Five Australian cities in Knight Frank's top 30 for luxury residential real estate price growth
Five Australian cities have been named in the top 30 best performing luxury real estate growth markets in the world by Knight Frank.
In their Prime Global Cities Index Q3 2019, Sydney, Melbourne, Brisbane, Gold Coast and Perth all made it in to the top 30 which was crowned by Moscow.
In Australia, all but Perth, who ranked 30th, recorded growth higher than the average annual prime price growth of 1.1 per cent across 45 cities globally.
Sydney ranked 17 with gains of 2.6 per cent, jumping a place from last year. It topped the unmoved Melbourne, placed again at 21st, with two per cent growth.
Melbourne only just edged out Brisbane, ranked 22nd with two per cent.
The Gold Coast ranked 26th with 1.3 per cent gains. It was only last quarter it first appeared on the list. Perth was ranked 30th with growth of 0.7 per cent.
Knight Frank’s Head of residential research Australia Michelle Ciesielski said: “Whilst the Australian mainstream residential markets were progressively being corrected by tightened lending measures, the prime property market continued to experience positive growth given the prestige end of the market was less impacted by funding restrictions throughout this time.
“In fact, the major east coast cities of Sydney, Melbourne, Brisbane and the Gold Coast have now recorded 25 quarters, or more, of positive annual growth," she added.
“Growth in prime property prices closely follows the performance on the stock exchange – and there have been some significant gains made on the Australian sharemarket in 2019. Collectively the Australian prime market has continued to see sustainable growth of 2% in the year ending September 2019, whilst the sharemarket recorded a 7.7% return.
With equities on an upward growth trajectory, its likely this will follow through to further growth in prime property prices.”
The Prime Global Cities Index increased by 1.1% in the year to September 2019, down from 3.4% in 2018, with slower prime price growth attributable to mounting economic headwinds.
Knight Frank’s Head of Prestige Residential Deborah Cullen says that the top end of the market slow more consideration and time in transacting.
"There is still strong interest from local and expat buyers for blue ribbon areas and for “best in class” assets, in particular the waterfront areas of Sydney.”
