Gold Coast luxury home prices rise 20%
The Gold Coast’s luxury home market has continued to outperform all other major Australian cities, with prices expected to rise another 10% this year, according to research from Knight Frank.
The Gold Coast, now one of the country’s fastest growing regions, has been inundated with wealthy buyers over the past 12 months, fueling a sharp rise in prime residential prices.
The coastal city saw median price increases of nearly 60% in some suburbs last year, creating a cascading effect in neighboring areas.
According to Knight Frank’s Prime International Residential Index, the Gold Coast has now risen from 12th to 7th position after surging 3.1% last quarter.
The city overtook Sydney in February as the country’s best-performing core market after growing 19.3% in the past 12 months.
Luxury home prices in Sydney are up 16%, Brisbane is up 11.3%, while Perth and Melbourne are up 11% and 10.9% respectively over the past year.
The growth in the population of ultra-high net worth individuals, that is, those with a net worth of $40 million or more, has supported the boom in prime real estate.
In 2021, Australia’s population of ultra-high net worth individuals increased by 10% to 20,800 people, above the global average.
Knight Frank residential research manager Michelle Ciesielski said demand for luxury homes is likely to increase further this year as the population of the ultra-rich is expected to swell.
“Rather than ‘steady and sustained’ growth, it’s fair to say that last year’s growth has been ‘stellar and dramatic’ in the core residential market,” Ciesielski said.
“Strong demand for luxury homes has seen a real race for space, with ultra-wealthy Australian buyers competing for large waterfront plots and large apartments with roof terraces, balconies or open spaces. outside.”
Index of the main world cities Q1 2022 (ranked by % annual change)
|City||Current Q1 2022 ranking (Q1 2021 ranking)||Q1 2022 annual growth (Q1 2021 rate)|
|Golden Coast||7th (22nd)||19.3% (3.5%)|
|sydney||9th (25th)||16.0% (1.9%)|
|Brisbane||12th (21st)||11.3% (3.8%)|
|Perth||13th (20th)||11.0% (4.1%)|
|melbourne||14th (27th)||10.9% (0.4%)|
Buyers flocked to the luxury real estate sector, particularly in suburbs like Miami, where home prices surged 44% to $1.2 million in the past 12 months, and Mermaid Waters , which rose 41.9% to a median of $1.2 million.
In nearby Mermaid Beach, a colossal 32.4% rise pushed home prices to a historic median of $2.07 million.
With more demand than supply, Knight Frank now expects Gold Coast luxury property prices to rise by 8% this year, Sydney by 9% and Melbourne by 7%.
“There is now widespread concern as the size of new homes has generally come down over the last few years and with significant construction delays coupled with supply chain issues, it is going to take some time to deliver,” Ciesielski said.
“It will only generate a premium on the big luxury houses for some time to come.”
Across the globe, the top city for prestige price growth was Dubai, where prices soared 58.9% in the 12 months to March.
It was followed by Miami, up 33.1%, Toronto, up 24%, San Francisco, up 23.4% and Los Angeles, up 22.8%.
Preferred prices in two of the largest residential markets in the world, London and
New York also continued to shake off political uncertainty and fiscal changes, with its major markets growing at their fastest pace in the past seven and six years respectively.
The most significant slowdowns in the last quarter occurred in the Asia-Pacific region. Wellington, Guangzhou, Shanghai and Shenzhen saw their annual growth rates fall by 17%, 15%, 8% and 7% respectively in the first three months of the year.