Expat's $5.4 million Malvern house purchase seen as one European swallow for prestige price growth surge
The recent $5.4 million sale of a Malvern home to an expatriate has a buyer's agent pondering its significance.
David Morrell at Morrel and Koren noted "there’s so much about the top end which is idiosyncratic, but the expressions of interest closing on the Mayfield Avenue home saw a local and an expat go head-to-head.
"At just under $5.4 million, only the expat still stood," he observed on the sale which happened just as the dollar declined to below parity earlier this month.
The reputed sale price was "considerably above where it failed to sell at just over $5 million late last year," Morrell added.
"One-off, or sign of things to come?" he concluded without answer but another question.
"With the AUD faltering, will we see more expats making a move?
"When it was at $1.03, there were agents predicting a surge in expat activity. Didn’t happen. But a falling dollar may prompt some to get off the fence," Morrell said.
Rival agent Mal James says "interest rates and the dropping dollar certainly appear to be accentuating the increased demand at the top end."
"We have had minor but noticeable increases in enquiry from overseas clients," James advised.
On the Mayfield Avenue, Malvern sale James noted the property was on the market quietly late last year and "had a nibble at $5 million" but was not bought.
"As the dollar drops further we are likely to see more cases of expats buying back in to the Australian top end market, pushing prices up still further," he advised.
It last sold in 1999 for $1,275,000 when bought by James and Alison Mighell from Rodney and Althea Syme.
Property Observer notes the property has been bought by Simon Bayley who has previously lived in Malvern. The sale was May 13, the Monday after the Friday night when the A$ for the first time since June, 2012 dropped below parity.
