Sydney’s prime real estate the sixth most expensive in world

Sydney is the sixth most expensive world city for prime real estate, outstripping other major capitals such as Shanghai.

Prestige residential boss Deborah Cullen and Trent Iverson. Picture: Hollie Adams

Sydney is the sixth most expensive world city for prime real estate, outstripping other major capitals such as Shanghai, Berlin, Miami and Dubai.

Latest Knight Frank research reveals the average prime price for Sydney real estate — defined as the top 5 per cent of the market by value — was $27,244 per square metre in 2018, up from $18,903 in 2014.

“The Sydney super-prime luxury market has had three consecutive years where each year the top sale has smashed the previous year’s record,” said Knight Frank’s partner and head of prestige residential, Deborah Cullen, who is marketing a whole-floor, five-bedroom apartment in the Harry Seidler-designed Horizon building in Sydney’s Darlinghurst with a price tag of $17. 5 million.

“This continues to demonstrate there are only a handful of local exclusive super-prime properties available in Sydney for the growing ultra-wealthy and billionaire population, and competition for these rare properties is driving prices up.

“These types of buyers own multiple residential homes and are typically looking for ‘best in class’ or ‘one-only’ style properties with a particular focus on iconic Sydney harbourfront residences with panoramic views and waterfront access.”

Hong Kong, London, New York, Singapore and Paris remain dominant in the ultra-prime markets, while Sydney sits in the ­middle, with the premium uplift differential averaging 128 per cent over the five years from 2014 to 2018.

Knight Frank’s head of residential research Australia, Michelle Ciesielski, said over the past five years the gap has been the widest in Hong Kong, with a five-year average of 390 per cent, while the uplift was the lowest in Paris and Singapore, with five-year averages of 30 per cent and 39 per cent respectively.

Meanwhile, Knight Frank’s partner and head of residential Australia, Sarah Harding, said there were 43 billionaires in Australia.

“This is an exceptional rise of 30 per cent recorded in the number of Australian billionaires over the course of 2018, and this is projected to further rise by 14 per cent over the next five years,” she said. “Australia is coming off a relatively low base. However, since 2013 the number of billionaires has grown by 95 per cent.”