Sales of properties over $1 million have surged through 2021

Overall sales volumes are higher in 2021 than in 2020, but property sales have recorded substantial increases at or above $1 million. 

Each week PropTrack counts the number of preliminary sales. Preliminary sales are sales of properties that were listed for sale during the week on realestate.com.au and have been advised to realestate.com.au as sold by the agents. 

We’re currently nearing the end of 2021 and the number of preliminary sales so far this year is 48.8% higher than over the same period in 2020. 

The states with the largest year-on-year increases in cumulative weekly sales so far this year are the Northern Territory (71.9%) and Western Australia (59.9%). The smallest increases having been recorded in Australian Capital Territory (19.3%) and Tasmania (24.4%). 

The increase in sales over the year is significant, however, when we look at properties that sold for $1 million or more, the year-on-year change in cumulative sales is much greater with a 95.8% increase.  

In fact, there’s already been 21% more preliminary sales at or above $1 million in 2021 than there were throughout the entirety of 2020, with sales so far this year higher than all of last year across each state and territory. 

Cumulative weekly sales of properties at or above $1 million so far in 2021 is more than double that of the same period last year in Victoria (124.8%), Queensland (123.0%), South Australia (100.3%), Western Australia (105.0%) Tasmania (136.1%) and Northern Territory (145.5%). 

These trends are also supported by data that tracks the price filters people use on their property searches. Price filter search data shows that 36.1% of all property searches on realestate.com.au during August 2021 were for properties at or above $1 million, up from 30.5% in August 2020. 

Meanwhile, sales of properties priced at or above $3 million have seen an even larger uplift over the past year.  

Although sales of properties at or above $3 million have only accounted for 2% of all preliminary sales so far this year, $3 million-plus sales are currently 126.1% greater than they were at the same time in 2020. There has also already been 36.2% more preliminary sales at this price point this year than there was throughout the whole of 2020. 

Cumulative weekly sales of properties priced at or above $3 million have more than doubled so far this year in New South Wales (125.9%), Victoria (122.4%), Queensland (144.8%) and Western Australia (170.8%).

When you consider that mortgage rates have shifted to historic lows and people are still restricted on how they can spend their money, it is easy to understand why there has been such an increase in sales of properties priced over $1 million. Not to mention, the fact that many people are spending much more time at home, which potentially means they need more space and are more focused on lifestyle, which generally adds extra to the cost of purchasing. 

We would expect that demand for higher priced properties is likely to remain substantial over the coming months, however, thereafter we could see a bit of a slowdown in demand.  

When vaccination targets are reached and lockdowns essentially end, people’s lives will return to some sense of normality. People will be able to go back to the office (if they choose), go out and do the social activities they used to and plan domestic holidays. 

At around the same time, or shortly thereafter, international travel will also return and we suspect these rediscovered freedoms could lead to a slowdown in housing demand and sales of higher priced luxury properties. 

While demand for higher priced homes may ease from current levels, low interest rates have been the major contributor to higher prices and with rates at these levels for the foreseeable future, we can expect to continue to see a heightened number of properties selling for over $1 million. 

This article was originally published on realestate.com.au ‘Sales of properties over $1 million have surged through 2021’