Cautious, cashed up, well researched and willing: Knight Frank boss Andrew Hay's sums up luxury buyer characteristics
Andrew Hay, the London-based Knight Frank head of its global residential division, says his clientele base was typically cautious, but cashed-up and well researched.
He says they are looking investing where their money is safe and where they can get to enjoy.
'There is a lot of money sitting on the wall waiting.
"Buyers are very savvy. They are very price sensitive. And they quickly understand what's quality.
"However, they deliberate longer than they use to," he told Property Observer during a trip to Australia this week.
'The safe haven aspect is the overriding concern," he added. And educational needs drives a lot of initial inquiry.
He suggests as price points come down globally, these buyers are waiting for when they perceive the market is bottoming out particularly the Asian market.
He's noticing a trend of families making multiple purchases in the same location.
Asked the necessary requirements to be in place to instill confidence for buyers, Hay suggests there are "so many confusing messages coming out of the media."
He suggests buyers are needing a bit of certainty.
"There is huge wealth in Asia from emerging economies. China is only beginning to scratch the surface. There is a vast market still to come from China.
"And the whole of the Arab world is in turmoil so huge funds are flowing into Dubai which is being directed towards Malaysia, Indonesia and beginning to look towards Australia."
He said his clientele are looking for legal systems they can trust and a currency they regard as stable.
Since 2007 Knight Frank has produced an authoritative Wealth Report that tracks 4000 people with a wealth collectively totalling more than €40 billion.
The Mark at Sydney's Central Park
Now, all signs point south for this market. A year ago vacancies were near zero but today they’re approaching 5%. Price growth has stopped and, according to Australian Property Monitors’ price graph, has started to dip below the red line.