Waterfront Properties in Australia Command Forty Percent Premium

Waterfront Properties in Australia Command Forty Percent Premium Manish Khanna
Manish Khanna
Wednesday 20 Feb 2019

Who doesn’t want to live by the bay! The calming sound of the waves, the glimpse of the tangerine-hued twilight sky above the turquoise waters, and the cool breeze at night – all of these make up a fantasy lifestyle. When you are in Australia, it is not hard to turn this dream into a reality as the country is home to the most beautiful beaches in the world. With more and more premium properties surfacing in the metropolitan cities of the country, the waterfront houses are becoming the highest grossing structures.

The extravagance of living close to the Harbour or the beach or lakes gives these lavish properties a touch of magnificence and brilliance. Naturally, the waterfront luxury properties for sale in Australia are on the wish-list of every high-net-worth home buyer. It has made the prices shoot through the roof with Sydney running past every other city in the world.

 The Global Report Brings Australia On Top

According to a global waterfront properties report, five Australian cities are topping the charts with highest prices being fetched for Harbour-side houses followed by those which are close to the beach and then those which lie near the rivers and the lakes. Sydney, Gold Coast, and Perth are the top three contenders in the global list which includes other premium destinations like Dubai, Paris and Hong Kong.

Such properties always fall in the highly desirable segment even when the sector is facing a downturn because of their picturesque location and scarcity of such facades across the world. The prices of the frontline properties near a water body are 40% higher than similar houses elsewhere in the city. Sydney has taken the top spot once again with properties offering commanding views of the Harbour Bridge and the Opera House.

The extent of demand can be determined from the fact that the Fairwater mansion was sold for approximately $100 million in Point Piper last year. The skyrocketing cost of the property can be attributed to its 1.121ha of harbour-front land. The striking waterscape and the splendid vistas entice the rich and the famous to the shores and make them willingly shell out millions of dollars without thinking twice. Here are the reasons that make these properties sell like hotcakes in Australia and the rest of the world.

 Surging Demand and Supply

The price tags are determined by the demand and supply of a property. Since the waterfront properties are rare in Australia, their demand is higher and supply is lower. New developments have not yet tapped into this segment with a vengeance. Although there are a whole lot of beaches in the country, it is not possible to build homes on every shore. Sydney is the most sought-after destination among luxury home buyers because of its high standard of living, highly stable economy and luscious views of the Harbour.

There is no doubt that most of the top luxury real estate in Sydney is located near the water. The additional advantages of living here are that Sydney is world renowned for its vibrant New Year celebrations on the Harbour Bridge, the Yacht race on Boxing Day, and the stunning sights of the blue water which transport onlookers into another world. Also, the reason for the rising demand is that waterfront properties are not affected by the recession. Their resale value is always high, and thus they make a sound investment. The seasoned buyers pick a frontline house because it secures their future and ensures a reliable exit strategy. 

 Prestige and Emotional Value

The most ostentatious inland homes cannot replicate the lifestyle enjoyed by people living near the coastline. Besides offering a quaint and tranquil environment, the beach houses provide access to a plethora of water sports activities. Basically, it allows you to live the beach life every day with the benefits of sunbathing, boating, swimming, yachting and a lot more. The pristine waters and sun-bleached sand take away all the worries and let you enjoy a lavish life which is displayed from far away.

The waterfront properties are like trophy homes for investors who yearn for an opulent setting that is full of mesmerising sunsets, scintillating sunrises and calming day-time. It means that you do not have to spend extra on holidaying in an exotic location as you live in a holiday destination. It helps you to save cash on adventurous activities and expensive vacations. 

 Size of the Water Body

The prices rise with the size of the water body lying in the proximity of the property. If it is a Harbour side house, the price will be the highest, and if it is a like view house then the price will be lower. This is the reason why property in Sydney is costliest as compared to Gold Coast and Perth. Although the prices for million dollar homes have taken a drop in Sydney and Melbourne, the waterfront properties are still riding high.

Homes with private beaches are the most expensive ones as they have direct access to the water and can be utilised for leisure in whichever way the buyer wants. The temperature and air quality also play an important role in deciding the price of the property. Scorching sun and pollution can become a big roadblock in selling these homes.          

 Peaceful Living Requirement

The chaotic and stressful lifestyle of today’s generation calls for some time away from the noise and gridlock. This can be easily achieved in a waterfront property. The serene vistas and the relaxing atmosphere create a refreshing and revitalising environment that fills people with a renewed vigour to embrace each day with a smile and calm mind. Many seek the waterfront properties for their physical and psychological well-being which has become a top priority for high-net-worth individuals whose professional lives are full of pressure and anxiety as they deal with millions of dollars every day.        

 Endnote

So if you have decided to invest your money in waterfront luxury real estate for sale in Australia, then you have chosen wisely. The next step is to pick a neighbourhood which resonates with your preferences and take the final plunge. You are surely going to have the time of your life on a beachfront.