Demand for prestige property is high, and this isn’t just in our Northern Gold Coast area; it’s a worldwide trend. So, what is the key deciding factor for high-end buyers in the prestige market? For some, it comes down to value.
It might seem contradictory to look for value in a prestige property (which has that all-important ‘X factor’ that can’t always be quantified), but emotions aside, for many, they remain an asset for investment.
In this article, we look at some of the global trends in luxury real estate and where buyers are looking to get a little more bang for their buck.
Well, it’s all relative. In the prestige property world, with prices staying strong, demand vs supply issues mean that buyers look at their future purchases differently. For some, the value may come in space to grow and put their mark on a prestige property – perhaps it’s the flexibility of adding an additional dwelling or more outdoor space for a growing family.
For others, value comes from life-enhancing features – perhaps it’s the ability to have your own boat accessible from your private dock. Let’s not forget the location, which could be close to schools, shops or restaurants.
In short, it’s less about getting a “steal”, but this doesn’t mean that you can’t find the magic balance of a prestige property that also gives buyers value for money.
We can all imagine those high-ticket locations where prestige property rules – New York & LA in the US, the heart of London, Singapore, Dubai or even Monte Carlo, but with so much demand, buyers are getting creative in where they choose to invest.
For example, in the US, North Carolina, especially in their lyric-famous Blue Ridge Mountain Range, is getting its moment in the prestige spotlight, with high-end buyers finding tempting prices in these areas of spectacular natural beauty that haven’t seen such fast growth in the real estate market in recent years.
Toronto, Phoenix, Northern New Jersey, and even the surprising Tuscany are all locations where buyers flock. Known for scenic views and a bucket-list location for many, surprisingly, Tuscany home prices have declined for the past ten years. Now, demand is seeing an increase with some great value prestige properties that may not be quite as polished as their worldwide counterparts, but are still offering a tempting balance of value and prestige.
Prestige buyers haven’t lost confidence or the desire to grow their property portfolios. Still, like many of us, they are considering factors beyond just location – and looking to lifestyle like never before. In San Francisco, real estate prices have soared in recent years, with it being the go-to location for anyone working in tech. However, in a reversal of this trend, prices are in decline as fed-up residents look elsewhere in pursuit of less crime and better work-life balance and space. The significant factor here? The virtual office, meaning many are longer need to be tied to a physical work location. As such, new prestige hotspots are emerging, so keep an eye on the up-and-coming value-rich prestige areas as they evolve over the next 18 months.
Do you know what your prestige home could be worth? Get in touch with Mercer & Cooper, your Gold Coast prestige property experts.
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