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
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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.
BNW Developments has established a Sydney presence, joining Arada and Sobha Realty among the growing number of UAE developers pursuing Australian buyers and development opportunities.
Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
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A vibrant 1954 Palm Springs home featuring eight colorful murals by late artist Shawn Savage is on the market for $2.295 million. The 2,237-square-foot property features bold hot-pink doors, three bedrooms, a pool, mountain views and playful interiors blending modern glamour with classic Palm Springs style.
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A bold 1950s home in Palm Springs, California, adorned with eight colorful murals by the late artist Shawn Savage, is coming to market ahead of the city’s annual Modernism Week.
The white stucco home on El Camino Way, built in 1954 and recently renovated, has an asking price of $2.295 million. Its staggered facade features three playfully abstract murals on either side of double-height hot pink doors.
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The sellers are Los Angeles-based partners John Freeman and Mathieu Faure, who knew it was “the one” when they saw it after several months of searching in the winter of 2023. “It’s a happy house,” Freeman said. “We really liked the feel of the house: the uniqueness, the openness, the brightness—and the art.”
Located in the Mesa neighborhood of Palm Springs, which backs up to the San Jacinto Mountains, the 2,237-square-foot house features three bedrooms, an angled bonus room and a yard with a pool, desert mountain views and another colorful mural running alongside the pool.
“I never thought in my life I would have a house with pink doors,” said Faure, a producer at Apple TV who is originally from Paris. “It’s so colorful, it’s so different. And so Palm Springs.”
The layout of the home creates a smooth flow from the front doors through the open-plan common area—a foyer, bar, and living and dining room—into the kitchen around a fireplace wall and out to the yard. A corridor leads to a private bedroom wing, where the primary suite has floor-to-ceiling windows and the primary bath is only a tad smaller than the bedroom.
Faure has filled the home with Jonathan Adler furniture, rugs and accessories, riffing on the energetic California vibes of the house to create an aesthetic of “modern American glamour,” he said.
“It was enjoyable for me to play with different types of furniture and make this house ‘happy chic,’ as I describe it,” he said.
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“He did a fantastic job,” said Freeman, who is an attorney and consultant. “It does kind of bring a smile to my face whenever I walk into the house.”
Since the furniture and decor were chosen for the particularities of the space, the couple is open to selling them with the home. Their West Hollywood house is already furnished; the collection doesn’t match the vibes of a Houston loft they bought near family; and Faure can’t imagine these pieces in New York—where he’s lived in the past—he said.
The duo bought the Palm Springs house for $1.925 million in 2024, according to property records, and will list the home Monday. They are represented by Stewart Smith, Patrick Jordan and Kevin Stanley of Bennion Deville Homes/Luxury Portfolio International.
The previous owners had purchased the home in 2021 for $975,000 and then spent more than two years and $700,000 on the renovation, according to Realtor.com. They commissioned Savage, a local Palm Springs artist and painter known for his joyful abstract work, to decorate the home.
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Savage, who died in 2024, lived in the Coachella Valley from 2003, and his work can be found in various local institutions and is on exhibit at the Illumine Gallery in Palm Springs. “Some artists pass through a place. Shawn Savage became a part of it,” the gallery’s description states.
Unsurprisingly, the murals invite lots of friendly conversations, as well as guided tours and interested lookers, but never to a degree that it disturbed the peacefulness of their home or the neighborhood, the sellers said. “It felt like living in an art gallery, and you have the exterior that you would share with the world,” Faure explained.
The neighborhood also played a role in their decision to buy, because of its access to the hiking trails of the San Jacinto Mountains, the lack of through-roads and the neighborly environment.
“It’s a very friendly place,” Faure said.
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