As buyers are looking to 'right-size' their living situations, many are snapping up luxury apartments. Knight Frank lists the best value places.
As empty nesters down-size or young couples choose apartments over houses, the luxury apartment industry is booming.
In Sydney, Barangaroo apartments ranked the highest value across the major Australian cities in Q3 2019 with a median of $2.9 million, according to Michelle Ciesielski, Director, Head of Residential Research of Knight Frank.
"Point Piper apartments followed with $2.8 million, then Millers Point with $2.4 million."
In Melbourne there was a mix across the prime suburb regions, with Brighton recording the highest median apartment value with $947,500, second was Toorak with $929,675; then Balwyn North with $917,000.
Source: Knight Frank Research
Tennyson apartments, with a median value of $1.05 million, topped the Brisbane list, with Seven Hills ($679,900) next, then Bulimba ($637,000).
Apartments in Cottesloe ($775,000), North Beach ($750,000) and Mount Pleasant ($697,500) ranked highest in Perth.
While apartments in Main Beach ($761,250), Paradise Point ($650,000) and Hollywell ($635,000) hold the highest median value on the Gold Coast.
As far as market share goes, according to Knight Frank's Rightsizing - 2020 report when analysing all prime residential sales from Q3 2016 to Q3 2019, it revealed the Gold Coast, at 26 per cent, had the highest portion of apartment sales between $3-5 million.
Brisbane followed with 22 per cent, then Sydney with 21 per cent.
"Interestingly, in this prime price range, Melbourne apartment sales held the lowest portion with 8 per cent (therefore 92 per cent were houses sold)," said Ms Ciesielski.
"Although in the $5-10 million range, Melbourne prime apartments was the only city to be the strongest performing of it’s three prime price ranges, with a 13 per cent portion."
Stepping up into the $10 million+ range, Perth apartments recorded the biggest slice compared to other cities, with 18 per cent of all prime residential property sold in this band.
Sydney was next best with 10 per cent, then Melbourne recorded 5 per cent of total prime residential sales being prime apartments.
Who are the people buying all these apartments?
Ms Ciesielski said the typical local migration patterns of the ‘Active Retired’ group in the prime suburb regions are evident in each of the major cities.
"Physical boundaries have tended to keep many from crossing naturally occurring barriers like Sydney Harbour, Yarra River, Brisbane River and the Swan River, although the beachfront has attracted cross-country moves like Mudgeeraba to Burleigh Heads on the Gold Coast," said Ms Ciesielski.
"There can be a significant difference between the median value of houses and apartments in the same suburb for those looking to downsize.
"This can be attractive if the choice of product is available and the desired outcome is to utilise the balance of funds after the new purchase."
Ms Ciesielski said more often now, the remaining balance is used to support younger generations buying property in a prime location without compromising their lifestyle saving for the significant first home deposit.
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