Australian Prime Property Continues To Shine
What the future holds for the Australian prime property market.
After a stable year of positive growth (pandemic considered) the results of the Prime International Residential Index (PIRI 100) forecast promising growth for Australian cities.
As a foundational element of Knight Frank’s The Wealth Report 2021, the PIRI 100 tracks luxury residential prices across the world’s top 100 residential markets found five Australian cities – Perth, Gold Coast, Brisbane, Sydney and Melbourne – were ranked in the top 65 for luxury residential market performance over the past year.
It’s smaller cities that shone in 2020, with Perth coming in as the top performer at number 24 with 3.6% annual growth, the Gold Coast following at 36 with 3.2% annual growth and Brisbane at 44 with 2.5% growth. Sydney and Melbourne both held up well in what was a tumultuous year for the global market, with the Harbour city coming in 56 (1.1%) and Melbourne 63 at (0.9%).
“In 2020, 29 per cent of locations saw prices decline year-on-year, up from 21 per cent in 2019, however, five markets also registered double-digit price growth in 2020, compared with just two the previous year,” says Knight Frank’s head of residential research Australia, Michelle Ciesielski.
“Australia’s luxury residential property market fared well, with three of the five cities included in the PIRI 100 recording growth greater than the global average, and in the case of Perth, nearly doubling it,” Ciesielski adds.
Further, the future looks particularly bright with the Knight Frank report forecasting luxury residential property prices in Perth, the Gold Coast and Sydney to rice by three per cent over 2021, while Brisbane expecting two per cent and Melbourne to grow at a slower one per cent.
The forecast comes off the back of demand for luxury property in Australia continuing to be strong, boosted by the ongoing pandemic and the continuing return of expats.
“Property prices in Perth are coming off the back of several years of price decline, but recently population growth has improved with prospering mining activity and resilient commodity prices, and this has led to a strong rebound in the residential market,” said Shayne Harris, national head of residential, Knight Frank
“In Sydney, it’s the super-prime property market – those sales exceeding A$10 million – which is driving up the overall prime performance as we see our ultra-wealthy clients upgrading the family’s main residence and buying new holiday homes as international travel is likely to remain subdued in the coming years.”
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