Ultra-prime Sydney outperforms in pandemic
Sydney's priciest properties are maintaining their safe-haven status, with new data showing it was the only one of 12 top global markets to record an increase in sales worth more $US10 million ($14 million) over the course of the COVID-19 pandemic to date.
New research from Knight Frank analysed 153 transactions above $US10 million in 12 globally-significant cities, with Sydney emerging as the standout performer.
While super-prime transactions fell in each of the other cities, which included Hong Kong, Los Angeles, New York, London and Singapore, there were 15 sales worth more than $US10 million in Sydney from March to June this year, compared to 13 in the same period last year.
The average transaction value in Sydney's top-end market rose from $US12.6 million ($17.6 million) last year to $US16.8 million ($23.5 million) during the pandemic.
Knight Frank’s Erin van Tuil said the Sydney's fundamentals as a city remained attractive to luxury property investors.
Ms van Tuil said Knight Frank had been experiencing strong sales success and a record number of enquiries at one of Sydney's most exclusive properties - Crown Residences at One Barangaroo.
“While we had a quieter April, we received the highest number of enquiries to date in February and June 2020, and sales are performing phenomenally well," Ms van Tuil said.
“After a period of dislocation, the flight to quality property from active participants in the market has increased dramatically.
“Buyers are looking for a more intimate connection to their homes, with space, ceiling height, privacy, services and the beauty of a building being front of mind.”
Rothschild Australia chairman Trevor Rowe was recently revealed as a purchaser at the Crown Residences, with the investment banker citing the project’s concierge service, large apartments and its location as big attractors.
First residents are expected to move into the development by March next year.
Ms van Tuil said more than $650 million in sales had been achieved at the project, including 12 worth more than $20 million.
Globally, while the total number of transactions in super-prime real estate fell, deal values were generally higher during the pandemic, as compared to last year.
Knight Frank said the global average transaction value was up by 15 per cent in March to June, at $US20.7 million ($28.9 million).
Hong Kong ranked the highest in terms for total number of transactions, with 60 sales in 2020 worth more than $US1.2 billion ($1.68 billion).
Knight Frank Australia head of prestige residential Mark Manners said sales processes may have been disrupted by COVID-19, but they had not been derailed.
“You tend to find sales are postponed, rather than cancelled,” Mr Manners said.
“Super-prime and ultra-prime property is viewed as a safe investment for the long-term, so buyer interest has not dampened and is expected to increase as markets continue to exit lockdown.”