Property in Australia's largest two cities, Sydney and Melbourne is finally becoming affordable – but only of you are one of the 'super-rich', new data suggests.
Like many other major metropolitan areas, the two cities are in the midst of an affordability crisis. Despite this, properties have dropped several places on the list of the world's most expensive cities for luxury housing.
Asia dominated the list published in the Knight Frank Wealth Report for 2017. Prices in the Chinese capital Beijing jumped a massive 26.8%, with Shanghai prices rocketing even more at 27%. Sydney and Melbourne grew 9.3% and 8.8% respectively. This slowdown will likely draw those with plenty of cash to choose Australia for investment opportunities or to purchase a second home.
According to the report, Australasia was the strongest performing region in the world with an 11.4% annual growth year on year. Wealthy people see Australasia as a safe haven given its consistent growth. Australia is particularly appealing due to its strong economy and its stable political profile.
Since the financial crash, those investing in property favour stability over high-risk investment, making Australia the ideal choice. It is reported that of all people worth over $30 USD, up to 70% of them will invest in Australia over the coming decade – specifically in Sydney and Melbourne.
Michelle Ciesielsk, a director at Knight Frank, said that HNWI (high net worth individuals) are key to growing the Australian economy. Sydney is at the top of the list for the highest net inflows of HNWIs globally, with the inflow representing growth of 4 per cent of the HNWI population already based in the city.
Melbourne came second on the list with an annual net inflow of 3000 HNWIs, while Perth came in eighth.