Despite the property downturn, Sydney remains Australia's number one luxury market for high-end real estate.
The Wealth Report 2019 released by Knight Frank tracks the movement of luxury property prices of 100 cities around the world.
Sydney ranked 30th in the latest report, just outperforming Brisbane (31), Melbourne (41), Perth and the Gold Coast (42) who all made the top 50 list for prestige property growth over the past year.
Michelle Ciesielski, Knight Frank’s Head of Residential Research, Australia said lower price growth was an ‘inevitable consequence’ of the shift in monetary policy in most global markets away from the ultra-low interest rates which have supercharged real estate markets since 2008.
Australia's prime market continues to track above the global average for luxury residential price growth over the year to December 2018.
Sydney topped the list at 3.1 per cent growth; Brisbane at 3 per cent; Melbourne at 2.2 per cent; and Perth and the Gold Coast at 2.1 per cent.
“The price growth between prime global markets is converging – and Australia is no exception.
The Wealth Report Attitude Survey found that Australia retained its position as the third most popular country for those planning to buy prestige residential property - just behind the US and the UK.
"Australia remains a top destination for the ultra-wealthy due to multiple factors, including lifestyle, education, and political stability," Knight Frank’s Head of Residential, Australia Sarah Harding said.
“Ultra-high-net-worth individuals dedicate a large portion of their wealth to property. This has been confirmed by the growth in the average number of homes owned by wealthy people around the world increasing from 2.9 per cent to 3.6 per cent over the past year. We found Australian UHNWIs owned three residential homes, on average, in 2018."
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