Sydney's prime residential market reaches new high - Knight Frank
Contact
Jun 24, 2019
Sydney's prime residential market reaches new high - Knight Frank
A new benchmark has been set for Sydney's prime residential market, according to the latest global research from Knight Frank.
-
Luxury ListThe view from Level 40/184 Forbes Street. As seen on Luxury List.
New data from Knight Frank has revealed prime residential prices in Sydney reached their highest point on record last year.
The Wealth Report Insight Series – June 2019 explores the evolution in pricing over the past five years in the prime residential market across 10 global cities, including Sydney, London, New York (Manhattan only), Miami, Hong Kong, Singapore, Shanghai, Berlin, Paris and Dubai.
Knight Frank defines prime property as the most desirable expensive property in a given location, generally defined as the top 5 per cent of each market by value.
At a glance:
- Knight Frank has released its The Wealth Report Insight Series – June 2019
- The research explores the evolution of pricing over the past five years in the prime residential market across 10 global cities
- It found Sydney’s average prime price in 2018 was A$27,244 (US$19,179) per square metre, the highest recorded over the period – and highest held on record.
The report compares the average price per square metre and per square foot on a city-by-city basis for internal area, as well as presenting the top price achieved in each market over the 2014 to 2018 period.
The research found Sydney’s average prime price in 2018 was about A$27,244 (US$19,179) per square metre, the highest recorded over the period – and highest held on record.
Sydney ranked sixth for the average prime price in 2018, ahead of Shanghai (A$27,740 per square metre or US$17,417 per square metre), Berlin (A$17,866 per square metre or US$12,577 per square metre), Miami (A$15,296 per square metre or US$10,768 per square metre) and Dubai (A$9,559 per square metre or US$6,729 per square metre).
Knight Frank’s Head of Residential Research Australia Michelle Ciesielski, said the city’s average prime price had risen from A$18,903 (US$13,307) per square metre in 2014 and was up from A$26,413 ($US18,594) per square metre in 2017.
“Interestingly, Sydney also achieved its top residential price in 2018, at an estimated A$76,919 per square metre (US$54,149 per square metre), which was the fourth highest price achieved out of the 10 cities examined," she said.
Level 40/184 Forbes Street. As seen on Luxury List.
Knight Frank’s Partner and Head of Prestige Residential Deborah Cullen said there were only a handful of local exclusive super-prime properties available in Sydney for the growing ultra-wealthy and billionaire population, and competition for these rare properties was driving prices up.
“The Sydney super-prime luxury market has had three consecutive years where each year the top sale has smashed the previous year’s record.
“These types of buyers own multiple residential homes and are typically looking for ‘best in class’ or ‘one-only’ style properties with a particular focus on iconic Sydney harbourfront residences with panoramic views and waterfront access.”
Across the 10 global cities surveyed, the differential between the prime average and top price achieved was just under 200 per cent.
Ms Ciesielski said while, in many cities, the highest achieved price corresponded with the prime market overall reaching its peak, there were exceptions.
“Over the past five years the gap has been the widest in Hong Kong, with a five-year average of 390 per cent, while the uplift was the lowest in Paris and Singapore, with five-year averages of 30 per cent and 39 per cent respectively," she said.
“Sydney sits in the middle, with the premium uplift differential averaging 128 per cent over the five years from 2014 to 2018.”
Click here to view the Knight Frank Wealth Report Insight Series.
SImilar to this:
Knight Frank Wealth Report shows Australia still mixing it with the best
Contact Details:
