Sydney and Melbourne are among the world’s top 15 fastest growing luxury home markets, a report has found.
Knight Frank’s 2018 Wealth Report found that despite the easing price growth across Sydney, the prime market still managed to record double digit annual growth in 2017.
According to the report’s Prime International Residential Index, Sydney recorded a 10.7 per cent annual growth, leading it to rank 9th out of 100 cities – up from number 11 last year. Melbourne recorded a 9.8 per cent annual growth, placing 14th this year compared with 12th last year.
“Although Sydney’s mainstream residential market has cooled, in part due to tighter lending rules for investors, the prime end experienced strong growth of close to 11 per cent in 2017 as a lack of stock, in particular detached homes, put pressure on prices,” said Knight Frank partner Kate Everett-Allen.
Another Australian city which made the list is Perth, which ranked 55th with 1.3 per cent growth. It is the first time in years that Perth recorded a positive annual growth, revealed Michelle Ciesielski, Knight Frank’s head of residential research for Australia.
“Perth’s prime property market is up from -6.4 per cent last year,” Ciesielski said. “The worst is obviously behind … we are seeing local buyers re-entering that prestige market and also our agents are also getting more inquiry from Melbourne and Sydney buyers.”
The list’s top spot went to Guangzhou, which saw more than 27 per cent increase in luxury property prices. The second and third place went to Cape Town (19.9 per cent) and Aspen (19 per cent) respectively.