High priced properties are located in blue-chipped suburbs.
High price properties are located well
They come on to the market irregularly due to scarcity of supply and zoning limitations. There are less of these types of properties available. In times of economic downturn, these higher priced luxury items suffer first.
Property may be out of reach for many
From an affordability perspective, these properties may be out of reach for the majority of purchasers. This may limit your future market potential when you want to sell. The higher the value of the property, the less demand there is for the general population to purchase it.
You can also expect higher stamp duty and land tax costs if you are looking to invest in these properties.
High priced properties will mean a higher rental figure that could put them out of the reach of mainstream average tenants.
Harder to arrange financing
From a financing point of view, it can be harder to arrange for finance on a higher priced property. Lenders base the amount they are willing to lend against a property on how quickly they could sell the property to realise a debt.