The super-rich count is going up hugely in Australia and these buyers and investors are snapping up luxury residential properties according to reports. The ultra-wealthy individual count has gone up in Australia and the real estate sector is benefiting immensely from this fact. There are approximately 1, 260 ultra-wealthy individuals in the country who have $269 billion as their combined net-worth. Australia is also one of the top 5 destinations for wealthy investors planning luxury real estate purchases this year in tandem with Switzerland, the United Kingdom, Canada and the United States.
Australia is viewed as a greater value proposition by the super-rich since there is more space available for an amount of $1 million in comparison to other luxury property destinations globally according to reports. As per studies, $1 million can help in purchasing 49 square metres of luxury internal floor space in Sydney and this stands at 117 square metres, 91 square metres and 126 square metres in Brisbane, Melbourne and Perth respectively. The ultra-wealthy population should increase by 37% more over the next 5-6 years as per studies and hence the luxury realty sector will benefit.
Sydney is one of the most preferred destinations for luxury property purchases while Perth and Melbourne are other prime destinations as well. Longueville is the best performing Sydney suburb in this space with median prices touching $4.6 million and capital growth of 117.7% over the last 5 years. For Sydney, 1809 luxury properties were sold last year. In Melbourne, there were 871 units sold in 2017. Hawthorn East was the highest performing Melbourne suburb in the luxury realty segment with $2.3 million being the median value and capital growth of 129.4% over the last 5 years.
Peppermint Grove was the highest performing luxury realty suburb in Perth and the median prices stood at $3.1 million here. Capital growth has been 14.5% over the last 5 years in Perth according to reports.