Hermès Handbags Take the Spotlight at Auctions
It’s a new season for Hermès handbags at auctions.
2 min
Sotheby’s and Christie’s are offering a variety of purses online this month on the heels of a record-sale of a Hermès Himalaya Kelly handbag last week.
A Hermès Himalaya Kelly sold for €352,800 (US$353,400) at a Sotheby’s auction in Paris last week. It set a record for any luxury handbag sold at auction in Europe and the U.S., but fell short of the global record—a Himalaya Retourne Kelly bag, which sold for HK$4 million (US$510,000) last November at Christie’s in Hong Kong.
Touted as the “Holy Grail of handbags,” Hermès Himalaya Kelly is named after actress Grace Kelly, Princess of Monaco, who famously shielded her pregnancy using a Hermès bag. The bag has since become a status symbol, sought after by celebrities, socialites, and collectors alike. Orders for new versions, by appointment only, often take months or years to fulfil.
The one sold at Sotheby’s in Paris was produced by the French luxury goods firm Hermès this year. It’s one of an extremely small limited editions, offered only to VIP clients, according to Sotheby’s. Six bidders vying for the iconic crocodile-skin bag pushed the price to more than double its presale high estimate of €120,000.
In another online sale by Sotheby’s, a slightly older version of Himalaya Kelly, from 2021, has a starting bid of HK$1 million (US$127,388). Bidding will close on Oct. 13.
At Christie’s, a collection of more than 200 Hermès handbags from a private European collector, a longtime patron of Hermès, is being offered until Thursday with prices ranging from €500 to €14,000.
The collection includes several limited edition handbags and custom pieces. The highest priced lot is a Cognac ostrich skin Hermès Birkin bag from 2016, which carries a presale estimate between €12,000 and €14,000. A Vermilion Mouette leather Birkin, custom made in 2017, is offered for between €10,000 and €12,000. It has so far attracted seven bids with the highest bid at €10,000.
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New research suggests spending 40 percent of household income on loan repayments is the new normal
3 min
Requiring more than 30 percent of household income to service a home loan has long been considered the benchmark for ‘housing stress’. Yet research shows it is becoming the new normal. The 2024 ANZ CoreLogic Housing Affordability Report reveals home loans on only 17 percent of homes are ‘serviceable’ if serviceability is limited to 30 percent of the median national household income.
Based on 40 percent of household income, just 37 percent of properties would be serviceable on a mortgage covering 80 percent of the purchase price. ANZ CoreLogic suggest 40 may be the new 30 when it comes to home loan serviceability. “Looking ahead, there is little prospect for the mortgage serviceability indicator to move back into the 30 percent range any time soon,” says the report.
“This is because the cash rate is not expected to be cut until late 2024, and home values have continued to rise, even amid relatively high interest rate settings.” ANZ CoreLogic estimate that home loan rates would have to fall to about 4.7 percent to bring serviceability under 40 percent.
CoreLogic has broken down the actual household income required to service a home loan on a 6.27 percent interest rate for an 80 percent loan based on current median house and unit values in each capital city. As expected, affordability is worst in the most expensive property market, Sydney.
Sydney
Sydney’s median house price is $1,414,229 and the median unit price is $839,344.
Based on 40 percent serviceability, households need a total income of $211,456 to afford a home loan for a house and $125,499 for a unit. The city’s actual median household income is $120,554.
Melbourne
Melbourne’s median house price is $935,049 and the median apartment price is $612,906.
Based on 40 percent serviceability, households need a total income of $139,809 to afford a home loan for a house and $91,642 for a unit. The city’s actual median household income is $110,324.
Brisbane
Brisbane’s median house price is $909,988 and the median unit price is $587,793.
Based on 40 percent serviceability, households need a total income of $136,062 to afford a home loan for a house and $87,887 for a unit. The city’s actual median household income is $107,243.
Adelaide
Adelaide’s median house price is $785,971 and the median apartment price is $504,799.
Based on 40 percent serviceability, households need a total income of $117,519 to afford a home loan for a house and $75,478 for a unit. The city’s actual median household income is $89,806.
Perth
Perth’s median house price is $735,276 and the median unit price is $495,360.
Based on 40 percent serviceability, households need a total income of $109,939 to afford a home loan for a house and $74,066 for a unit. The city’s actual median household income is $108,057.
Hobart
Hobart’s median house price is $692,951 and the median apartment price is $522,258.
Based on 40 percent serviceability, households need a total income of $103,610 to afford a home loan for a house and $78,088 for a unit. The city’s actual median household income is $89,515.
Darwin
Darwin’s median house price is $573,498 and the median unit price is $367,716.
Based on 40 percent serviceability, households need a total income of $85,750 to afford a home loan for a house and $54,981 for a unit. The city’s actual median household income is $126,193.
Canberra
Canberra’s median house price is $964,136 and the median apartment price is $585,057.
Based on 40 percent serviceability, households need a total income of $144,158 to afford a home loan for a house and $87,478 for a unit. The city’s actual median household income is $137,760.
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