Increase in price premiums for waterfront properties in 2021: Knight Frank

Sydney has taken the top position for greatest uplift in waterfront sales this year, according to Knight Frank Australia head of residential research, Michelle Ciesielski. The pandemic had seen an increased focus on the importance of the home, Ciesielski added. "Australians are paying greater premiums than ever before for waterfront real estate in Australia’s prime and super-prime residential market. The Knight Frank research calculated one-in-three super-prime residential sales in Australia over the last year have been absolute waterfront properties, both houses and apartments. Harbour waterfront sales dominated, totalling 64% of super-prime sales in the last year and representing a 16% increase from 2020. It noted price premiums for waterfront properties in 2021 have increased by 14.4% to represent a 79% price premium on inland properties. The Knight Frank Australia’s Australian Waterfront Premium 2022 report shows that waterfront real estate dominate the super-prime $10 million plus markets. "Over the last year, one-in-three (32.9%) of the 374 super-prime residential sales were found to be located on the absolute waterfront across Australia. "The most popular type of ‘waterfront’ for super-prime sales is the harbour, representing an emphatic 64% of super-prime sales in the last year. "This has also risen in the last year, from 48% in Q3 of 2020. "This reflects the surge in the super-prime market this year, which Knight Frank research showed more than doubled in the first three-quarters of 2021. "Properties with coastal frontage represented 16% of total sales in 2021, followed by 13% on a canal and 7% on a river. “Given the lengthy pandemic lockdown endured, it’s perhaps not surprising that waterfront homes in Melbourne have experienced the strongest growth of the five major Australian cities, with the waterfront premium increasing from 30% in Q3 2020 to 37% in Q3 2021. “Sydney has taken the top position for greatest average uplift in waterfront sales this year, rising by 13.5% in the last year to 119% in Q3 2021. "Interestingly, the prime markets in both Gold Coast and Perth continue to assert their growing share of voice, with the Gold Coast following Sydney at a premium of 71% in Q3 2021, representing a growth of 5% year-on-year, and Perth recording an average uplift of 67% at 9.5% year-on-year growth. "Brisbane’s prime market has been dominated by interstate buyers and local upsizers who favour riverfront real estate in prestige suburbs, averaging a waterfront premium of 54% at a 14% uplift.”