This article is from the Australian Property Journal archive
SYDNEY waterfront properties are more popular than ever, as Australian cities dominate the top five spots in the Knight Frank’s International Waterfront Index.
Australian cities took up three of the top five positions on the index, with Sydney harbour properties taking the number one slot, pulling in an average premium of 121% on equivalent homes not on the water.
“Regardless of the season in Sydney, there is always strong appetite for waterfront homes, especially those with uninterrupted iconic views of the Sydney Harbour Bridge and Opera House,” said Michelle Ciesielski, head of residential research at Knight Frank.
“A waterfront property also offers the potential for maritime facilities, and we’ve seen elevated enquiries since the pandemic. There’s only a limited number of prestige properties on the harbour due to nature reserves and parklands.”
Auckland in New Zealand came in second place, with a premium of 76%, followed closely by the Gold Coast with 71% and Perth with 69%, while The Cap d’Antibes peninsula in the South of France rounded out the top five of the 17 locations named.
“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,” added Ciesielski.
The average international premium for a waterfront property reached 40% in the second quarter of 2022, with beachfront properties the number one in-demand location, with an average premium of 63%.
Harbour locations followed very closely behind at an average premium of 62%, with coastal locations brining in an average premium of 40%.
“Globally the pandemic has led to a fundamental reassessment of housing and lifestyle requirements. For many being near the water with more space and greenery has been a primary driver, and with supply limited in all markets this has supported price growth and premiums,” said Chris Druce, senior research analyst at Knight Frank.
Knight Frank also highlighted that in the wake of the first two years of the pandemic and long lockdowns globally, ample greenery and space are key drivers for buyers.
Such demands in prime regional markets has not only spurred sales results but when paired with low supply has placed upwards pressure on price growth.
With the year to June 2022 seeing the average price growth for waterfront property on the index at 10.9%, compared to an average increase of 9.8% in the UK, for example.
“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,” said Ciesielski.
Knight Frank’s Global Buyers Survey also revealed that 42% of buyers were more likely to purchase a waterfront property after the impacts of the pandemic.
