Sydney harbourfront houses are valued up to 97 per cent more than other waterfront homes, according to Knight Frank’s latest Australian Prime Waterfront Index.
The drive to access the “money shot” of the Sydney Harbour Bridge and Opera House was the main contributor to the uplift.
The index, which measures how much uplift value an absolute waterfront location can add to a property, found the premium was greatest in Sydney, where up to 94.9 per cent in value was added in the 2019 third quarter, an increase of 56 basis points on the previous year.
Knight Frank head of prestige residential Deborah Cullen said Mosman, Point Piper and Rose Bay “had the highest number of absolute waterfront super-prime properties sold in the three years to September 2019, with sales of 14, 12 and six homes respectively”.
“Waterfront properties in Sydney are the ‘best in class’ and, with high buyer demand and limited supply, they will always command high premiums, in any market.”
Sydney was followed by the Gold Coast, where waterfront properties command a premium of 66.5 per cent (up from 64.1 per cent); Perth 53.6 per cent (similar to a year ago); and Brisbane, up 45.1 per cent. This was Brisbane’s first year included in the index.
However, waterside living was less popular in Melbourne, where the premium dropped from 30.4 per cent to 27.3 per cent.
Melbourne buyers preferred access to private schools and shopping villages over waterside living.
The index shows prime waterfront properties in Australia are valued up to 63 per cent more than inland counterparts.
Prime coastal properties had an uplift of 61 per cent, compared to similar properties inland.
Riverfront properties recorded a 57 per cent uplift, while canal waterfronts recorded a 50 per cent uplift.
Knight Frank head of residential research Australia Michelle Ciesielski said the portion of absolute waterfront properties in Australia was 42 per cent in the year to September 2019, when recorded against the total number of super-prime sales nationally.
This was the highest share recorded when benchmarked to previous years.
Ciesielski said super-prime waterfront properties tend to be the most liquid in each market.