Brisbane, Sydney, Melbourne and Perth make Knight Frank Prime Global Cities Index
Contact
May 16, 2019
Brisbane, Sydney, Melbourne and Perth make Knight Frank Prime Global Cities Index
Australia has received strong representation in the Knight Frank Global Cities Index for Q1 2019, with four capital cities included on the list.
-
DepositphotosBrisbane was ranked 14th in the latest Knight Frank Prime Global Cities Index
Four Australian capital cities have ranked in the top 23 globally for luxury residential price growth, according to Knight Frank.
The Knight Frank Prime Global Cities Index tracks the movement in prime residential prices (the top 5% of the housing market in most cities, by value) across 45 cities worldwide, with the Q1 2019 report listing Brisbane as 14th for luxury price growth, followed by Sydney (18), Melbourne (22) and Perth (23).
The overall index increased by 1.3% in the year to Q1 2019, its lowest average annual rate of growth since Q4 2009, and down from 1.8% in the previous quarter.
Knight Frank Prime Global Cities Index – Q1 2019 - At a glance:
- Four Australian cities rank in the top 23 globally for luxury residential price growth.
- Brisbane ranks 14th (3.2% annual growth), Sydney ranks 18th (2.4%), Melbourne ranks 22nd (1.8%) and Perth ranks 23rd (1.8%).
- The Australian cities all recorded growth higher than the average annual prime price growth of 1.3% across 45 cities globally.
According to Knight Frank, there has been an average rise of 57.4% in luxury prices throughout the past decade.
Head of Residential Research Australia Michelle Ciesielski said although it was still rising, prime global residential price growth had continued to moderate due to political and economic headwinds, the rising cost of finance, and more property market regulations around the world.
“In the first quarter of 2019, the threat of a global trade war loomed, uncertainty surrounding Brexit peaked and the IMF projected that 70% of the world’s economies would see a slowdown in growth in 2019,” she said.
View Knight Frank's profile on Luxury List
“Add to this the rising cost of finance - the US alone has seen nine rate rises since December 2015 influencing not just the US but also the 13-plus currencies pegged to the US dollar - and a moderation in prime sales, and hence prices, was expected.
“The Australian luxury market continues to perform well, with Sydney, Melbourne, Perth and Brisbane all recording growth in luxury residential prices higher than the overall average of 1.3% in the 12 months leading up to the end of March this year."
Balmoral Residence, Coronation Avenue, NSW, 2088. As seen on Luxury List.
Knight Frank Partner & Head of Residential Australia Sarah Harding said Knight Frank had found the majority of buyers in Australia's prestige market were not under the same pressures experienced by those in the mainstream market.
"Sydney is continuing to see positive growth in the prestige market, with limited luxury properties suitable for high-end buyers," she said.
“They’re looking not only for superb quality finishes, but smart technology and high levels of privacy within their luxury residences.
“With competition for limited stock, we expect to see positive price growth for luxury homes, albeit at a more sustainable pace than in previous years.”
The Knight Frank Prime Global Cities Index – Q1 2019 found Russia and CIS was the strongest performing world region in the year to Q1 2019, with Moscow rising up the rankings to take the number two spot, with 12% growth in prime residential prices over the past year.
Similar to this:
Sydney, Melbourne, Hobart climb Knight Frank global price-growth index
Hobart leaps to 11th place on Knight Frank price growth index
Sydney, Melbourne make top 20 for Knight Frank Prime Residential Index
Contact Details:
