The high-end property markets in Perth, Brisbane and the Gold Coast are outperforming the powerhouses of Melbourne and Sydney.
The Knight Frank Wealth Report shows prestige property in three of Australia’s smaller markets are doing so well they have made big inroads into the Prime International Residential Index, which tracks the best 100 residential global markets.
Surging demand is coming from those looking for a lifestyle amid the COVID pandemic and with low interest rates to accompany them, buyers in Perth, Brisbane and Gold Coast have driven prestige prices there up more than 2.5 per cent in 2020.
That has all three sitting in the top 44 of prestige markets, while Sydney is 56th and Melbourne sits at 63rd.
Perth was the standout in the country, with a booming resources sector and desirable lifestyle having them sit at 34thglobally, which was a very quick turnaround after years of stagnation.
Head of residential research at Knight Frank, Michelle Ciesie, told Domain Australian cities have always done well on the PIRI Index but the pandemic has driven buyers of high-end homes to smaller cities with better value for money and a better lifestyle.
“During the pandemic, people reassessed their priorities … it made us re-evaluate how we want to live over the long term,” Ms Ciesielski said.
“COVID-19 was handled well in Australia, with a brief lockdown in all cities except for Melbourne, and when our cities were opened up, we saw a surge in pent-up demand, particularly as home owners re-evaluated their lifestyles.”
“Before COVID, people wanted to live close to where they worked, but since then that’s changed … grounded by travel bans, Australia’s luxury buyers focused on building their property portfolios at home, buoyed in part by the country’s bullish stock market and historically low interest rate environment.”
Ms Ciesielski said the trend towards these smaller cities was sticking around for the rest of 2021.
“Absolutely that growth with these three cities will continue until the end of this year … when we’re looking at lifestyle, it was by far the most important thing on people’s minds, and that’s not going to go away,” Ms Ciesielski told Domain.