Sydney luxury home prices set to eclipse the world
Sydney has been ranked as the world’s leading city in luxury homes in the Knight Frank 2021 prime forecast report, with prices expected to rise 10 per cent over the coming year.
The report shows that wealthy Australians have not been deterred by the global pandemic, border closures and lockdowns in their desire for luxury property, with Sydney topping the list in forecast price growth over Miami and Los Angeles in the United States.
Knight Frank’s annual Prime Global Forecast 2021/2022 shows that globally, luxury residential prices are forecast to rise faster than envisaged. It showed that in the first quarter of calendar 2021, 1429 prime sales were recorded in Sydney – the highest quarterly figure on record for the city.
It even predicts Sydney will continue its reign in the top spot in 2022, when, together with London, both cities are forecast to see prime prices accelerate 7 per cent year-on-year.
The news will augur well for the luxury developments being undertaken by Lendlease at its One Sydney Harbour apartments at Barangaroo and the Cbus Property’s 111 Castlereagh above the former David Jones menswear store in Market Street in the CBD.
Knight Frank Australia’s head of residential research, Michelle Ciesielski said every quarter since March 2013 Sydney’s prime residential market has recorded positive annual price growth, demonstrating the ongoing under-supply of luxury prestige homes being built whilst our ultra-wealthy population continues to rise.
“Many of our ultra-wealthy clients are now embracing the low interest rate environment to expand their property portfolios further, as they redirect funds into their business interests, the stock market and other investments,” Ms Ciesielski said.
“Despite economic headwinds resurfacing in recent weeks, the underlying fundamentals for the upper echelon of Sydney’s prime property market are still incredibly strong.”
She said as wealth creation continues amongst Sydney’s elite, the thin number of prime luxury property listings has pointed towards further price growth in the second half of 2021.
According to the report, the past three consecutive quarters has resulted in the highest number of prime sales transactions on record, so this mounting turnover suggests there is still depth in the market for 2022, especially given Australia’s international borders are likely to remain closed for the foreseeable future.
“Although lockdowns are currently in place, exclusive viewings are custom when buying prestige residential property and in many instances off-market purchases were already taking place with ultra-wealthy Australians, who have been grounded on home soil for the past 16 months,” she said.
