Australian Cities Included in Prime Residential Locations List

The latest Prime International Residential Index (PIRI 100) from Knight Frank has revealed that two Australian cities, Sydney and Melbourne, are placed in the the list of top 20 residential locations.

The PIRI 100 list tracks the value of luxury homes in 100 locations across the world. It found that Australasia was the strongest-performing world region in 2016, with prices rising by 11.4% year-on-year. 

Auckland apparently led the way in this region, with a lack of supply, rising demand and record low interest rates all combining to fuel house price growth, leading to prime prices ending the year 16.0% higher.

Despite the introduction at state-level of a higher rate of stamp duty for foreign buyers, Sydney and Melbourne both recorded strong price growth of 9.3% and 8.8% respectively year-on-year, placing them in 11^th and 12^th spot on the PIRI 100 list.

“In Sydney and Melbourne over the past 24 months, demand for prime property continues to outweigh the limited supply being brought to market in both the established and new supply markets,” explained Michelle Ciesielski, Knight Frank’s Director, Residential Research Australia. 

“Locally, retirees and those approaching retirement are still taking advantage of this supply gap in the market, achieving elevated prices for their family homes and downsizing to a low-maintenance property,” she said. 

“The expat dollar is still favourable, and many are securing their ideal home for when they return to Australia,” she added. “Foreign interest in Australian prime residential property has remained relatively strong throughout 2016, with many currencies holding an ongoing purchasing power against the Australian dollar.”

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Sources:

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