The mention of the name Sydney is enough to make people think about a world-class metropolis offering stunning views of the Harbour and a glamorous lifestyle. Attracting thousands of travellers and immigrants every year, the astounding capital of New South Wales is the most populated city in Australia. A goldmine of lavish residences and apartment units with breathtaking views, it has always been among the hottest destinations for home buyers.
If you are looking for luxury properties for sale in Australia, then Sydney has to be on your wish-list as it surpasses all other cities in terms of extravagance. Substantiating this keen interest of investors in the city is the fact that it is home to the country’s most in-demand prestige property market. Sydney and Melbourne continue to dominate the high-end property segment across the globe, with the most significant gains in the past decade.
These cities have remained unharmed by the global financial slowdowns and the recent disasters like the devastating bushfires and the ongoing coronavirus scare. Let us take a look at what makes it an undisputed leader in the market.
Reports Forecast A Good Growth
The luxury property price predictions for 2020 indicate a 4% rise in the prices of Sydney homes, which is higher than Melbourne’s 3% and 2% of Brisbane, Perth and Gold Coast. Also, Sydney happens to be the top-ranked Australian city among all the others at 27th position in the global index, followed by Melbourne placed at 44th position and Gold Coast at 55th position.
Brisbane and Perth stand close at 57th and 63rd positions respectively. These ranks have been assigned according to the performance of the prime residential markets in these cities in the past twelve months. The prices have amplified in the past year as the interest rates have been lower than expected and the supply has been limited.
The interest rates were further cut down by the RBA due to the impact of rising coronavirus cases on the world economy. Besides the rate cut, the pipeline of new extravagant houses in Sydney is also constricted as many constructions are still underway and various properties are being utilised for other purposes.
However, the supply has been slightly better in Melbourne, but the rising demand keeps the prices from plummeting. Since the number of high net-worth individuals is growing in these cities, the demand is also increasing.
Auctions Continue To Thrive In The City
Although the world is reeling under the threat of Covid-19 at the moment, Sydney’s housing market is showing no signs of slowing down. While most are concerned about the impact of the virus on the luxury property market in the country, things are looking bright as affluent buyers are doling out millions of dollars for upscale properties in Sydney.
Most of the auctions that took place in the metropolis in the recent few months have generated excellent returns for the vendors. An expensive apartment overlooking the Lavender Bay was sold for $1 million while a posh house on Cliff St in Milsons Point was snapped up for a staggering $8 million. The attendance at these auctions was close to a full house, and the bidding was in full swing to grab the hottest high-end properties.
Besides families, the highest bids came from builders who want to create new aristocratic residences in the place of the existing old properties. The market is still very competitive, and the opulent homes are ruling the roost with growing demand from all corners.
The affluent investors understand the worth of these properties and are not shying away from emptying their pockets to get a piece of this magnificent hinterland. All the 500 auctions in the city were a success, and even suburban homes have been fetching prices beyond expectations.
The Rise Of The Ultra-Wealthy
The pandemic and the bushfires might affect the economy and lead to loss of jobs, which can affect the housing sector. However, the luxury property market seems to be unaffected as per the reports and the recent auctions. Also, the population of the ultra-rich is only going to increase in the coming years, which will not let the prices go down. It has been estimated that the wealthy population will grow by 20% by 2023 in the city.
The onslaught of sales during the holiday season and the New Year had boosted the confidence of the buyers, and the enquiries have gone up in 2020. With no trade disputes in the region and the comfort of the English language, many well-off immigrants are planning to settle down in the region in the coming years.
The reason behind the influx of prosperous immigrants is their quest for a high standard of living, peaceful neighbourhoods, stable government, investment opportunities, thriving commercial sector and ease of international travel. Also, Sydney offers access to some of the best restaurants, bars, hotels, sporting facilities, educational institutes, and much more. Naturally, people are flocking to the city in huge numbers.
Waterfront Properties Remain A Major Draw
The interest of offshore buyers is stronger than before, as Sydney offers the best waterfront properties with a splendid lifestyle. The most sought-after properties remain the homes located in the plush areas of Sydney Harbour, coastline and the Middle Harbour as they are known to provide the highest capital gains.
The waterside apartment units are also immensely popular among the younger generation which wishes to enjoy the amenities offered by these buildings, such as pools, gyms, indoor sports, security, etc.
The waterfront properties have been generating the highest premium all over the world and investing in Sydney seems like a lucrative proposition for investors. The low-interest rates, stable socio-economic environment, multi-cultural communities, adventurous lifestyle, mind-blowing attractions and natural splendours add to the charisma of the place.
It is obvious that home buyers are getting affected by the global economic downturn and the recent wake of events which have been less than promising. However, the luxury property market in Sydney seems to stay unaffected. Thus if you are planning to invest in luxury real estate in Australia, then Sydney is a safe bet that will bring high returns on investment in the coming years.