Covid-Driven Home Buying Drives Global Home Prices Up

The ongoing boom in home buying during the Covid-19 pandemic pushed average property prices up 9.2% in the second quarter of the year, according to Knight Frank’s Global House Price Index, released Tuesday.

About one-third of markets, or 18 countries, saw double-digit increases in the second quarter, according to the report, which looked at 55 countries and territories. That’s up from seven at the same time in 2020 and 13 in the first three months of this year.

The index is rising faster than it has since the first quarter of 2005, well before the global financial crisis of 2008-09, according to Knight Frank, although not every region is experiencing a boom.

“A breakdown by developed and developing economies, however, reveals a more nuanced picture,” Kate Everett-Allen, Knight Frank’s head of international residential research, said in the report. “Ten of the world’s developed economies averaged price growth of 12% in the 12 months to June, double that seen in key developing markets (4.7%).”

Turkey remained at the top of the index, registering a 29.2% year-over-year rise in average home prices in the second quarter, the data showed. New Zealand ranked second, where prices jumped nearly 26% and the U.S. had the third strongest growth at 18.6%.

Australia (16.4%), Canada (16%) and Russia (14.4%) also made the top 10, the report found. Indeed, Australia recorded its highest rate of annual price growth since 2003.

“Only two markets saw prices decline in the year to June 2021—India and Spain,” Ms. Everett-Allen said. “This is the lowest proportion of markets registering a decline in prices since the Global House Price Index commenced in 2008.”

Spain saw a 0.9% year-over-year fall in average prices in the second quarter, the index showed. In India, they were down 0.5% in the same time period.

Despite the overall gains, some markets may be close to peaking, according to Knight Frank.

“In the U.S., mortgage applications have dipped and the share of households thinking now is a good time to buy hit a decade low of 28% in June,” Ms. Everett-Allen continued in the report. “The prospect of interest rate rises in markets such as New Zealand, the U.S. and the U.K. is also likely to weigh on buyer sentiment in the medium term. But conversely, recent tighter restrictions in South East Asia, New Zealand and Australia may yet spark renewed activity as lockdowns shine a light on homes and lifestyles.”

Tucked away in Byron Bay’s coveted hinterland, Whimsy Farm is a traditional rural homestead surrounded by more than 16ha of lush fertile grounds with equestrian facilities and a host of whimsical additions including a fairytale-inspired maze.

Just listed with Sotheby’s International Realty Byron Bay, agents Denzil Lloyd and Will Phillips are running an expressions of interest campaign on the glamorous getaway with a price guide of $5.25 million to $5.75 million.

The romantic estate in Federal, 25 kms from Byron Bay dates back more than a century, but has been meticulously renovated by its current owners to attain modern day dream home status.

Back in 2016, the enviable property even featured on Foxtel’s short-lived reality TV show I Own Australia’s Best Home. The picturesque parcel has also been appreciated by location scouts and has appeared in a long list of fashion brand and magazine shoots such as Country Style and Queensland Homes.

Owner Melinda Boundy, founder of boutique interiors firm Melinda Boundy Design, was instrumental in reviving the historic Federal homestead. She has described the rural property as a “a respite from the world” where she and her husband have raised their two sons over the past decade.

“I brought my boys down 10 years ago to nurture their creativity, their boyhood,” Boundy said in a recent Instagram post announcing the impending sale.

“We found our farm with its double-storey treehouse and 40 acres the perfect place for two young boys to thrive.”

In addition to hiring out the estate for formal events, Boundy said the family had celebrated several milestones at the address.

“Many parties, sleepovers, friends staying and events have been held [here]. It has seen the filming of a TV show or two, music videos, location shoots and weddings,” she added.

“Now it’s time to pass the baton to another family to share the magic and wonderment of this beautiful compound.”

Lloyd agreed that the listing is a magical estate, ripe for the picking.

“It’s a wonderland. There’s the maze, but it’s also got the treehouse, teepee, dams, beautiful established veggie gardens and it’s perfect for those who love horse riding,” Mr Lloyd said.

“It really is an oasis with plenty of classical charm as well. It’s not an ostentatious home; it’s an original Queenslander from 1910.”

Living up to its storybook name, Whimsy Farm is home to a preserved traditional Queenslander residence with five bedrooms, plus a freestanding guest cottage. There is also a separate pool house and a combined shed or office on site, all capturing scenic hinterland views.

The main single-storey residence has a choice of entertaining spaces inside and out as well as bedrooms opening to private alfresco areas. A grand kitchen and the large living room both open to a vast terrace and pool area.

In the primary bedrooms suite there is a bay window overlooking the natural surrounds, an ensuite with double vanities, and out on the covered deck an outdoor bathtub is an idyllic spot for soaking under the stars.

The playful property has also operated as a holiday rental and offers up unique bonus features including a solar-heated semi circle pool, a double-storey treehouse, a teepee, horse stables, paddocks and a an Olympic-sized dressage arena.

A true tree change destination, the Federal address is home to 10 acres of regenerated forest, eight water tanks, two lagoons, extensive raised veggie gardens and a citrus orchard.

It is conveniently located a scenic 30-minute drive to Byron Bay and 20 minutes to Bangalow.

Whimsy Farm at 711 Federal Dr, Federal is listed through Sotheby’s International Realty Byron Bay through an expressions of interest campaign closing February 20, 5pm.

Covid-Driven Home Buying Drives Global Home Prices Up

Australia recorded its highest rate of annual price growth since 2003, according to Knight Frank.

Whimsy Farm is a playful period estate positioned in Byron Bay’s picturesque hinterland.