Conditions Brewing for Increased Property Prices
Fashion designer Alannah Hill recently sold her 19th century South Yarra property at auction and it went for $4.365 million.
The grand home in the Domain Precinct of South Yarra, Melbourne, attracted five bidders who were not put off by the way the property faced onto busy Toorak Road or was backed by units.
Auctioneer Marcus Chiminello, Director of Marshall White, said the bidding was both vibrant and competitive. However, Hill initially paid $4.3 million for the property in 2010. While there has been much talk of improving markets, the designer only saw a marginal amount of profit on the property.
Although the Australian housing market has been looking up recently, it appears that there have only been limited gains.
Andrew Wilson of Australian Property Monitors said, “It’s a run, not a boom.”
Until the Reserve Bank starts to increase interest rates, most analysts predict that only single-digit annual house price growth will be seen in 2013, 2014 and 2015.