If you want to be among themAustraliaIn the top 1% of wealth, there is good news and bad news here.
The good news is that it's easier to get into the top 1% of wealthy clubs in Australia.
The bad news is that you still need to raise $7.17 million.
But this is still decades lower than the average salary during the affluent period two years ago. In 2022, a bank balance of $8.45 million is needed to own such a prestigious mansion, yacht and caviar company.
Australia is currently ranked seventh in the world in terms of funding needed to rank among the richest 1% of the population, down from third place last year.
Note: All values are in U.S. dollars (**Knight Frank).
Luxury properties continue to generate significant benefits for those who are lucky enough to own a luxury property.
When it comes to luxury residential properties, sellers that are hard to find in this market are selling for slightly more in Sydney and the Coast.
Knight Frank's 2024 Wealth Report found that the amount of space purchased in 2023 was $1 million (1536.AUD 000), slightly lower than in 2022.
In Sydney, in 2023, $1 million could buy 43 square metres of luxury space, down slightly from 44 square metres in 2022. Meanwhile, on the **coast, you can buy 112 square meters for $ 1 million, compared to 117 square meters in 2022.
Still, luxury real estate** in these Australian cities is much cheaper than other markets around the world, such as Monaco, where the elite can buy a 16-square-meter property for as little as $1 million, and Aspen, Colorado, where $1 million can buy a property for just 20 square meters.
Monetary calculations as of December 29, 2023 (Source** Knight Frank Research, Douglas Elliman, Ken Corporation).
Luxury residential properties in 100 selected locations around the world** 31%。
When it comes to the real estate investment goal of becoming super-rich, Australia is far outperforming its population on the world stage.
According to Knight Frank's Attitude Survey, Australia ranks fourth among locations to buy a new home, 56% said if they were planning to buy a new home, the location they were most likely to buy would be Australia. Australia lags behindUnited KingdomUnited States(9.8 %) and France (72 %)
Perth and the ** coast are growing above the global average.
According to the Knight Frank International Quality Housing Index (PIRI 100), Perth's residential** growth was the highest among Australian cities, with a full year** of 52%, ranking 28th out of 100 cities, sunshine and ski resorts in the world. )。
*The coast is based on 4With a growth rate of 1%, it ranks second among Australian cities and 38th in the world, tied with Stockholm. Sydney is ranked 49th, tied with Barcelona with a growth rate of 27%;This is followed by Brisbane at 58th place with a growth rate of 23%;Melbourne tied for 63rd place with a growth rate of 14%。
The sun is shining in Tasmania
The wealthy seem to be more keen on tanning than on ski resorts**.
Sun locations continue to outperform the city and ski markets, averaging 47%。Ski resorts are not far behind (33%), the average of the quality of the city markets tracked is 27%。
Kate Everett-Allen, head of international residential and national research at Knight Frank, said that in early 2023, economists expected results for the global residential real estate market to be significantly weaker, but that did not happen.
*More pain is on the way, inflation is out of control, and with borrowing costs hitting 15-year highs in some markets, the pandemic-induced housing boom is destined to end in tears, however, that has never happened – we've seen a soft landing for global value for money. ”
Tasmania's property market has been in the doldrums for several years after a period of rapid capital growth, but it is still on the radar of the wealthy.
When asked about choosing the type and location of a property that will appeal to affluent buyers in 2024, Knight Frank's Head of Australian Residential Research Michelle Ciesielski identified a wilderness retreat in Tasmania.
Quality properties along the River Devwent in Hobart are worth 142% over the past decade**, although the city still offers great value, with premium homes starting at $1.2 million.
Those seeking a better work-life balance and reduced climate risk are attracted to the opportunity to design modern, sustainable homes. ”
Luxury condominium developments on the radar of investors
The lack of super-premium luxury apartments in Australia is also seen as an opportunity for ultra-high-net-worth individuals (uhnwi, or those with a net worth of $30 million or more) to increase their bank balances.
Erin van Tuil, partner and head of residential practice at Knight Frank, said the global elite could earn more private jet funding by putting money into high-end accommodation developments.
The success of Crown Residences at One Barangaroo is Australia's first fully integrated hotel-branded residence, and its success is a clear indication that service delivery remains an aspect of apartment living and that Australian developers have yet to take full advantage of this.
I think it's a great opportunity for forward-thinking developers and luxury hoteliers to expand into this space and offer more hotel-branded residences.
The crown residences at One Barangaroo are the only truly super-prime building in Sydney, if not Australian, so when you consider that with the massive growth of ultra-high-net-worth individuals in Australia, it is likely that we will see super-premium developments that offer exceptional service in the coming years. The design, location, and service, while perhaps unrelated to the hotel brand, I expect it to be strong as well. ”