With the development of the entertainment industry, celebrity effect has become essential in all walks of life. In life, all kinds of marketing advertisements are filled with the same style with ** and ** are also used. These products can be mutually beneficial to celebrities to a certain extent. For example, when choosing key opinion leaders (KOL) on Instagram, brands will choose those that fit the brand image, so they can let these KOLs highlight the part that is consistent with the product and personal image. At the same time, products with celebrity endorsements are generally more expensive than those without celebrity endorsements because of their higher marketing costs. Is there such a thing as a celebrity effect in the housing market? This article will analyse the celebrity effect in the real estate market from four practical cases.
First of all, according to this news indicates that the Malvern East home of Andrew Bolt, the Herald Sun columnist and host of Sky News, sold for A $2.8 million. This house is a four bedrooms family home has shared by Herald and his wife, and the expected price was from A $2.5 m to A $2.75 m. The last record for this transaction was in 1998 when Bolt and his wife owned the property for more than 20 years, and the transaction price was A $506K. Over two decades, it’s hard to gauge the specific reasons for the increase in the value of the house. But from a market point of view, the home’s amenities, floor space and decor could add to its value. At the same time, the geographical location of the house is also amenities that cannot be ignored. There are a lot of schools and amenities around it. As a result, it is hard to quantify the price rise brought about by celebrity effect here.
Thirdly, the news shows that Mr Warne failed to sell his Brighton mansion at a private auction, so he offered the buyer a $1 million discount. His psychological forecast for 2019 is a maximum of A $8 million. Over time, its listing price dropped to a $6.8-7.4 million in March. However, in the most recent auction, bidders offered a price range of A $5.8-A $6.38 million, which is well below Shane’s expectations. In this case, the celebrity effect can be said to be completely absent. For high-priced properties, buyers should focus on the value of the home rather than the identity of the previous owner.
In conclusion, in terms of the real estate market, the celebrity effect can only affect the popularity of the house auction, which may increase the number of people attending the auction. However, the main factors affecting the transaction price are the location and facilities of the house.
From the moment of occupancy, the quality of the Sightstone development and nearby configuration provides excellent support for attracting tenants and reducing the carrying cost when investing in real estate. If you need any advice on real estate investment, we are here to help.