Imagine waking up to the sound of waves and enjoying splendid views of sparkling waters from your windows! The serenity and opulence radiated by waterfront properties are hard to miss. This is the reason why living by the bay is the dream of every luxury house buyer. When you think about prestige harbour-side homes, Sydney tops the list and is on the wish-list of every property-seeker.
While London, Dubai and Perth do come close to offering similar extravagance, the capital of New South Wales is a step ahead with its charming and lavish residences. Unsurprisingly, the city recently emerged as the highest premium generating region for waterfront properties across the world.
Thus if you are planning to purchase a luxury property for sale in Australia, then you must start your search with the remarkable city of Sydney. It is one of the most liveable cities in the world and is the hub of all economic and financial activities. Let us take a look at the reason behind this steep jump in prices and what does it mean.
Sydney Leads The Way Globally!
From time immemorial, people have valued being close to the water for survival and transport. In modern times, although the needs of humans have changed, the desire to stay close to water hasn’t faded. The stunning vision of the glistening water under the sun and the magnificent lifestyle it extends is desired by one and all.
There is little doubt about the fact that waterfront properties generate a 40% higher premium than their inland counterparts. Sydney ranked first among 12 global cities with waterfront properties in terms of generating the highest premium. As per the report released by Knight Frank, it generated a premium of 89.3% followed by Gold Coast, which touched 64.1%.
While most waterfront homes are similar in size and construction, the quality of life offered by Sydney takes the cake. The jaw-dropping beauty of Sydney Harbour Bridge and the Opera House is hard to describe in words. The presence of over 100 beaches in the city makes it an ideal resting place for the sun, surf and sand lovers.
It is also one of the most visited cities and is dotted with a plethora of attractions like the Bondi Beach, Taronga Zoo, Manly, Cockatoo Island, Blue Mountains and many more. The New Year celebrations and yacht race are some of its attention-grabbing events, which keep the locals entertained throughout the year. The outstanding infrastructure and transportation system of the city keeps it alive and suffices for the swelling population.
From sophisticated fine-dining restaurants to plush markets, theatres, salubrious weather and a booming nightlife, it has everything one needs to live a fulfilling life. In a nutshell, waterfront properties in a world-class city like Sydney are limited in numbers and abundant with creature comforts. So they have made their way to the top quite comfortably.
Why Is Waterfront Preferred Over Inland?
It doesn’t matter whether the house is placed next to the ocean, river or the sea. It will always score higher than an inland residence. If you just move a street away from the water, the price of the property will experience a steady decline. The reason behind this is that the people are paying extra for the view. Also, there is limited space surrounding the water, so such properties are few.
Thus when the demand is extraordinary, and the supply is not equivalent, then the prices are bound to go through the roof. The luxury homebuyers do not mind paying a premium for such trophy homes which match their luxuriant lifestyle. Additionally, these iconic properties are not affected by the downturn in the housing market.
Thus the buyers know that they are making a wise investment, which will generate huge profits even in the future. That is why it is no surprise that waterfront homes have caught the fancy of the super-rich in the country and all over the world. Consequently, the suburbs which offer beautiful Sydney Harbour views, such as Point Piper, Rose Bay and Mosman, have sold the highest number of prestige properties in the past few years.
The idea of enjoying private jetty rides and water sports is a thrilling experience for most buyers. Many Asian investors have shown an increased interest in waterfront homes because of the fact that they make home-buying decisions based on Feng Shui. As per the traditional practice, the energy produced by water is highly beneficial and brings good fortune. So most Chinese buyers are looking for waterfront homes in Sydney, which has added to the boom.
What Affects The Premium?
As stated above, the supply of these properties plays a significant role in deciding the prices. This is the reason why a city like London generates 30.4% premium as compared to Hong Kong and Singapore, which are surrounded by water and have plentiful waterfront homes. The size of the water body has a direct correlation with the amount of premium generated by the property.
Also, the position of the house makes all the difference. In places where the demand is higher than the supply, the prices are showing an upward trend and will continue to move up as buyers are astounded by the idea of owning Harbour-side homes. As a result, the ocean-view residences get more enquiries because of the striking view of the vast expanse of tranquil waters. It is followed by the beach, river and lastly by lake-view properties.
Many buyers want their properties to be right on the beach so that they get easy access to the water, and there is no question of another development coming up in front and disrupting their view. Dubai and Paris stand at 53.2% and 48% respectively among the 12 global cities and the reason for their high premium is the scarcity of new-builds in front of the water. Therefore, Sydney will be ruling the roost, and the waterfront properties will stay in the limelight.
The dazzling view of the Sydney Harbour has ensured that the city will continue to hold its position in the top spot in the coming years. Thus if you are looking for luxury real estate for sale in Australia, then investing in residences with a dual or triple view of the Harbour will be a wise decision.