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Sydney, Melbourne and Auckland top spots for luxury investment in Australasia

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The returns from luxury property development are on the rise the world over and 3 Australasian cities are leading the trend down under. 

Global property consultancy​ firm Knight Frank recently released its Prime International Residential Index (PIRI) for 100 cities. According to the figures, prime property owners in in Auckland, Sydney and Melbourne gained with an annual price growth of 12, 11 and 8.5 per cent for each city respectively

The research was based on a case study that estimated the number of square metres of luxury property that US$1 million could buy around the world over. While Monaco offered a 17 square metre nook for the price, Sydney allowed 41 square metre and Melbourne more than doubled the space with 117 square metre. 

The scorecard was dominated by 4 US cities appearing in the top 10. In sharp contrast to this, Asia which was a strong contender with 4 cities in the top 10 last year was represented only by Bali in third place.

Knight Frank's Head of Research and Consulting Matt Whitby said Australasia presents a fascinating prospect to Asian buyers. They consider the region's development feasibility to be perfect - a safe haven with lifestyle, a stable education sector and solid investment opportunity. 

"Wealthy Chinese investors have been dominant, exemplified by Australia's Significant Investment Visa (SIV), which, since it was introduced in 2012, has seen 90 per cent of its applicants come from China,"  he added.

According to Mr Whitby, the world's largest residential developers want to continue diversifying in to new markets. Investors from China, India, Hong Kong and Malaysia are constantly eyeing opportunities to venture into new projects. He predicts Chinese buyers will be looking to invest in Australia's Gold Coast and US west coast. However, nationality will be no bar for investors in New York and London. 

Date Published: 10 Apr 2015
Category: General News

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