This article is from the Australian Property Journal archive
WATERFRONT homes in Sydney bring in the highest premiums globally, retaining the top position for another year.
According to Knight Frank’s Global Waterfront Index, which looks at eight global cities, with an average premium of 118% Sydney again held the top spot, despite seeing a marginal decline from 121% in 2022.
“In Sydney, there is an ongoing immense shortage of prestige homes being listed for sale across Sydney prime regions, including on the waterfront, with many still selling off-market and before any form of marketing takes place,” said Michelle Ciesielski, head of residential research at Knight Frank.
“There are only a handful of new projects in Sydney under construction which enjoy a water view of the Sydney Harbour Bridge and Opera House, but even less with an absolute waterfront.
Sydney’s waterfront property premium more than doubled the city in the number two spot, with Auckland’s premium at 58%, while the global average across the eight markets came in at 45%.
“Tight building restrictions will limit the availability of waterfront stock, whilst on the demand side, investors vie for such homes alongside second home purchasers, given their rentability as holiday lets and above-average occupancy levels,” added Ciesielski.
“After an extended stint working overseas and often priced out of owning a home at the top-end of the market in key global cities like London, New York and Hong Kong, many expats buying in Sydney are holding off to buy on the waterfront with many attracted to the lifestyle which comes with waterfront living such as private maritime facilities on their eventual return to the city.”
Monaco came in at 42%, Cap D’Antibes at 40%, Paris at 38%, Geneva at 35%, Vienna at 15% and Hong Kong at 12%.
Beachfront homes took in the highest premium again for type of waterfront at 76%, up from 63% in 2022.
Harbour homes followed at 61%, riverside at 39% (up from 29% in 2022), coastal at 36% and lakeside at 35%.
“Looking at Crown Residences at One Barangaroo, located on the iconic Sydney Harbour, has made up 79% of Sydney’s total super-prime CBD apartment sales since March 2021,” said Ciesielski.
“The desirability of waterfront homes and the potential they offer as an inflation hedge alongside capital preservation is likely to see demand swell further given the current economic backdrop.”
