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.
As tariffs bite, Sydney’s MAISON de SABRÉ is pushing deeper into the US, holding firm on pricing and proving that resilience in luxury means more than survival.
Early indications from several big regional real-estate boards suggest March was overall another down month.
$30 Million Nashville-Area Estate Quietly Looks for a Buyer.
2 min
A 120-acre property 35 miles outside of Nashville, Tennessee, is selling off market for $30 million, making it the second-most-expensive home for sale in the state.
Located in Franklin, about 20 minutes from downtown, Cortina Farms is both a private residence and an event venue, which charges up to $56,000 to rent for the day, according to Compass, which is marketing the pocket listing. Erin Krueger holds the listing.
The only residence on the open market with a higher price in Tennessee is another Franklin property, which spans 749 acres and is asking $37.5 million.
Cortina Farms takes design inspiration from the Italian countryside, with stonework heavily featured around the verdant grounds.
The main house, with a stone exterior and a shingled roof, has approximately 2,500 square feet of living space, with three bedrooms and two bathrooms. Outside, there’s a covered back porch, an outdoor grill, a pool and a hot tub. There are also two guest apartments off the main house, each with a bedroom and a full bathroom.
In addition to its event business opportunities, the property is also designed for an equestrian, with two barns featuring a total of 12 stalls. Near the stables are four large fenced pastures that equal about 10 acres.
Other amenities include a wellness center, a party barn with a catering kitchen, an amphitheater, two lakes stocked with bass and catfish, and a helipad. Scenic trails for walking, running or ATV riding meander throughout the property past creeks, mature trees and waterfalls, according to information provided by Compass.
The property last traded hands in 2021 for $9 million, records on PropertyShark show. The owners weren’t available for comment.
The Nashville metro area has become a luxury real estate hot spot over the past few years, largely attracting people from Los Angeles as well as other out-of-state buyers looking for properties with a large amount of acreage.
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