Austin: Property Prices in Prime Locations Rise by Up to 12 Percent
Posted by Team Global Corporate Communication — August 31, 2015
AUSTIN, TX - The property market in Austin, the US state capital of Texas, is still on the rise. Top values for exclusive villas in premium locations have risen by up to 12 percent in the last 12 months. The current positive price trend has a great deal to do with the high level of demand from overseas buyers and investors. “Prospective international buyers view Austin as an attractive place to live due to the political stability and flourishing economy,” said Michele Turnquist, Managing Partner of Engel & Völkers in Austin.
A current highlight in Downtown Austin is this 1,587 square feet (approx. 147 square metres) luxury condo, which is on the market through Engel & Völkers Austin for 869,000 US dollars (approx. 782,000 euros).
Austin is a young and dynamic city, with one of the fastest growing property markets in the USA. Many famous companies such as Apple, Facebook, IBM and Samsung are based in Austin. This has led to a growth in employment and a corresponding demand for homes in one of the desirable locations of this American city. The most popular neighbourhoods include Downtown Austin, Lake Austin and Lake Travis. “The majority of buyers in these locations are looking for exclusive condos with wonderful views over the city or detached houses with unrestricted lake views,” said Michele Turnquist. Real estate on the waterfront is mainly bought by clients from Europe or other US states.
Up to 20 million US dollars for first-class villas on Lake Austin
Luxury villas on Lake Austin with high-quality furnishings and direct access to the water reach top prices of up to 20 million US dollars (approx. 18.1 million euros). Detached houses without a lake view can reach top prices of up to 7.4 million US dollars (approx. 6.7 million euros). For condos in Downtown Austin buyers can expect to pay up to 1,200 US dollars per square foot (approx. 12,000 euros per square metre). “The properties that sell most quickly are those between 800,000 US dollars (approx. 720,000 euros) and 1.2 million US dollars (approx. 1.1 million euros). In this price category there are very few properties on the market because the demand is so great”, reports Michele Turnquist.
The time to market for a property, according to the real estate expert, is around 58 days. “This figure can vary from district to district however. The key factors are always the location and furnishings of a property,” said Michele Turnquist. Alongside a premium location, the priority for many prospective buyers is a high-quality kitchen with built-in appliances. Another popular feature is an outdoor kitchen. Buyers also appreciate the latest technology for audio and video systems as well as the use of environmentally friendly materials.
High demand surplus pushes prices up
Michele Turnquist is extremely optimistic about the future development of the residential market in Austin. “One current trend we are seeing is increasing numbers of clients over 60 who are deciding to sell their large homes in the suburbs around Austin and move to barrier-free apartments in Downtown,” says Michele Turnquist. In light of the increasing demand for living space, numerous new-build projects are currently underway in the city centre. In the booming outlying districts such as Spicewood, Leander, Cedar Park and Georgetown, the city is meeting demand with intensified new building development. “Despite the high number of new homes in the best locations, we are not yet able to keep up with demand. We therefore assume that prices will continue to rise in the desirable locations,” Michele Turnquist added.
Austin is the capital of the US state of Texas and lies on the Colorado River. The city offers a high standard of living with a wide range of sporting amenities, world-famous music events such as the annual “South by Southwest” Festival, a well-developed infrastructure and outstanding accessibility through the nearby airport. The University of Texas is one of the largest universities in the United States and enjoys an excellent reputation. Austin has been the venue for the Formula 1 United States Grand Prix since 2012, attracting a multitude of international guests to the US city every year.