Despite the economic downturn, the number of ultra-wealthy Australians is expected to continue to increase over the next five years, which will boost demand for luxury real estate, according to Knight Frank's latest report .
By 2023, about 613 people will join the group of very wealthy people (UNHWI), whose individual net worth exceeds $ 44.8 million.
The growth of the ultra-rich population should be fueled not only by the strength of the stock and bond markets, but also by the strong growth in real estate prices over the long term, said Michelle Ciesielski, head of research at Knight Frank.
In fact, over one-third of Australia's super-rich total wealth comes from residential properties, each with an average of three homes.
"The ultra-rich do not necessarily look for a single house, they tend to have the main house of the family, the city and the rural estate," said Ciesielski.
Sydney will remain the most wanted place by the UNHWI. According to the Knight Frank report, the city 's residential selling price is expected to increase by 2% by the end of the year and an additional 3% next year.
Melbourne will remain the second destination of the ultra-rich, followed by Perth.
Ciesielski said the main residential market was poised for sustained and robust growth, despite global uncertainties that could potentially affect confidence.
"We believe that the prestige market still has some way to go, and the market indicators of the primary market remain strong," said Ciesielski.
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