By: Staff Reporter
Property prices continue to climb, but it’s not stopping home buyers from splashing out more than $1 million on their dream home.
Loan Market Group said its brokers had seen demand for prestige properties grow by more than 30 per cent over the past 12 months.
The brokerage’s chief operating officer Dean Rushton said more and more home buyers were seeking home loans in excess of $800,000.
“There is strong evidence that the prestige property market is on the move and people are on the hunt for homes worth more than $1 million,” Mr Rushton said.
“Loan Market brokers catering to buyers in the higher end of the property market have also seen an increase in loans of more than $3 million.”
The one percentage point increase in official interest rates from 3.0 per cent to 4.0 per cent over the past six months has not deterred people from seeking to upgrade their properties, according to Mr Rushton.
“Obviously interest rates are coming back up from a near 50 year low so they are well below where they were only two years ago,” he said.
“There is confidence out there about both the direction of the Australian economy and the housing market, which is encouraging those with financial stability to upgrade their homes.
Mr Rushton said tougher lending criteria by the major banks had not affected property upgraders and investors to the same extent as first home buyers.
“People with large amounts of equity in their homes have a track record and are therefore viewed more favourably by lenders,” he said.
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