Sydney housing market is showing no signs of slowing down with it tipped to outperform every other global property market.
New research from Knight Frank revealed luxury residential prices in Sydney were forecasted to rise 10 per cent this year, making it the world’s leading city for luxury price growth.
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The projected growth was double that of Miami, which set to be the second strongest market. Knight Frank’s annual Prime Global Forecast 2021/2022 found Australia’s closed borders had seen our wealthiest citizens splash the cash at home instead of abroad.
1 Wingadal Pl, Point Piper sold three months ago for about $40 million.Source:Supplied
The first quarter of 2021 saw 1429 prime sales recorded, the highest quarterly figure on record for Sydney and despite recent lockdowns momentum is being maintained.
Knight Frank Australia head of residential research Michelle Ciesielski said Sydney’s prime residential market had recorded positive annual price growth every quarter since March 2013.
“It demonstrates the ongoing under supply of luxury prestige homes being built while our ultra-wealthy population continues to rise,” she said.
Sydney was tipped to outperform every other luxury market in the world. Picture: AAP Image/Sam Mooy.Source:AAP
“Many of our ultra-wealthy clients are now embracing the low interest rate environment to expand their property portfolios further, as they redirect funds into their business interests, the stock market and other investments.”
Miami was predicted to be the next strongest luxury market in the world for 2021 with 6 per cent growth, followed by Los Angeles, Hong Kong and New York with five per cent.
However, in 2022, Sydney will share the top spot with London, with both cities forecast to see prime prices accelerate seven per cent year-on-year.
44 Wolseley Road, Point Piper fetched one of the highest sale prices in Sydney this year.Source:Supplied
This rise would represent central London’s strongest annual price performance in almost seven year and comes after British prime minister Boris Johnson removed the last of the country’s Covid-19 restrictions on Monday.
Ms Ciesielski said the past three consecutive quarters had resulted in the highest number of prime sales transactions on record, which pointed to there being plenty more room for growth.
“This mounting turnover suggests there is still depth in the market for 2022 especially given Australia’s international borders are likely to remain closed for the foreseeable future,” she said.
Originally published asSydney housing market to eclipse the world