ECONOMIC OVERVIEW AND INDUSTRY HIGHLIGHTS
Despite the current circumstances surrounding Covid- 19; lockdowns and international border closures have not stopped Sydney’s luxury market from outperforming every city in the world. According to Knight Frank’s 2021 Prime Forecast Report, Sydney has been noted as the leading city of luxury real-estate growth this year, and is predicted to maintain its position next year.
Buyer sentiment and momentum remains strong despite recent lockdowns, merely a representation of the current undersupply of prime real estate, which continues to drive growth throughout Sydney’s most prestige and wealthiest suburbs. Affluent investors and homebuyers are taking advantage of current low interest rates and increased disposable income due to lack of travel and choosing to recycle their wealth into the property market, which is subsequently fueling the prime real estate boom.
Knight Frank also predict that Sydney will maintain its position of being the leading city for luxury real estate, which suggests that there is room for even more growth with doubts of the boom slowing down anytime soon. Prior to the Covid outbreak, foreign investment was strong throughout Australia, especially in Sydney. Contributions of Chinese investment dropped by 26.8% ($2.5b) in2020 from 2019, which mirror’s figures from the pre- mining boom in 2007. Whilst the closure of international boarders have resulted in a lack of foreign investment, boarders are forecasted to re-open by 2023. This will attract the foreign buyers that were lost and will continue to fuel the property boom.
Source: KPMG Insights, Knight Frank & AFR