- Knight Frank ranks Sydney as the ninth highest market globally for sales of real estate valued at over $10m.
- In Q1 2023, Sydney had 10 high-value sales transactions of over $10m.
- This spike of transactions over $10m reveals that high net-worth individuals (HNWIs) are attracted to Australia’s real estate market despite the global real estate market, still recovering from the Covid-19 pandemic.
According to Knight Frank’s 2023 Global Super-Prime Intelligence report, the Australian real estate market has experienced a turnaround, with Sydney’s property market seeing one of the highest price increases.
This surge in transactions over $10m signals increased confidence among HNWIs in the market, with international property investments yielding a significant return.
Knight Frank’s report examines residential sales of $10m or higher in 12 markets, and states that Sydney has ranked ninth in the world for its number of super-prime sales over the past 12 months.
From March 2022 to March 2023, there were 76 super-prime sales in Sydney, positioning it above Geneva (63), Orange County (54) and Paris (26).
The total value of super-prime property sales in Sydney for 12 months was $1.2bn, with a mean sale price of $16.2m.
Erin van Tuil, Head of Residential at Knight Frank in Australia, observed that Sydney’s super-prime real estate market has evolved over the past five years. She said that it would likely draw in more international purchases from HNWIs, a fundamental driver of global super-prime sales.
Van Tuil suggested that domestic purchasers are typically the primary buyers in cheaper markets, while international investment is more crucial in pricier markets, with international HNWIs happier to invest in overseas property.
Data derived from Knight Frank’s report indicates that since 2020, Sydney has surpassed the desirable location of Orange County on the US West Coast regarding the amount of super-prime properties sold yearly.
The super-prime sales ratio in Sydney is increasing quicker than in Los Angeles, as well as Orange County, with a continued interest coming from overseas HNWIs looking to make international payments.
Dubai also saw a remarkable surge in these sales, outstripping London to reach 17%, up from just 2% the year before.
In Q1 2023, global super-prime sales increased by 11%, with the total global residential sales reaching $30.2bn compared to the previous quarter.
Although the global housing market has plateaued since the Covid-19 pandemic, HNWIs continue to search for luxury homes and investment properties overseas.
HNWIs looking to invest in Sydney’s burgeoning real estate market should utilise a safe money transfer service when buying property.
HNWIs searching for luxury homes overseas can use our money transfer comparison tool to find the best available exchange rates.
