Do you dream of Melbourne’s high-end real estate market? You may have already done this

For apartment buyers, securing a spot in the top 2% costs $1.49 million.

But it takes $6.9million to get into the top 2% of homes in the local government area of ​​Stonnington, which includes the affluent enclaves of Toorak, South Yarra and Malvern.

For Bayside, a waterfront stretch from expensive Brighton to Beaumaris, the elite threshold is $5.84 million. For the city of Melbourne, including Carlton and East Melbourne, it’s $4.73 million, and for Boroondara, home to Hawthorn and Kew, it’s $4.48 million. For vacation homes, the Surf Coast has a threshold of $3.32 million.

“It’s usually beyond the reach of the typical Aussie. That’s well above what you might describe as normal prices that most people can afford to buy,” Lawless said.

“Once you hit the top 2% of the market and above, you’re typically looking at households that have fairly large incomes, or have a history of wealth accumulation or intergenerational trading. [transfer].”

He was optimistic that given enough time, people without family wealth could still buy this type of home, provided they were in the middle of their career, were lucky enough to have made good investments in the over a few real estate cycles and be frugal. .

“But the vast majority of Australians would probably find owning a home of such value to be more fantasy than reality,” he said.

He said the prestige associated with buying in the Mideast or Bay Area neighborhoods can create demand, alongside geographic factors such as water views, proximity to town and schools in demand. . Homes here are often on larger lots, may have more bedrooms, and may have heritage features.

Interest rate movements are less important in high-end markets than the state of stock markets, currency markets, or white-collar job prospects, as buyers may not buy with levels of high debt.

Comparing the ultra high end with the median price in an area can show the wide price range there. Stonnington’s top end is 175% above its median price, while at neighboring Glen Eira the gap is just 88%.

“All the houses in this area [Glen Eira] are going to be high quality, it’s quite expensive, but you don’t hit those extremes of absolute high-end values,” he said.

Marshall White manager Marcus Chiminello said there are several categories of buyers for homes over $7 million in Stonnington: those with exceptional business success, those with generational wealth, those who have owned a property for several years when prices have risen, or those who borrow beyond their means.

Although the $5-10 million market is now slower than last year, the market above $10 million is still strong and there is a shortage of homes for sale, he said. said, while buyer demands have changed since the pandemic.

“Home is vital – it’s more than just a place to eat and sleep, it’s become a sanctuary. It has become a place of work and a place of education,” he said.

“It needs to work more functionally and be more versatile.”

He recently sold the three-bedroom house to 17 Albany Road, Toorak, above its price guide top of $6.85 million to $7.5 million, and said it was comfortable but could have been bought as a land opportunity. He also sold the renovated house built in the 1950s to 5 Cleeve Court, Toorak, for about $6.5 million.

At the top of the ladder, he handled the sale of a $38.5 million Toorak Mansion this king of crypto Ed Craven bought from property developer William Deague, as well as the boss of Chemist Warehouse Sam Gance’s $43.1 million purchase in the same suburb, in collaboration with Michael Gibson of Forbes Global Properties.

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Gibson said buyers in the top 2% of the market included those who had worked hard to succeed as well as people who had gifted financial opportunities.

“In today’s world, it’s easier to achieve success faster than ever, thanks to technology,” he said.

“Some younger people made money at a much younger age than their parents.”

He said the $5 million-plus market remained healthy, despite inventory dwindling in the winter, and demand was strongest for remodeled or new homes.

Gibson’s recent sales closer to the upper 2% mark include the five-bedroom home in 2 Woorigoleen Road, Toorak, marketed as a home with attractive curb appeal but potential to reinvent. It sold for $7.93 million.