Brisbane, Gold Coast Among World’s Best Luxury Cities: Study

"It is no surprise that a lot of Australians choose to move to Brisbane and the Gold Coast from other states. We live in a great city that we shouldn't take for granted." - Matthew Lapish, Senior Investment Analyst, Inception Wealth Group

Four Australian cities including Brisbane and the Gold Coast have been named among the top 60 luxury residential markets in the world.

Brisbane emerged in 57th spot, the Gold Coast was two spots higher (55th), while Melbourne came in at 44 and Sydney was Australia’s best performer slipping into 27th place.

This was off the Prime International Residential Index (PIRI 100) in the Knight Frank Wealth Report 2020, released midweek.

Knight Frank prestige residential sales director, Jason March, said Brisbane was now into its 26th quarter of uninterrupted annual capital growth.

“Over this time, Brisbane prime residential values have grown by 37.7 per cent, while mainstream property values only saw total growth of 13.4 per cent, with the latter impacted more severely with the tightened lending measures implemented by APRA over this time.”

“The Brisbane prime residential market has been boosted by interstate buyers, particularly from Sydney and Melbourne, looking to secure a prestige home with money still left in the bank to decorate and travel, paying significantly less than they currently would in the southern east coast cities."

He said greater affordability helped local buyers too “with many downsizing from the large family home further from the city into a well-appointed luxury apartment closer – or in – the CBD”.

Monaco was still the world’s most expensive city, with $1m buying just 16.4sq m of accommodation – the equivalent of a bedroom. This is followed by Hong Kong and London.

The index tracked luxury residential prices in 100 cities and second home markets across the globe between December 2018 and December 2019.

Tight supply of luxury homes drove growth above the global average of 1.8 per cent in Sydney, according to Knight Frank residential research head Michelle Ciesielski.

The Gold Coast grew 1.8 per cent, while Brisbane was up 1.4 per cent, Sydney 3.7 per cent, and Melbourne 2.2 per cent over the year.

“Despite record low interest rates and wealth growth continuing in most advanced economies, there were some factors preventing global price growth from reaching previous highs, including the slowing global economy, rising property taxes and in some cases, a surplus of luxury homes on the market,” Ms Ciesielski said.

She said 78 of the 100 locations in PIRI registered flat or positive growth in 2019.

The best performing luxury market in the world last year was Frankfurt (10.3 per cent) followed by Lisbon (9.6 per cent). South Korea’s Seoul was strong too (8.9 per cent).

“Gone are the days of 30% annual growth in China’s metropolises; Seoul and Taipei are now the region’s frontrunners with annual growth of almost 9 per cent and 8 per cent respectively,” a Knight Frank statement said.

Source: https://www.realestate.com.au/news/brisbane-gold-coast-among-worlds-best-luxury-cities-study/

Foster, S. (2020, March 5). Brisbane, Gold Coast among world’s best luxury cities: Study. Retrieved from https://www.realestate.com.au/news/brisbane-gold-coast-among-worlds-best-luxury-cities-study/