Four Australian cities – Sydney, Melbourne, Brisbane and the Gold Coast – recorded luxury residential growth above the global average in the last quarter, according to Knight Frank's latest report.
Knight Frank's Prime Global Cities Index, which follows 45 capitals around the world, ranked Sydney 17th as the market for premium house growth. The city climbed one place in the rankings compared to the previous quarter and remained the leading luxury market in Australia.
Melbourne maintained its world ranking in 21st place, posting a 2% growth over the quarter. Brisbane recorded a similar gain but dropped from the overall standings from 20th to 22nd. The Gold Coast, which was included in the list only in the second quarter of the year, recorded a 1.3% growth in the price of luxury homes, ranking 26th .
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The average annual growth of luxury prices in the cities followed by Knight Frank is set at 1.1% during the quarter. Perth, which ranked 30th on the list, recorded only a slight increase of 0.6%.
Premium property price growth seems to follow stock market performance, said Michelle Ciesielski, head of residential research at Knight Frank for Australia.
"As equities are on an upward trajectory, this will likely lead to continued growth in core real estate prices," she said.
In addition, the problems affecting major residential markets do not appear to be affecting the main housing market, Ciesielski said.
"While tighter lending has allowed for the gradual correction of Australian residential markets, the prime real estate market has continued to show positive growth as market prestige has been less affected by funding restrictions throughout this period, "she said.
The table below shows the difference between quarterly and annual price gains for each city:
Australian Luxury Residential Market
City
T3 2018
T2 2019
T3 2019
Growth
Rank
Growth
Rank
Growth
Rank
Sydney
4.0%
17
2.5%
18
2.6%
17
Melbourne
2.8%
21
2.1%
21
2.0%
21
Brisbane
3.5%
20
2.2%
20
2.0%
22
Perth
2.0%
24
1.8%
32
0.6%
30
Gold Coast
N / A
N / A
1.1%
27
1.3%
26
[19459007 19459009 Source: Frank Knight 19459010 19459
Top suburbs:
Bligh Park
,
Cardiff South
,
Redcliffe
,
Goulburn
,
Willoughby East
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