Sydney generates the highest premium for waterfront properties globally: Knight Frank

Sydney generates the highest premium for waterfront properties globally: Knight Frank
Sydney generates the highest premium for waterfront properties globally: Knight Frank

Sydney has the highest prices for prime waterfront properties across the world, according to the new Knight Frank Global Waterfront Monitor.

Australia dominates the top five cities, with Sydney well out in front (89.3%), followed by the Gold Coast (64.1%) and Perth (53.2%).

Dubai (50.7%) and Paris (48%) round off the top five.

Michelle Ciesielski, Knight Frank’s director of research, said Sydney topped the charts because it has one of the world's best waterscapes.

“From its iconic New Year celebrations to the starting point of the Sydney to Hobart yacht race on Boxing Day, residents are treated to expansive views of one of the world’s best waterscapes,” she said.

Prices for prime waterfront properties are on average 40% higher than comparable properties inland, Knight Frank's Global Waterfront Report 2019 suggests. 

Liam Bailey, Knight Frank's global head of research partner said waterfront addresses are amongst the most desirable in the world, however not all prime waterfront properties are equal and the premiums vary depending on location and amenity.

“Our Global Waterfront Report 2019 found that being located alongside a harbour generates the highest premium of 59.1%," Bailey said.

"This is closely followed by beachfront homes which command an average uplift of 58.5%, with Sydney and the Gold Coast registering some of the highest uplifts for beachfront properties.

"River and lakeside residences are on average 36.8% and 32.7% higher, respectively.”

Bailey said new-build beachfront properties are in high demand in both Perth and Dubai as developments, such as the Palm Jumeriah in Dubai, provide prospective buyers with the opportunity to access the lifestyle and amenities waterfront properties are renowned for.

“In Paris new-build opportunities are scarce so waterfront residences are typically older high-ceilinged Haussman homes along the Seine. This is similar in Berlin where limited space for new-builds is expected to contribute to the increase in the premium waterfront properties generate, which currently sits at 28%.”

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Sydney generates the highest premium for waterfront properties globally: Knight Frank
Source: Knight Frank

Prime waterfront residences in Sydney experience the largest uplift globally, according to Knight Frank Australia's head of residential partner Sarah Harding.

“Sydney sits in first place with waterfront properties generating an average premium of 89.3% (as at Q3 2018), when compared to similar properties located further inland without access to water.

"Homeowners vie for the finest views of the Harbour Bridge and Opera House as it offers sprawling vistas of, and access to, one of the world’s best waterscapes.”

Harding said prospective buyers from all over the world search for waterfront properties, although there is particularly strong interest from the UK, US, Canada and Australia.

“Outside of the lifestyle and additional amenities a waterfront home provides, such as private moorings or jetties and easy access to numerous water sports, they are also an attractive opportunity for buyers as they are amongst the most liquid of properties.

“Even during a market downturn we see frontline waterfront properties remain in demand due to their position and scarcity. This sees them retain their value and also provide potential buyers with additional confidence in their future exit strategy should they need to sell.”

Knight Frank’s Erin van Tuil, partner of Crown Residences at One Barangaroo said developments such as the Crown Residences at One Barangaroo are creating a new benchmark for waterfront properties in Sydney and around the world.

"Each of the 82 six-star hotel-branded residences will provide expansive dual or triple aspect views over Sydney Harbour, from its iconic New Year celebrations to the starting point of the Sydney to Hobart yacht race on Boxing Day, making it one of Australia’s most prestigious residential addresses.”

 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Tags: 
Sydney Waterfront Property

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