Sydney’s luxury home market leads the world in growth, breaking through Miami and Los Angeles

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Sydney’s luxury home market is expected to lead global growth, with London-based global real estate consultancy Knight Frank forecasting a 10% price increase in 2021.

inside that Latest research, Sydney is also projected to outpace Miami (6%) and Los Angeles (5%) in major residential real estate price growth this year.

This was after 1,429 luxury home sales were recorded in Sydney in the first quarter of this year, the highest quarterly figure in Sydney.

“Because the borders are closed, wealthy Australians buy domestically, not abroad,” the report said.

The blockade supported Sydney’s luxury real estate market because wealthy Australians were buying domestically rather than abroad, Knight Frank’s head of Australian housing research, Michelle Sielsky.

“It’s currently closed, but it’s customary to watch exclusively when buying a luxury home.” Ciesielski said Australian Financial Review. “Often, off-market purchases have already been made with ultra-rich Australians rooted in the soil of the home for the past 16 months.”

Sydney is also projected to lead top growth with London in 2022. This is because both cities are projected to grow another 7% year-on-year.

Ciesielski shows that the luxury market has recorded some quarterly growth since March 2013, and the supply shortage of new prime real estate continues as the ultra-high net worth population grows. ..

“For the last three quarters in a row, we have had record-high prime sales transactions. This increase in sales could leave the Australian border closed for the foreseeable future in the 2022 market. It suggests that there is still depth in the market, “says Ciesielski. Said.

Knight Frank’s global research team has made three key forecasts since the start of the pandemic, with average forecasts being high each time. In May 2020, they predicted a 1% increase in 2021, but in December 2020 it rose to 3% and in July it rose to 4%.

Sydney was recognized as the “Most Improved Market” after the 2021 market forecast rose from just 3% in the previous report to 10%.

Global prime price forecasts have risen over the past six months due to government stimulus, rising household savings, supply problems, and changing labor patterns.

Perth led Australia in major annual growth rates in 2020, followed by the Gold Coast and Brisbane. Previous research..

Prime real estate is defined as the top 5 percent of the market.

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