$100m each: Demand for luxury homes hits new highs

Luxe Listings Sydney star and leading real estate agent Monika says demand for luxury homes has never been higher.

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Exit the rabbit, enter the dragon.

The real estate stars have aligned to make this year one to watch according to the Chinese zodiac coupled with a recent upswing in international demand. Cashed up buyers are approaching the lunar new year with very deep pockets weighed down with as much as $100 million each.

And while these ultra high net worth individuals (UHNWIs) are seeking prime property, the impending year of the “wood” dragon also suggests a fixer upper could be a savvy move.

Monika Tu, founder of agency Black Diamondz, said as the new lunar approaches, the desire for Australian real estate is unparalleled.

“Demand for luxury property is really high at the moment, perhaps higher than ever. We’ve had so many inquiries from people wanting to come before and during the Chinese New Year to buy property,” she said.

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Buyers are looking for homes with double figure, in the millions, price tags.

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The Luxe Listings Sydney personality said the supply versus demand equation is currently so imbalanced she recently posted a call out for luxury properties on social media. The post announced that Ms Tu had 15 qualified buyers who are house hunting within the $8 million to $45 million price points, however the bar is quickly rising.

“Since that post last week I’ve had an inquiry for a buyer wanting to spend up to $65 million and now there are two buyers looking with $100 million each,” she added.

The number of ultra high net worth individuals in Australia – defined as those with a net wealth of more than US$30 million (AUD$45 million) – is set to grow astronomically in the near future due to the accumulating wealth of locals and new cashed up arrivals. The Wealthy Report 2023 by Knight Frank stated that our UHNWI population will jump by 40.9 per cent over the five years between 17,456 in 2022 to 24,589 by 2027.

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While not all Ms Tu’s buyers are Chinese, she said the majority of purchasers are originally from mainland China with some originating from Vietnam or Singapore. All, however, have temporary or permanent residency as required by the Foreign Investment Review Board (FIRB).

Sydney’s eastern suburbs is in hot demand.

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“The one qualification they must have is the right kind of visa. They have to be a resident. If you’re not, you cannot buy. Many have been permanent resident visa holders in Australia, but they didn’t always live here. Now they’ve decided to move to Australia because there are less opportunities for them in China,” she said, adding that most requests are for homes in Sydney’s eastern suburbs as well as the lower and upper north shore.

“Demand is mostly for something on the waterfront with a jetty, but if we cannot find them that then they definitely want a…