Great news for luxury property owners in Sydney! The affluent city has ranked third in the world for luxury property growth, according to the Knight Frank's Prime Global Rental Index for the first quarter of this year. This is a huge leap from its previous sixth position. And that's not all; Sydney has also recorded the second-highest quarterly growth and the second-highest six-month growth, behind only Singapore.
Sydney's prime property rents increased by 11.7% over the last 12 months, far outpacing other cities. Home to some of Australia's most expensive properties, Sydney ranks just behind Singapore and London for annual growth. Erin van Tuil, Head of Residential at Knight Frank, explains that the strong demand and the chronic undersupply of properties are driving up the rents across all residential property in Sydney. "The major factors driving the strong growth in prime rents in Sydney are returning expats needing accommodation, as well as a rise in corporate rentals for new talent hires from outside Sydney," she said.
The pandemic has affected the luxury property market, but the post-pandemic recovery has been strong. The index found that prime rents have surpassed pre-pandemic levels by 14% and have risen above the pandemic low by a massive 21.7%. Knight Frank's Head of Residential Research, Michelle Ciesielski, noted that while growth rates have slowed from the previous quarter, rents continue to rise at a rapid clip globally.
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Sydney's luxury property market is expected to continue its growth trend through 2023. "With housing construction volumes remaining low amid issues faced by the construction sector and fewer developers building product suitable for investors due to a focus on owner-occupiers, rents in Sydney’s prime residential market are expected to continue to rise well above trend through 2023," said van Tuil. So, if you're a luxury property owner in Sydney, this is definitely good news for you. Your property value is likely to rise, and your investment will yield better returns. Enjoy the growth of Sydney's prime residential market, and continue to invest wisely!
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