- Rents for industrial properties in Australia are rising, though the rate of increase has begun to slow.
- Melbourne’s luxury real estate market is experiencing a high level of multimillion-dollar listings.
- Many of Australia's suburbs have become hotspots for wealthy international migrants, in particular those surrounding Melbourne and Brisbane.
Australia has seen a growth in demand for luxury real estate this year, with cities such as Melbourne and Brisbane, and suburbs such as Kew and Hawthorn driving sales upward.
According to Knight Frank’s ‘Australian Industrial Review Report’ for Q2 2023, industrial vacancies in Australia’s eastern seaboard cities are much lower than a year prior, with only 526,806 sqm of vacancy left.
Melbourne and Brisbane experienced a 19.5% increase in both available real estate and industrial space during the quarter, whereas Sydney reported a decrease.
Melbourne has seen the greatest rise in sale prices so far in August, with a median price for real estate 10 times greater than other Australian cities. In Q1, the city topped Expatra’s report for Australia’s top five most desirable locations for British nationals.
Australia’s suburbs have become increasingly popular with international high net-worth individuals (HNWIs) since the Covid-19 pandemic.
Luxury homes in Toorak, Hawthorn and Kew have experienced a higher number of multimillion-dollar listings, with many properties listed to sell for over A$10m.
Data from Knight Frank’s report suggests that as prices rise, luxury homes will need to include unusual features such as gyms, saunas, wine cellars and internal lifts.
HNWIs will need to use a safe money transfer method when purchasing a primary or secondary residence in Australia.
Jennelle Wilson, Partner in Research and Consulting at Knight Frank, reported that much of the rise in industrial vacancy during Q2 this year was attributable to new speculative builders.
She stated that of the East Coast vacancy, 48% is currently available for speculation and 42% is under construction, with a focus on HNWIs as the primary customers.
Wilson noted that the number of recorded sales in Q2 were equal to those in Q1. However, due to price increases, Q2 recorded a turnover of approximately A$600m within luxury real estate and industrial investment.
James Templeton, Knight Frank’s National Head of Industrial Logistics, said that the real estate market had gained a new-found confidence due to renewed real estate demand, particularly for large-scale assets and luxury properties.
International HNWIs looking to purchase a home in Australia’s luxury property market will need a secure way to make international payments between countries.
Wealthy individuals looking to purchase luxury homes overseas can use our money transfer comparison tool to find the best available exchange rates.
