2021-10-14-莱坊-Sydney_Prime_Residential_Review_Q3_2021_4页_2mb

Sydney Prime Residential Review Summary (Q3 2021)

Core Content Overview

This report provides an analysis of the Sydney prime residential market performance for Q3 2021, highlighting key trends in sales, prices, and rental yields. It also outlines the future development pipeline and the role of ultra-high-net-worth individuals (UHNWs) in driving demand. The data is sourced from Knight Frank Research and reflects the current state of the luxury real estate sector in Sydney.

Main Market Trends

• Sales Volume: Sydney's prime luxury market has seen four consecutive quarters of record sales. In Q2 2021, the number of prime property sales reached 858, a 23% increase compared to Q1 2021 and an 88% rise year-on-year.
• Super-Prime Sales: The number of super-prime properties (valued over $10 million) sold increased by 92% in Q2 2021, with 73 such sales recorded.
• Sales Turnover: Prime property sales turnover in Sydney reached 90% annually, indicating strong demand and quick sales.
• Days on Market: The average days on market for a prime property in Q2 2021 was 88 days, a slight increase from 86 days in the previous quarter.
• Rental Performance: Gross rental yields for prime properties in Sydney dropped by 12 bps to 2.06% in Q2 2021, down from 2.21% a year earlier. Annual rental growth was -1.3%, showing a decline in rental value.
• Price Growth: Sydney ranked 20th globally for annual price growth among 46 cities, with prime property prices rising by 6.5% over the year ending June 2021. Knight Frank forecasts a 10% increase by the end of 2021 and a further 7% in 2022.

Wealth Trends in Australia

• UHNW Population: The number of Australian ultra-high-net-worth individuals (UHNWs) with net wealth over US$30 million grew by 10.9% in 2020 to 3,124, with Sydney accounting for 33% of this population (1,024 UHNWs).
• Investment Outlook: Total new private investment in Australia declined by 3.6% in 2020 but is expected to rebound to 10.5% annual growth in 2021.
• City Wealth Index: Sydney ranked 31st in the Knight Frank City Wealth Index in 2021, based on wealth, investment, and lifestyle factors.

New Prime Development Pipeline

• Completed Developments (2020): A total of 6,325 medium- and high-density new apartments and townhouses were completed in Sydney's prime regions, 14% less than in 2019 and below the 3-year average of 8,025.
• Forecast for 2021: 55% fewer apartments and townhouses are expected to be completed in 2021, with 2,825 currently under construction.
• Regional Distribution:
  • Inner Sydney: 725
  • Eastern Suburbs: 700
  • Upper North Shore: 575
  • Lower North Shore: 350
  • Southern Suburbs: 200
  • Inner West: 150
  • Northern Beaches: 125
• Bedroom Distribution:
  • 2-bed apartments: 47%
  • Studio & 1-bed: 32%
  • 3-bed+: 21%
• Price Trends: Sydney new prime apartment prices increased by 10.6% in 2020, reaching an indicative $52,000/sqm, with prices ranging from $45,000/sqm to $65,000/sqm.

Comparative Value Analysis

• Relative Value: At the end of 2021, one could purchase 46 sqm of internal luxury floorspace in Sydney for US$1 million, compared to 30 sqm in London or 22 sqm in Hong Kong SAR.
• Currency Impact: Buyers using Pound Sterling had the most advantage when purchasing Sydney prime property, with an additional 3% benefit compared to other currencies.

Key Definitions

• Prime Residential Property: Defined as the top 5% of each market by value, generally the most desirable and expensive properties.
• Ultra-High-Net-Worth Individual (UHNWI): Individuals with a net worth of over US$30 million, including their primary residence.

Contact Information

• Research: Michelle Ciesielski | +612 9036 6659 | michelle.ciesielski@au.knightfrank.com
• Residential: Shayne Harris | +61 2 9036 6713 | shayne.harris@au.knightfrank.com
• Valuations: Alistair Carpenter | +612 9036 6662 | al.carpenter@au.knightfrank.com
• Franchise Partnerships: Scott Timbrell | +612 9761 1823 | scott.timbrell@au.knightfrank.com
• Private Office: Sarah Harding | +612 9036 7552 | sarah.harding@au.knightfrank.com
• Media Enquiries: Caroline Stanley | +614 021 70901 | pr@au.knightfrank.com

Disclaimer

This report is for general information only and not to be relied upon in any way. Knight Frank Australia Pty Ltd accepts no responsibility or liability for any loss or damage resulting from its use. Reproduction of this report in whole or in part is not allowed without prior written approval.