The latest Knight Frank Prime Global Index Report reveals Brisbane has now overtaken Melbourne and Sydney as the top city for luxury residential property growth in Australia. The luxury residential market in Brisbane has risen 3.2% within the last year, landing our humble River City in 14th spot of the global ranking. Brisbane also outshone some of the world’s richest cities, including the likes of New York, Los Angeles and Miami in the US, as well as a slew of major European cities like Stockholm, Vienna, Milan and Monaco, as well as London, whose property markets have been unstable as a result of Brexit.
The report analyses the luxury market growth rates in 45 of the world’s top cities, with Brisbane making its first foray in this list at number 19, in Q1 2018. By the end of last year, Brisbane sat only one spot behind Sydney, which previously held the title of Australia’s luxury growth capital. In the latest report, Sydney sits at 18th with a luxury market growth rate of 2.4% and Melbourne at position 22, with a growth rate of only 1.8%.
Global cities to outshine Brisbane include Tokyo, Delhi, Beijing, Manila and Singapore, along with several European cities (Frankfurt, Edinburgh, Paris, Zurich, Madrid and Geneva). The top two spots, both recording annual percentage increases of over 10%, were awarded to Berlin and Moscow.
Knight Frank defines the luxury residential market as the top 5% of the housing market by value. The strong growth rate of luxury home and new-build apartments is an indicator of a high proportion of owner-occupiers in the market and a proportionally lower percentage of international investors who tend to snap up the mid-range stock. Brisbane’s increase can be seen as a mirror of the market trends were already knew were progressing strongly through the first half of 2019, with downsizers and empty-nesters dominating the market. Downsizers to a smaller property with less maintenance and upkeep leaves buyers with more bang for their buck, leading to the increased purchasing of more luxury-style residences.
The latest Knight Frank report also predicted that over the next 5 years, the number of millionaires created in Brisbane would triple to three people daily. This will create a much larger percentage of the population pulling out their cheque books for Brisbane’s luxury residential property stock. As a result of this, the market as a whole is likely to continue to focus on providing high-end owner occupier product, with designer additions, sought-after features and resort-style amenities. If you’re in the market for a luxury home, townhouse or apartment over the next 5 years, there are bound to be countless options cropping up throughout the city, and there won’t be any shortages of this type of product as developers jump aboard the luxury property bandwagon.
You can read the Knight Frank Prime Global Index Report in its entirety here.