Australia is currently enjoying a healthy real estate and property market, and Ferrari is reaping the benefits. Sales of the typically red supercars jumped 48 percent in 2015 from the previous year, Bloomberg reports, with housing prices being linked to the surge.
According to the Reserve Bank of Australia, an increase in car sales can be directly attributed to rising home prices. As median home prices in Sydney climbed 12 percent in 2015 to $935,000 AUD ($670,000 USD), Porsche and Ferrari sales rose while sales of budget car companies like Proton fell flat.
“People are looking at the value of their home,” Craig James, a senior economist at the securities unit of Commonwealth Bank of Australia, told Bloomberg. “Home prices have been recording good gains, so they’ve seen their wealth levels rising. That’s also rationalizing their choice in going a little bit upmarket.”
Ferrari Australia also credited the housing and property boom for their strong performance in the region and said low borrowing costs are helping their products become more affordable to more people.
“Property has been a driving force for us,” said CEO of Ferrari in Australia and New Zealand, Herbert Appleroth. “It’s people who are investing, it’s the developers, it’s the specialized trades who are also benefiting.”