Rising prices and the appreciating Australian dollar have not deterred foreign investors from buying luxury homes in Sydney and Melbourne.
The latest Knight Frank Prime Global Cities Index, covering the second quarter of 2017, ranked Sydney as the sixth fastest-growing prime housing market in the world, while Melbourne placed tenth. Sydney’s luxury home prices grew 11.5 per cent over the year to June 30, while Melbourne’s rose 9.1 per cent.
“Despite the recent appreciation of the Australian dollar at the tail end of July, the expat dollar is still favourable and many expats are securing their ideal home for a future return to Australia,” said Michelle Ciesielski, head of residential research for Australia at Knight Frank.
Despite the introduction of new tax surcharges and fees as well as stronger penalties for breach of rules, expat investors were not deterred, Ciesielski said.
“Foreign interest in prime Australian residential property has remained relatively strong over the past year, with many currencies holding an ongoing purchasing power against the Australian dollar.”
Guangzhou, China took the top spot with 35.6 per cent growth, while Toronto, Canada followed in number two with 20.7 per cent growth.