Sydney didn't make the top 10 in the Knight Frank's 2015 Wealth Report. But this year the harbour city has climbed to 8th place, inching towards London and New York, the undisputed global leaders for luxury property. Some of the driving factors of this increase are that Sydney is the city of choice for livability, working, leisure, and children's education.
The Top Ten List of Knight Frank's 2016 Wealth Report are:
- New York
- Hong Kong
Sydney also ranked number 2 in the Prime International Residential Index (PIRI) which monitors the value of the world's residential property markets. Interestingly Sydney, Melbourne and Auckland recorded double-digit annual price growth, ensuring that they all made the PIRI Top 10.
The PIRI Top Ten List are:
- Vancouver - 24.5%
- Sydney - 14.8%
- Shanghai - 14.1%
- Istanbul - 13.0%
- Munich - 12.0%
- Melbourne - 11.9%
- San Francisco - 10.9%
- Auckland - 10.2%
- Amsterdam - 10.0%
- Monaco - 10.0%
The report shows that the number of high-net-worth individuals around the world rose 60% in the last decade to 187,000. And while that pace of growth is expected to slow, the number of super-rich is likely to keep rising. The increase in the number of super-rich has implications for property.
One-quarter of the total wealth of high-net-worth individuals is in residential real estate, and 11% is in commercial property.
Australia also has a shortage of property that appeals to this class of buyer, who tends to prefer compound-style living arrangements, with a full suite of entertainment options, such as spa quarters, waterfront access for a superyacht, and sporting facilities.
'Winter House' in San Francisco is for sale