Sydney has made an impressive mark on the global real estate stage, securing the eighth spot in Knight Frank’s Prime Global Cities Index (PGCI) for Q3 2023.
The city’s luxury residential property market experienced a notable 4.2 per cent increase over the past year, reflecting a robust performance in a competitive landscape.
Sydney’s high ranking is a testament to its strong market dynamics, with other Australian cities also making their presence felt. The Gold Coast followed closely in 11th place, with a 3.9 per cent increase, while Perth and Brisbane secured 12th and 15th positions, showing growth rates of 3.8 per cent and 2.5 per cent respectively. This collective rise highlights a positive trend across the Australian property market.
In fact, every Australian city featured in the PGCI reported growth rates exceeding the global average of 2.1 per cent across the 46 markets covered by Knight Frank. This broad-based uplift indicates a healthy appetite for luxury properties in Australia, driven by factors such as increasing migration and constrained supply.
Michelle Ciesielski, Knight Frank’s Head of Residential Research, points out that nearly 70 per cent of cities globally reported price increases over the past year. This trend signifies that despite higher mortgage rates, the global housing market is showing signs of stabilisation. Ciesielski notes that 63 per cent of markets saw price rises in the third quarter alone, underscoring a resilience in the sector.
For Erin van Tuil, Knight Frank’s Head of Residential, Australia’s strong showing in the ranking reflects increased demand for high-end properties. This demand is buoyed by a surge in migration and a persistent supply shortage, which have been pivotal in driving the Australian property market’s performance over the past year.
Looking ahead, Knight Frank forecasts a continued upward trajectory for luxury home prices. The firm anticipates a 3 per cent increase by the end of 2023, followed by a 4 per cent rise in 2024, and a further 5 per cent increase by 2025. These predictions highlight the sustained confidence in the luxury real estate sector, both locally and globally.
Sydney’s eighth-place ranking not only highlights its strong market performance but also underscores its resilience amidst global economic challenges. As the city continues to draw both local and international buyers, its standing in the luxury property market is expected to remain solid.
Overall, the latest Knight Frank index illustrates a vibrant and stabilising global luxury property market, with Australian cities playing a significant role in this positive narrative. The anticipated growth in prime luxury home prices further reinforces the appeal of high-end real estate investments, providing a promising outlook for both current and prospective property buyers.