Sydney’s waterfront property market has cemented its claim as the world’s most desirable, taking the top spot in a global survey.
The NSW capital was named top of Knight Frank’s International Waterfront Index, which measures how much of a premium is being paid for waterfront properties in cities globally.
The premium price is 121 per cent for Sydney, one of three Australian cities in the top 10 with Queensland’s Gold Coast third and Perth in fourth with 71 per cent and 69 per cent respectively.
Second was Auckland in New Zealand at 76 per cent and fifth Cap d’Antibes on the French Riviera at 59 per cent.
The average international premium for a waterfront property was 40 per cent in the second quarter of 2022 compared to the average for a non-waterfront property.
The average price increase for a waterfront property in the 12 months prior to June 2022 was 10.9 per cent.
The index was put together via Knight Frank’s Global Buyers Survey, which also reported that 42 per cent of respondents said they were more likely to buy a waterfront property due to the pandemic.
With greenery and space at the top of the list of criteria after pandemic restrictions and lockdowns, sales and prices have grown in regional and waterfront markets with low supply creating pressure on pricing.
A waterfront property on the market in Sydney, which has topped a global list of waterfront properties attracting the highest premiums.
Knight Frank head of residential research Michelle Ciesielski said these properties often came with increased security and privacy but were also more affordable on the Gold Coast.
“Increasingly more buyers of waterfront homes on the Gold Coast are coming from the relatively more expensive cities of Sydney and Melbourne, so record prices are being achieved, most notable since the start of the pandemic,” she said.
Ciesielski also said that Sydney has long outperformed other cities.
“Regardless of the season in Sydney, there is always a strong appetite for waterfront homes, especially those with uninterrupted iconic views of the Sydney Harbour Bridge and Opera House,” Ciesielski said.
“Resort style waterfront homes offering heightened security and privacy, continue to perform well in the Sydney prestige market.
“These homes are still attracting demand from both domestic and international buyers, including expats from Hong Kong, the US and the UK.”
Beachfront property was most sought after with a 63 per cent premium, with harbour located properties at 62 per cent in premiums and coastal properties at 40 per cent in premiums.
Originally published in the Urban Developer. View article HERE.