Demand for prestige property in Brisbane and Perth’s recovering markets has pushed the cities on to the international stage for premium residential markets.
Brisbane and Perth joined Sydney and Melbourne for the first time on Knight Frank’s Prime Global Cities Index, which measures the top 5 per cent of a city’s housing market by value.
Demand for prestige homes in Brisbane led to 3.6 per cent price growth over the past year while Perth saw 2.8 per cent growth.
While not as substantial a growth for premium homes than Sydney, which saw 8.7 per cent growth or Melbourne’s 8.3 per cent, it was enough to rank Brisbane and Perth, on an index out of 43 cities, at 19th and 21st respectively.
Knight Frank researchers attributed Brisbane’s new position amongst global premium housing prices to a growing demand of downsizers who search for a new home that is easy to maintain and in a good location as they settled into their final years.
Perth has reportedly been benefitting from a healing housing market and returning traditional buyers who have a “long-hold view”.
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The index revealed that Seoul overtook Guangzhou this quarter for the top spot, registering 24.7 per cent annual growth.
“Across a large part of the city new macro prudential measures, including new taxes for owners of multiple properties and tighter lending restrictions, are cooling growth, but the prime area of Gangnam is still seeing strong speculative activity.
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“Key European cities are also well-represented at the top of the table. Edinburgh and Zurich join Berlin, Paris and Madrid in the top 15 this quarter,” the report said.
“The world’s top tier cities – London, New York and Hong Kong – all saw annual price growth dip marginally compared with last quarter.
“In London, while the market remains sensitive to political events there is a sense of (relative) stability being restored.”
Stockholm was the weakest performer, registering the largest prime price declines over a 12-month period of any city.