Sydney Luxury Prices Set to Grow at Second-Highest Rate Globally in 2022

Luxury property prices in Sydney are expected to climb by nine per cent next year, making it the second-highest city for prime price growth in 2022, trailing only Miami at 10 per cent.

That is according to Knight Frank’s Prime Global Forecast data on prime property markets around the world. Under Knight Frank’s model, prime property is defined as the top five per cent of each market by value.

Sydney is expected to have prime residential growth of 12 per cent by the end of 2021, up from 10.7 per cent in the year to Q3 2021.

This is consistent with other worldwide cities, according to Knight Frank’s Prime Global Cities Index for Q3 2021, which shows that 33 per cent of global cities had a price rise of more than 10 per cent year-on-year.

The reopening of borders, the return of investors, and the increased appetite among domestic purchasers for second homes on Australian soil, exacerbated by recent lockdowns and travel bans, will drive up values across the country.

 Although Sydney’s mainstream market has rebounded to record 24% annual growth in the year to Q3 2021, the prestige market has experienced a lengthier run of upward trajectory in prices as this market advances in line with other developed global cities.

Knight Frank’s Head of Residential Research Michelle Ciesielski said.

This tendency is worldwide, with Knight Frank statistics revealing that 84 per cent of global cities witnessed yearly increases in prime prices, with this proportion increasing each quarter – indicating that this trend is continuing to gain traction.

Sydney was not the only Australian city to perform well in the prestige market in the year leading up to the third quarter of 2021. In the Prime Global Cities Index Q3 2021, all five major cities scored in the top 23, out of 45 global cities, averaging 9.3 per cent annual growth – however, this is still less than the global index’s average rate of growth of 9.5 per cent.

Contributing to Sydney’s prime values, the super-prime market is performing exceptionally well with many suburban records being achieved in excess of A$10 million, especially for those homes located close to the water.

Ciesielski said.

While Sydney saw a 10.7 per cent annual increase over this period, the Gold Coast and Perth trailed with double-digit growth of 10.5 per cent and 10.4 per cent, respectively. Brisbane grew at an 8.4 per cent annual rate, whereas Melbourne grew at a 6.5 per cent annual rate.

Following Sydney’s prime estimate of nine per cent in 2022, the Gold Coast’s prime residential market is expected to increase by eight per cent, while Melbourne is expected to rise by seven per cent, followed by Perth and Brisbane at six per cent.

Pin It on Pinterest

Share This

Love our content?

Share this post with your friends!