Prices for luxury residences in Australia soar, undeterred by global outbreak

The Knight Frank Prime Global Cities Index has just named the Australasia region as the strongest performing region in terms of price growth of luxury residences across the world, reported the Australian Broker.

Knight Frank monitors changes in residential prices in 45 cities worldwide. In the year up to the second quarter of 2020, Brisbane, Gold Coast, Melbourne, Perth and Sydney were included in the top 24 list for best performing luxury residential market in the past 12 months.

Among these five cities, Gold Coast was the highest ranked, rising to the 10th spot with a 3.4 percent annual growth.

“Knight Frank’s analysis by world region shows prime prices in Australasia and North America were the most resilient in the second quarter of 2020, with Australasia the strongest performing world region,” said Michelle Ciesielski, the head of residential research Australia at Knight Frank.

“The relatively strong performance of Australian cities was a result of the shallow number of listings, keeping property prices firm. By global comparison, we have largely escaped the major impact of COVID-19.”

Even in the wake of the pandemic, particularly in June, 67 percent of cities across the globe recorded annual price growth of either flat or positive.

As for Australia’s ranking in the study, the Gold Coast was followed by Sydney at 11 and then Perth at 12, with both these cities documenting a three percent increase. Brisbane came in at 16th with a 2.5 percent annual increase and Melbourne at 24 with 1.2 percent increase.

Shayne Harris, the national head of residential at Knight Frank, said that they expect the demand for luxury residences in the country to grow.

“During the pandemic, we’ve seen the ultra-wealthy make their next residential property purchase decisions based on liveability so places like southeast Queensland will become more attractive in a post-COVID world.”

Ref: apa