Sydney Prime Property Prices Forecast To Keep Growing
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Sydney Prime Property Prices Forecast To Keep Growing

As the prestige residential market around the world continues to surge.

By Terry Christodoulou
Mon, Nov 22, 2021 2:33pmGrey Clock 2 min

Sydney will be the second-highest city for prime price growth in 2022 (9%), only behind Miami (10%) according to Knight Frank’s Prime Global Forecast data on prime property markets around the world.

The NSW capital is estimated to reach prime residential growth of 12% by the end of 2021, after recording 10.7% growth in the year to Q3 2021. This is in line with other global cities, with Knight Frank’s Prime Global Cities Index for Q3 2021 showing that 33% of global cities registered price growth above 10% in the same period.

With borders reopening and the return of investors combined with domestic buyers looking for second homes – the report posits that prime prices will accelerate further across Australia.

However, this is not a trend that is isolated to Australia, with Knight Frank’s data showing that 84% of global cities saw prime prices rise on an annual basis – a percentage that is growing each quarter.

Michelle Ciesielski, Knight Frank’s head of residential research indicates that the prime residential market will experience a lengthier upward swing — in line with other global cities.

“There have now been 35 consecutive quarters of uninterrupted positive annual growth in Sydney’s prime market, averaging 7.3% growth since 2013. Although we’re hearing of record prices being achieved at the very top end, the growth in the prestige market is steadily coming off a much higher footing,” said Ms Ciesielski.

“Contributing to Sydney’s prime values, the super-prime market is performing exceptionally well with many suburban records being achieved in excess of $10 million, especially for those homes located close to the water.”

Sydney wasn’t the only Australian city to perform well in the prestige market in the year to Q3 2021. All five major cities ranked in the top 23, from 45 global cities in the Prime Global Cities Index Q3 2021, averaging 9.3% annual growth – although this is still shy of the overall rate of growth for the global index at 9.5%.

While Sydney saw 10.7% annual growth in this time, Gold Coast and Perth were close behind with double-digit growth of 10.5% and 10.4%, respectively. Brisbane registered 8.4% growth, whilst Melbourne continued to pick up pace with 6.5%.

Following Sydney’s prime forecast of 9% in 2022, Gold Coast is earmarked to see the prime residential market grow by a further 8%, whilst Melbourne closer to 7%, followed by Perth and Brisbane at 6%.

Knight Frank defines the prime residential market as being the most desirable and expensive property in a given location, generally defined as the top 5% of each market by value.



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Terrible commutes. Expensive child care. Employees explain why they will keep working from home.

By RAY A. SMITH
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What’s still keeping American workers out of the office?

At a time when restaurants, planes and concert arenas are packed to the rafters, office buildings remain half full. Thinly populated cubicles and hallways are straining downtown economies and, bosses say, fragmenting corporate cultures as workers lose a sense of engagement.

Yet workers say high costs, caregiving duties, long commutes and days still scheduled full of Zooms are keeping them at home at least part of the time, along with a lingering sense that they’re able to do their jobs competently from anywhere. More than a dozen workers interviewed by The Wall Street Journal say they can’t envision returning to a five-day office routine, even if they’re missing career development or winding up on the company layoff list.

Managers say they will renew the push to get employees back into offices later this year. The share of companies planning to keep office attendance voluntary, rather than mandatory, is dropping, according to a survey released in May of more than 200 corporate real-estate executives conducted by property-services firm CBRE, one of the largest managers of U.S. office space.

A battle of wills could be ahead. The gap between what employees and bosses want remains wide, with bosses expecting in-person collaboration and workers loath to forgo flexibility, according to monthly surveys of worker sentiment maintained by Nicholas Bloom, a Stanford University economist who studies remote work.

Escalating expenses

One reason workers say they’re reluctant to return is money. Some who have lost remote-work privileges said they are spending hundreds, or in some cases thousands, of dollars each month on meals, commutes and child care.

One supercommuter who treks to her Manhattan job from her home in Philadelphia negotiated a two-day-a-week limit to her New York office time this year. Otherwise, she said she could easily spend $10,000 a year on Amtrak tickets if she commuted five days a week.

Christos Berger, a 25-year-old mortgage-loan assistant who lives outside Washington, D.C., estimates she spends $2,100 on child care and $450 on gas monthly now that she is working up to three days a week in the office.

Berger and her husband juggled parenting duties when they were fully remote. The cost of office life has her contemplating a big ask: clearance to work from home full time.

“Companies are pushing you to be available at night, be available on weekends,” she said, adding that she feels employers aren’t taking into account parents’ need for family time.

Rachel Cottam, a 31-year-old head of content for a tech company, works full time from her home near Salt Lake City, making the occasional out-of-town trip to headquarters. She used to be a high-school teacher, spending weekdays in the classroom. Back then, she and her husband spent $100 a week on child care and $70 a week on gas. Now they save that money. She even let her car insurance company know she no longer commutes and they knocked $5 a month off the bill.

Friends who have been recalled to offices tell Cottam about the added cost of coffee, lunch and beauty supplies. They also talk about the emotional cost they feel from losing work flexibility.

“For them, it feels like this great ‘future of work’ they’ve been gifted is suddenly ripped away,” she said.

Parent trade-offs

If pandemic-era flexible schedules go away, a huge number of parents will drop out of the workforce, workers say.

When Meghan Skornia, a 36-year-old urban planner and married mother of an 18-month-old son, was looking for a new job last year, she weeded out job openings with strict in-office policies. Were she given such mandates, she said, she would consider becoming an independent consultant.

The firm in Portland, Ore., where Skornia now works requests one day a week in the office, but doesn’t dictate which day. The arrangement lets her spend time with her son and juggle her job duties, she said. “If I were in the office five days a week, I wouldn’t really ever see my son, except for weekends.”

Emotional labor

For some, coming into the office means donning a mask to fit in.

Kenneth Thomas, 42, said he left his investment-firm job in the summer of 2021 when the company insisted that workers return to the office full time. Thomas, who describes himself as a 6-foot-2 Black man, said managing how he was perceived—not slipping into slang or inadvertently appearing threatening through body language—made the office workday exhausting. He said that other professionals of colour have told him they feel similarly isolated at work.

“When I was working from home, it freed up so much of my mental bandwidth,” he said. His current job, treasurer of a green-energy company, allows him to work remotely two or three days a week.

Lost productivity

The longer the commute, the less likely workers are to return to offices.

Ryan Koch, a Berkeley, Calif., resident, went to his San Francisco office two days a week as required late last year, but then he let his attendance slide, because commuting to an office felt pointless. “I’m doing the same video calls that I can be doing at home,” he said.

Koch, who works in sales, said his nonattendance wasn’t noted so long as his numbers were good. When Koch and other colleagues were unable to meet sales quotas in recent weeks, they were laid off. Ignoring the in-office requirement probably didn’t help, he said, adding he hopes to land a new hybrid role where he goes in one or two days.

Jess Goodwin, a 36-year-old media-marketing professional, turned down an offer to go from freelance to full time earlier this year because the role required office time and no change in pay.

Goodwin said a manager “made it really clear that this is what they’re mandating right now and it could change in the future to ‘you have to be back in five days a week.’”

Goodwin, who lives in Brooklyn, N.Y., calculated that subway commutes to Midtown Manhattan would consume more than 150 hours annually, in addition to time spent getting ready for work.

Goodwin’s holding out for a better offer. She said she would consider a hybrid position if it came with a generous package and good commute, adding: “And I would also probably need something in my contract being like, ‘We’re not going to increase the number of days you have to come in.’”

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