Perth might be in the middle of a cost-of-living and housing crisis – but try telling that to the luxury residential sector which continues to outpace all Australian capital cities and major cities worldwide. New data from Knight Frank’s Prime Global Cities Index shows Perth recorded the highest luxury residential property price growth in the country in the past 12 months. The index tracks the movement of prime residential property prices across 44 cities worldwide.
The research found four Australian cities – Perth, Sydney, Brisbane and Melbourne – recorded positive growth with Perth the strongest at 3.7 per cent, followed by Sydney (3.1 per cent), Brisbane (2.
4 per cent) and Melbourne (0.8 per cent). On a global scale, Perth ranked 14th in front of Tokyo, Paris, Beijing and Toronto.
Manila recorded the highest annual growth at 26 per cent, followed by Mumbai and Delhi. Major cities Shanghai, Dubai, New York, Berlin, London and Hong Kong all saw a decline in the luxury residential market. Despite the growth, research shows global housing markets declined between the first and second quarter of the year, with growth well below the long-term average of 5.
3 per cent. “The slowing in price growth this quarter across global prime markets reflects the fact that, without further stimulus from rate cuts, the bounce in market pricing we have seen over the past few quarters is running out of steam,” Knight Frank Global head of research Liam Bailey said. “The biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months.
” The current property boom in Perth is conservatively said to have increased the collective wealth of owners by more than $143 billion over the past financial year. With 5 bedrooms, 5.5 bathrooms, this mansion is located in one of Perth’s most sought after locations.
Credit: Ray White Group Limnios managing director James Limnios said while lower priced suburbs had recorded some of the highest capital growth rate figures in Australia, upgraders in the Perth property market would drive up expensive homes. “As a result, we should see much stronger price rises broadly across middle to upper priced properties in Perth that have not benefited from the eastern states invasion as much compared to lower priced homes over the past year,” he said. “Perth property prices will rise even further when interest rates fall because wages in WA are the highest in Australia and falling interest rates will increase the borrowing capacity of local buyers.
“Pressure on Perth property prices will also continue because the supply of homes will remain critically low and new housing construction is not matching population growth.” Read more: Leaks and mould latest woes for homeowners battling building giant This contemporary bar and bottle shop is committed to thinking global, but serving local Trans woman wins landmark discrimination case against female-only app.
