We love this city – there are many reasons why so many Crown Group projects have been established in the NSW capital. But for those in the search of prime luxury real estate, it isn't just us saying Sydney is the best spot to do it. We've collated research from all over that points to overall market strength and the potential for growth in luxury real estate here. Check out the five figures below.
6th best luxury market on the planet
Christie Real Estate regularly puts together data on luxury real estate. It compiles absorption rates, time on market and growth in sales above the million dollar mark to discover what it deems the hottest luxury markets in the world.
For its 2015 rankings, Sydney came it at sixth – well ahead of any other Australian city, and the third year in a row it has been in the top ten. Sydney sits alongside cities like London, Los Angeles, Miami and Paris as a true hotspot for luxury living.
26 days less on the market in 2015
Luxury real estate sat on the market for an average of 93 days in 2014, according to the research from Christie. But last year, that dropped all the way down to 67 days. With 26 less days on the market, it is clear that demand is high for our brightest prestige properties.
The downside of high demand for consumers is that there can be hot competition to get your name on a contract. That's where getting in touch with Crown Group to find out about our up and coming work can be hugely beneficial, getting your foot in the door on some fantastic luxury apartments.
9.12 per cent growth over 12 months
People don't just buy luxury apartments to live in themselves. With the right property selection, they can make for strong additions to an investment portfolio. If you take a look at CoreLogic RP Data's monthly indices from the end of October, you get a good idea of just how much apartments can offer.
That 9.12 per cent growth for Sydney units is a little more than one per cent behind houses. For comparison, in Melbourne unit growth in the same time period is 4 per cent less than houses. Value increases in Sydney units are also higher than houses nearly everywhere else in the country.
The numbers don't lie – luxury apartments can be a resounding source of capital gains.
15 per cent prime growth in a weaker global market
If the performance of Sydney units wasn't convincing enough, the Knight Frank 2016 Wealth Report shows that Sydney's overall prime residential market has been thriving during a time when many markets have faltered.
Knight Frank's Prime International Residential Index (PIRI) ranked Sydney as the second best city in the world for growth in luxury real estate, sitting at 15 per cent. A total of 34 cities in the top 100 saw values drop, including 22 from Europe. While conditions in many markets aren't performing well, Sydney is moving from strength to strength – yet another reason to look at it with eager eyes.
2 million people about to benefit from new strata laws
When you buy into a luxury apartment development in Sydney, you will have responsibilities as a strata title owner. It's an excellent time to do this, as we are about to see more than 90 legislative changes to improve conditions for strata owners right across the state.
We'll go into further details on some of these in another article, but some of the major changes for title holders include:
- A new system for collective sale and renewal.
- Streamlined approvals processes for renovations on a unit or apartment.
- Greater accountability for strata managers.
- Better processes for disputes between tenants and landlords.
- New avenues for management of parking lots, potentially through commercial schemes.
This is just a handful of the changes underway. The bulk of them will come into effect on November 30, and they should make owning luxury apartments in Sydney even better. It's certainly the kind of in-depth legislative overhaul that we haven't seen anywhere else recently.
Are you convinced yet?
Sydney is consistently a top performer among global prestige markets, and with good reason.
We could go on all day about how excellent Sydney is for luxury apartments to be honest, but for now that's probably enough. Sydney is consistently a top performer among global prestige markets, and with good reason. Sound legislation, excellent growth and returns, powerful migration flows and positivity when other markets are weakening are all big ticks in our favour.
Of course, that doesn't help you choose exactly where your luxury apartment search should take you. Let the Crown Group team help you out there – talk to us about up and coming developments that will give you the dream apartment you deserve.