Gold Coast is a Top 100 high growth luxury market
The prestige property market on the Gold Coast has been going gangbusters over the past 12 months with record price growth across the city.
But how does that performance rate on a global scale?
Knight Frank’s The Wealth Report 2021 provides a barometer of luxury residential prices across the world’s top 100 residential markets over the past year.
The Gold Coast is one of five Australian cities – including Perth, Brisbane, Sydney and Melbourne – whose price performance ranks in the top 100 luxury residential markets globally.
Perth was the top ranked Australian city at number 34 with 3.6% annual growth, the Gold Coast was second at 36 (with annual growth of 3.2%), followed by Brisbane at 44 (2.5% growth), Sydney ranked 56 (1.1%), while Melbourne came in at equal 63 with Oslo (0.9%).
The Knight Frank report found that the Gold Coast also offers luxury buyers more bang for their buck – US$1 million buys 126m2 of luxury internal floor space, versus say Sydney where you get 45m2 (Monaco and Hong Kong are the world’s priciest residential markets, with US$1m buying 15m2 and 23m2 respectively as at the end of 2020).
Relative values for prime property in Australia weakened over 2020 as a result of the strengthening Australian dollar, according to the report, with US$1 million buying fewer square metres in each city than it did one year ago.
Global travel bans have seen more of Australia’s luxury buyers build their property portfolios on home soil, buoyed in part by the country’s bullish stock market and record low interest rates.
Much focus has centred on Queensland – and in particular the Gold and Sunshine Coasts – as buyers chase lifestyle upgrades in proximity to sand, surf and green space.
A deep dive into purchasing habits of Australia’s ultra net worths (AUNW) found that:
- Those purchasing a new home in 2021 list outdoor space and leisure facilities or amenities as the most important attributes;
- 22% of the wealth of AUNW individuals is directly allocated to property for their principal and second homes where they and their families spend, while on average 24% is directly allocated to a property investment portfolio;
- 15% of AUNWs bought a new home in 2020 and 16% plan to buy one in 2021;
- AUNW are most likely to buy a new home locally and purchase a second home in the US, New Zealand, the UK and then Israel.
- Ultra high net worths from overseas list Australia as a No.3 destination in which to buy a property behind the UK and the US.
Further price growth is forecast for the Gold Coast in 2021 – 3% according to Knight Frank’s report – with the full impact of open international borders on property prices yet to be seen.
In a trend that’s set to continue across 2021 and beyond, we’re already seeing more high net worth buyers purchasing a second home – or a co-primary home – in beachside or leafy areas.
These homes provide a luxurious space in which to retreat during future lockdowns, a place to ‘holiday at home’ or a handy hub for those commuting to a capital city office for work.
It’s an exciting era in Gold Coast real estate, particularly for those looking to capitalise on a strong market, expand your investment portfolio or upgrade your lifestyle.
Our team is working closely with sellers and buyers from the Sovereign Islands through to Byron Bay. If there is anything we can do to progress your real estate goals, please do reach out.