The Australian capitals experiencing world-class price growth in luxury real estate
The latest wealth report reveals two Australian capitals posted above average results compared with the rest of the world
3 min
Luxury real estate in Perth and the Gold Coast delivered above-average price growth compared to the rest of the world in 2023, but this year Sydney and Melbourne are expected to outshine the other Australian capitals, according to Knight Frank’s newly released global research report, The Wealth Report 2024.
Knight Frank’s Prime International Residential Index (PIRI 100), which measures price growth among luxury homes in the top 5 percent of the market in 100 prime locations, found luxury residential property prices were surprisingly resilient in the turbulent global economy last year, rising by 3.1 percent on average.
This was down on the 5.2 percent average recorded in 2022 and 8.4 percent in 2021. However, given the rapid rise of interest rates during the world’s fight against inflation, Knight Frank analysts said the growth rate was “solid”, with 80 cities recording flat or positive annual price rises. The resilience was largely due to a lack of supply, which created more buyer competition for fewer homes on the market.
Leading the PIRI 100 for growth was Manila, up 26 percent, followed by Dubai at 16 percent, The Bahamas at 15 percent; and Algarve in Portugal and Cape Town in South Africa both at 12.3 percent. In Australia, Perth and the Gold Coast recorded price rises that were higher than the global average at 5.2 percent and 4.1 percent, placing them in 28th and equal 38th place among the 100 PIRI cities. Sydney ranked equal 49th with 2.7 percent growth, followed by Brisbane in 58th place with a 2.3 percent price rise. Melbourne was the laggard among Australian cities, ranking equal 63rd with growth of 1.4 percent.
Knight Frank global head of research, Liam Bailey, said wealthy people targeted luxury residential property in 2023 as their portfolios began to recover. Mr Bailey said 24 percent of the world’s ultra-high-net-worth individuals (UHNWIs), defined as having a net worth of US$30 million or more, were actively looking to buy last year. The report finds that demand will likely be similar in 2024.
Looking ahead, Knight Frank analysts have provided their 2024 forecasts for luxury residential house price growth in 25 of the world’s most in-demand markets. They predict an average growth rate of 2.5 percent for the group, up from 1.7 percent in 2023. They think Auckland will record the strongest growth at 10 percent, followed by Mumbai in India at 5.5 percent. Among Australian cities, Sydney will lead the way with 5 percent growth, followed by Melbourne with 3 percent. This would place both cities in the top 10 out of the 25 cities canvassed.
The analysts also predict that Sydney will experience the highest prestige property rental price growth in 2024 at 12 percent, far ahead of any other city in the world. The next strongest prestige rental markets are tipped to be Auckland and Toronto in Canada with 6 percent growth, London at 5.5 percent and New York at 5 percent.
The Wealth Report finds that lack of stock was a key driver of price growth for both sales and rental markets last year, and this will remain the case in 2024. For example, Sydney’s luxury home sales were down by 37 percent in 2023, with similar volume declines also seen in London, New York, Dubai, Singapore and Hong Kong.
Knight Frank Partner Erin van Tuil said: “Whilst volumes have dropped for Sydney’s prime residential market, values have not, demonstrating once again that Sydney remains a popular location to live and invest ... The fundamentals of the Sydney market, such as lifestyle, transparent government and taxes and the sheer beauty of living in the Harbour City are unlikely to change, and therefore Sydney’s popularity is likely set to remain. With only so many waterfront locations available … owning a slice of Sydney Harbour real estate remains a popular investment.”The report also reveals what US$1 million buys in prime global cities and popular second-home areas in sun and ski holiday locations. In Sydney, US$1 million buys 43 sqm, and on the Gold Coast, it buys 112 sqm. By comparison, US$1 million buys 20 sqm in Aspen, 22 sqm in Hong Kong, 32 sqm in St Tropez, 33 sqm in London, 34 sqm in New York, 38 sqm in Los Angeles, 40 sqm in Paris and 42 sqm in Shanghai.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
The actress has owned the rustic-chic house in Sagaponack, New York, since 2019
2 min
Drew Barrymore is making an almost $8.5 million adjustment to her real estate portfolio with the listing of her home in the Hamptons.
The renovated barn, built in 1920, is asking $8.45 million and sits on 1.7 acres in the heart of Sagaponack, less than a mile from the ocean. It hit the market last week.
The actress and talk show host has owned the seven-bedroom home—which has appeared across her social media platforms—since 2019, when she paid $5.5 million for it using a limited liability company for the purchase, records in PropertyShark show.
Despite its transformation into a residence, the former barn still has plenty of period charm, from soaring ceilings and exposed beams to hardwood floors.
The hub of the 6,850-square-foot, light-filled home is the great room and adjacent breakfast nook and kitchen, the latter of which is separated from the rest of the space by a wall made from window frames. Glass doors open up from the great room onto a deck.
There’s also a living room with a brick fireplace, a pink-painted dining room with a sloping ceiling and a skylight, and a den. Plus a separate one-bedroom guest house with a living room and office area, according to the listing with Kathy Konzet of Sotheby’s International Realty – East Hampton Brokerage. Konzet wasn’t immediately available to comment.
The park-like grounds, complete with flowering gardens and rolling lawns, are home to a pool, pool house, a bocce court and plenty of areas for outside entertaining.
Barrymore, 49, began her career at just 11 months old when she appeared in a dog food commercial, and at 7, she starred in 1982’s “E.T. the Extra-Terrestrial.” As an adult she’s best known for roles in “Charlie’s Angels,” “Grey Gardens,” “The Wedding Singer,”and “50 First Dates.”
Her talk show, “The Drew Barrymore Show,” debuted in 2020. A representative for the star couldn’t be reached for comment.
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
This stylish family home combines a classic palette and finishes with a flexible floorplan
