_Sydney takes 8th spot in Knight Frank’s City Wealth Index

The 2019 City Wealth Index looks at the world’s leading cities in order to generate detailed insights that investors rely on and identifies the global urban powerhouses that matter most to the world’s movers and shakers.  

According to Knight Frank’s Head of Residential Research, Australia Michelle Ciesielski, Sydney ranked eighth overall on the 2019 City Wealth Index, which is built around three categories: wealth, lifestyle and investment, on which Sydney ranked sixth.  

“The investment component of the City Wealth Index, in which Sydney came in at sixth, looks at where the wealthy are investing. Globally, we assessed data on major property investments – residential and commercial worth US$10 million or more – by private individuals and family offices.  

“The ranking not only takes into account the volume of investment, but also diversity in terms of the number of different nationalities investing.  

“For the lifestyle rank, Sydney came in at 16th. This category draws on the Wealth Report Attitudes Survey 2019 to identify key lifestyle decision influencers, such as education; security; and luxury indicators – including the number of five-star hotels and the quantity and quality of leading restaurants. 

“Finally, the wealth category, in which Sydney ranked 27th, uses data from analyst GlobalData WealthInsight to look at current ultra-wealthy populations in each city, as well as analysing recent growth performance. 

“The population of ultra-high-net-worth individuals (UHNWIs) in Sydney was estimated at 875 in 2018 and this is projected to grow by 20% over the next five years. This is relatively in line with 22% increase in the global UHNWI population projected for the five years to 2023,” said Ms Ciesielski.  

Computer generated image: Crown Residences at One Barangaroo, Sydney

The Wealth Report confirms the appeal of Australia, and Sydney, to UHNWIs around the world, according to Knight Frank’s Erin van Tuil, Partner, Crown Residences at One Barangaroo. 

“Sydney’s position on the City Wealth Index highlights its prominence as a wealth and lifestyle destination, placing it firmly on the global scale. To accommodate for the growing UHNW population we are starting to see exceptional residential projects being delivered, such as Crown Residences at One Barangaroo on the Sydney Harbour foreshore.  

“Barangaroo is a prime example of true urban regeneration, where the precinct has fast become a thriving inner-city community, comparable only to the likes of New York’s Hudson Yards or London’s Battersea Power Station. Itis already home to 20,000 daily workers and with residential under development, it is one of Sydney’s most significant precincts boosting our economy and tourism.  

“It will also be home to Sydney’s first six-star hotel-branded residences, Crown Residences at One Barangaroo. The world-class residential project will deliver UHNWIs access to a super-prime level of luxury for the residential market in Sydney for the first time.  

“As the creation of wealth around the world continues, driving global investment, we can expect Sydney will remain a popular destination for UHNWIs,” concluded Ms van Tuil. 

Computer generated image: Crown Residences at One Barangaroo, Sydney

Global market 

The Knight Frank City Wealth Index is a tale of contrasting fortunes for North America and Asia-Pacific. Both have seven cities in the top 20, which is down three for North America and up two for Asia-Pacific. Europe remains consistent with six, although London is its lone representative in the top 10 despite any concerns over the impact of Brexit. 

Liam Bailey, global head of research at Knight Frank, commented: “Hard Brexit, no Brexit, Brexit-lite: whatever the outcome, London will remain the leading global wealth centre in 2019. With the world’s largest UHNWI population, the city sweeps the board in our annual City Wealth Index, pushing its only serious rival, New York, into second place.” 

London now has a population of 4,944 Ultra-High-Net-Worth Individuals (UHNWIs), the largest of any city in the world following an increase of 582 over the last five years.  

The report also identifies five eye-catching ‘cities of the future’ based on their future economic potential: Bengaluru, Hangzhou, Stockholm, Cambridge and Boston. Like Cambridge, Bengaluru and Hangzhou are experiencing very high growth in wealth and investment due to their notable technology sectors. Their predicted growth of UHNWIs over the next five years is 40% and 34% respectively.  

The Knight Frank City Wealth Index 2019 top 10 

Table: Page 19 of The Wealth Report