Sydney Harbour named the most expensive waterfront address in the world

Luxury homes dotting the edge of Sydney’s famous harbour are commanding prices more than double that of neighbours without a view, the largest premium for waterfront living in the world.

82 New Beach Road, Darling Point is on the market for $70 million. Picture: Supplied

Cashed-up Sydneysiders are paying the largest premium in the world to live on the water’s edge.

Home buyers looking to secure their own slice of the city’s world-famous harbour are willing to pay more than double the broader home price for the honour, with international real estate firm Knight Frank’s latest Frank’s Global Waterfront Index showing a 118 per cent premium in Sydney.

While this has fallen slightly on last year, down 3 percentage points, the premium is still more than triple the international average of 48 per cent.

Highest waterfront premiums paid globally.

Knight Frank Head of Residential Research Michelle Ciesielski said that with few choices on the market, buyers are proving just how desirable the view is with their wallets.

“Frontline water access is a rarity in cities and protected areas of outstanding natural beauty,” Ms Ciesielski said.

“In Sydney, there is an ongoing immense shortage of prestige homes being listed for sale across Sydney prime regions, including on the waterfront, with many still selling off-market and before any form of marketing takes place,” she said.

The Global Waterfront Index measures the potential value uplift for prime homes on the water’s edge or absolute waterfront, compared with similar properties located further inland without access to, or a view of, water in eight of the world’s premier locations.

Sydney’s premium was more than double that of second placed Auckland, where buyers are stumping up an additional 58 per cent to secure waterfront, while the top five is rounded out by luxury European destinations, Monaco (42 per cent), the French Riviera town of Cap D’Antibes (40 per cent) and Paris (38 per cent). The list was rounded out by Geneva (35 per cent), Vienna (15 per cent), and Hong Kong (12 per cent).

12 Musgrave Street, Mosman. Qantas boss Alan Joyce is selling the house he purchased for $19 million.

Outgoing Qantas chief executive Alan Joyce and husband Shane Lloyd last week listed their Mosman harbourfront mansion with a private jetty on the market with a $20m price guide, just $1m more than what they paid last year

Meanwhile, the sellers of a brand-new Darling Point home, with north facing views of the iconic Harbour Bridge, are seeking $70m.

Sydney Sotheby's International Realty managing director Michael Pallier said local and international buyers are in the market, with demand doubling since the onset of the pandemic.

“It’s as good as it gets,” Mr Pallier said.

“This year, immigration has reopened, the dollar is down and there is a limited number of properties on the harbour.”

The Point Piper mansion "Elaine" on New South Head Road sold for a record amount in 2018.

A Point Piper mansion called Fairwater smashed the country’s property price record in 2018 when Atlassian founder, Mike Cannon-Brookes and his wife Annie, dropped $100m to secure the stately home that once belonged to media proprietor Sir Warwick Fairfax and his third wife, Lady Mary Fairfax.

That record was beaten in the final weeks of 2022 by his business partner, Scott Farquhar, who purchased the hilltop Scottish baronial castle-style home called Uig Lodge in Point Piper for $130m.

Waterside properties in Sydney now command the world’s largest premium.

However, Australia’s largest deal ever recorded was $140m for the crowing jewel of Lendlease’s One Sydney Harbour, an amalgamation of several apartments into one sprawling sky home.

Ms Ciesielski said noted Crown Residences at One Barangaroo, located on the iconic Sydney Harbour, has made up 79 per cent of Sydney’s total ultra-prestige CBD apartment sales since March 2021, highlighting the strength of demand.