Latest NewsSydney’s prestige home prices set to rise by 10%Thursday, 22 July 2021

 

Sydney’s luxury home market is poised to outperform all other big cities in the world with prices expected to jump by 10 per cent this year, higher than forecast earlier and despite the current lockdown.

Miami came second with 6 per cent projected growth, followed by Los Angeles and Hong Kong with 5 per cent expected price rises.

Australia’s biggest city, crowned the most improved prime residential market, is also predicted to rack up 7 per cent growth next year after posting three quarters of record-breaking sales.

Lockdowns and the COVID pandemic haven’t yet had a negative impact on Sydney’s luxury property market – in fact, they are carrying it from strength to strength, with wealthy Aussies purchasing luxury properties domestically instead of overseas.

Although lockdowns are currently in place, exclusive viewings are custom when buying prestige residential property and, in many instances, off-market purchases were already taking place with ultra-wealthy Australians who have been grounded on home soil for the past 16 months.

In December,  Sydney’s premium market was expected to grow by 3 per cent this year.

But since then sales momentum has ramped up. In the first three months of the year, 1429 premium homes were sold in Sydney – the highest quarterly volume on record. In the year to March 31, sales volumes surged 58 per cent to 2298.

The past three consecutive quarters have resulted in the highest number of prime sales transactions on record, so this mounting turnover suggests there is still depth in the market for 2022, especially given Australia’s international borders are likely to remain closed for the foreseeable future.

Every quarter since March 2013, Sydney’s prime residential market has recorded positive annual price growth, demonstrating the ongoing undersupply of luxury prestige homes being built while our ultra-wealthy population continues to rise.

The number of ultra-rich Australians rose by 10.9 per cent last year to 3124 and is forecast to grow 3.8 per cent annually in the next five years.

An ultrahigh net worth individual is regarded as someone with a net worth of more than $US30 million ($40 million).

Prime residential property is considered the most desirable and expensive property in a given location, generally defined as the top 5 per cent of each market by value.

 

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