Sydney Apartments Finally Appeal to The Ultras
MARCH 18, 2019
When I talk with knowledge & pride about what our Knight Frank Prestige Residential team are achieving many of my Ultra High Net Wealth individual (UHNWI) clients are flabbergasted. No one thinks that sales over these prices are real. Sure Sydney harbour-fronted, Fairwater sold for $100m but how can a unit be worth anything like that? When outlined what the differences are from the norm and that international buyers require certain features, you realise that Sydney and Melbourne both offer apartments, but how radically different these versions can be. In addition, our research concludes that 80% of our enquiry and buyers are “Aussies”, those that were flabbergasted are now shell shocked. We naturally assume that the money for especially expensive real estate is international. After all we also assume Australia doesn’t have many rich people.
80% of our enquiry and buyers are “Aussies”
Knight Frank are the exclusive international agents for the latest Sydney harbour-fronted, 71 storey, “One Barangaroo”, which is presently under construction and due for completion in 2021. Just 82 Residences are being offered with the lowest priced a 2 bedroom + Study for circa AUD $9.5m. KF’s specialist One Barangaroo team have had wonderful success with Australia’s first 6-star hospitality branded residences with some significant sales having exchanged.
Recently Knight Frank released it latest Wealth Report for 2019, this is the 13th report and the global research team is now 26 strong. In the report it seems clear that whilst many other nationalities like investing their money in Australia, it’s Australians that prefer putting their money back into the country and are less inclined to buy elsewhere.
Did you know that an Ultra High Net Wealth individual (UHNWI) in Australia, is someone who invests about 35% of their total wealth in properties which they live in? This covers both first and second homes, and on average, own 3 homes excluding those residential properties held for investment purposes. Someone considered to be an UHNWI has net worth of US$30m (not including the value of their principal place of residence). So based upon our findings that means that you are likely to have allocated a minimum of A$16m to your live-in residences.
When we look into the changing needs of empty-nesters we see adventure travel replacing the times otherwise spent maintaining gardens, tennis courts and pools. We see vibrant communities with compatible goods and services in a centralized location. We see concierge and butler services and also convenience, activity and variety. None of this is available in an investment grade, poorly designed, low budget constructed home units.
When we look into the changing needs of empty-nesters we see adventure travel replacing the times otherwise spent maintaining gardens, tennis courts and pools.
Sydney and Melbourne are important Australian cities which have come of age. Now they are also feature as truly global cities. What will occur in the future is a comparison of how Sydney competes with Singapore, New York, London and other comparable important places to live. It will be rated and ranked and the benchmarks will be higher than we have seen before. Today it ranks 8th with London 1st and New York 2nd. Interestingly a two storey apartment in New York at 220 Central Park South is just recorded as having sold for US$238m or AUD $333m but then a 1964 collectable Ferrari just sold for US $48.4m. So, Sydney looks great value.