs of Rose Bay, Hunters Hill and Mosman are reporting a rise in demand since the new year. A similar story is being told in the trendy and sought-after inner west. But the spark to set the market alight and kick off a “domino effect” will come from big-ticket sales, The Agency national head of sales Thomas McGlynn said.

“The luxury sector is really, ­really driven by people who will make the decision to sell their property if the right property comes to market,” Mr McGlynn said. “In 2018 you saw a lot of generational homes come to market, which meant that they triggered a domino effect of people that ­wanted to get those and then sell.”

Luxury agent Tracey Dixon of McGrath Hunters Hill said the time was right as inquiry levels in the $5m to $10m price range were climbing.

The Australian stockmarket ­increased 20 per cent last year and has risen another 4 per cent in the year to date.

AMP chief economist Shane Oliver said it was not unusual for the stock and property markets to work together, as people with higher levels of wealth feel better off and more inclined to upgrade or invest in bricks and mortar.