While the bottom end of the property market is enjoying a new lease of life, the mid-range and top end is struggling as buyers are cautious about economic futures. Sydney's prestige property market is grinding to a fast halt, because people who previously made up the typical high end consumer and would have bought a new home before selling their old one,
are now too nervous
Successive interest rate cuts and boosts to the First Home Owner's grant have helped the lower end of the market to stay healthy, no such moves will help the top end.
Agent Martin Farah
from NG Farah blames stockmarket crash and lack of bonuses, and says these factors have had a dramatic effect
on confidence at the top end of the property market,
Fujitsu Consulting managing director Martin North said top-end
properties that were selling were doing so at a loss.
"We're underestimating the unemployment risk and because incomes are so far down, because of no bonuses, or low bonuses and because the stock market is down and investments are down," he said. "That's all going to have a very dampening effect."
Other agents report that properties were still selling, but buyers had no sense of urgency.
Vaucluse is now among the top suburbs in Sydney under mortgage stress.
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