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Sydney real estate market reaches prestigious level

It seems that now is the time to spend big money on the Sydney property market, according to a global report.

Domain has commented on the report from the Knight Frank Prime Residential Property Index, saying that the city's prestigious - most expensive - real estate market is performing far beyond any of its international competitors.

The index itself came out today (20th April) and states that the top five per cent of most expensive homes in Sydney rose in value by a massive 14.8 per cent throughout last year.

In this high-end housing category, the level for growth has been just 1.8 per cent overall on a global scale.

The only market that managed to outperform the strong rates of Sydney was Vancouver, which saw its luxury prices increase by 24.5 per cent over the same year-long period.

Michelle Ciesielski, Knight Frank's director of residential research in Australia, said: "Many comparisons can be drawn between the two cities [Sydney and Vancouver] - a lack of prime supply, coupled with foreign demand."

She added that this supply and demand was "spurred on" by the weak Canadian and Australian dollars, leading both cities to have such "stellar performances" in the luxury property market.

This is a massive improvement for the high-end of Sydney's real estate sector, as it came in as the 13th-highest performer in 2014, again according to the Knight Frank Index.

Not to be outdone, Melbourne ranks in sixth position in the top 25 global cities for prime residential property, making Australia's property market look robust overall.

However, analysts are expecting that Sydney will outperform Melbourne this year, seeing it come out on top on a national scale.

Ms Ciesielski believes: "Sydney prime is expected to remain the best performer, although the pace of price growth is expected to slow from close to 15 per cent year-on-year in 2015 to ten per cent in 2016."

This isn't certain though, and we shouldn't forget that Melbourne's prestigious properties grew by 11.9 per cent, so it isn't much behind the so-called "stellar" performance of Sydney.

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