_Perth’s luxury residential market set to strengthen

• Mack Hall Real Estate In Association with Knight Frank hosted a private client breakfast event on Friday, May 20
• The topic for discussion was be Perth’s prestige residential property market and how the city compares to the rest of Australia and the world
• Perth’s luxury residential market is expected to continue strengthening over the coming year, particularly now the city has reopened to the world
• One of the suburbs set to capitalise from the ongoing growth in Perth’s prestige market is Applecross, in which Mack Hall Real Estate in Association with Knight Frank has just reopened a renovated office

Perth, Australia – PERTH’S prestige market is expected to continue strengthening over the coming year, particularly now the city has reopened to the world, according to Knight Frank.

Mack Hall Real Estate In Association with Knight Frank discussed Perth’s prestige residential property market – and how the city compares to the rest of Australia and the world - at a private client breakfast event relating to Knight Frank’s recently released The Wealth Report 2022 at Kings Park on Friday, May 20.

In The Wealth Report 2022 Perth came in at number 31 on the Prime International Residential Index (PIRI 100) in 2021, with tracks movements in luxury prices across the world’s top residential markets.

Perth prime prices experienced 10.5 per cent growth, coming in behind Sydney (ranked 17 with 16.2 per cent growth) and Brisbane (ranked 29 with 11.2 per cent growth). Melbourne came in at number 39, with 9.4 per cent growth.

Every city recorded higher growth than the annual global growth of 8.4 per cent.

Over the coming year, Perth’s luxury prices are expected to continue growing, with a forecast rise of six per cent over 2022.

As prices have risen in Perth, how much internal luxury floorspace US$1 million can buy in the city has fallen below 100sq m to 98.4 sqm, behind Melbourne at 84.3sq m and Sydney at 41.4 sqm.

On the City Wealth Index, which assesses where the wealthy prefer to live, spend time and invest, Perth was ranked 67, which was the last of all the cities in Australia, but it was a significant improvement from 2021 when it was ranked 74.

The number of ultra-high-net-worth individuals in Perth rose by 10.5 per cent in 2021, and is expected to grow by another 23 per cent by 2026 to reach 2,408 from the current 1,961.

Mack Hall of Mack Hall Real Estate in Association with Knight Frank said Perth’s luxury residential market was strengthening in recent years and has plenty of growth still to come.

“If you look at how the city’s luxury market compares to other Australian cities, it’s evident that it is really only just gearing up, with big scope for further growth in the future,” he said.

“Now our borders have reopened to the world we have started to see greater visitor arrivals and more interstate and overseas investors looking for opportunities, which will equate to greater demand for luxury residential property.

“The wealthy are attracted to Perth due to the city’s relative affordability to east coast cities, especially for living near the water, as well as outstanding lifestyle, including its balmy climate.”

Knight Frank’s Head of Residential Asia Pacific Victoria Garrett said Perth, being in close proximity to Asia, was once again attracting many wealthy people from South-East Asia in particular.

“Our clients across South-East Asia have welcomed Western Australia’s border reopening and many still desire to purchase residential property in Perth,” she said.

“They find the prime luxury price point attractive over other Australian cities, and it’s a short flight home and within the same time zone, making it easier to do business.

“Due to the Australian foreign investment framework, our non-resident clients are restricted to buying new homes and there simply hasn’t been enough built in Perth’s prestige locations in recent years.

“With more apartment projects earmarked with high-end luxury amenities, this will be attractive not only to international buyers but those domiciled in Perth as travel is again on the agenda – and they can easily lock-up-and-leave.”

One of the suburbs set to capitalise from the ongoing growth in Perth’s prestige market is Applecross, in which Mack Hall Real Estate in Association with Knight Frank has just reopened a renovated office, after first establishing a presence in the premium riverfront suburb in 2018.

In The Wealth Report 2019 the Knight Frank team identified Applecross as 1 of 18 ‘Next Neighbourhoods’ – or prime residential hotspots - around the world.

Since then, prime residential property values in the suburb have continued to grow, rising by 12.2 per cent in the year to March 2022, compared to 11 per cent across all prime properties across Perth. 

In 2021, Applecross recorded 33 prime sales – ie. sales above $2 million – with an average sale price of $3.68 million.

These sales made up 46 per cent of the prime sales recorded in the surrounding Melville LGA, where the average sale price was $3.49 million, and accounted for 28 per cent of all prime sales across the Inner South Perth market, where the average sale price was $3.35 million.

Looking back to 10 years, ago, Applecross recorded just three prime sales in 2011, with an average sale price of $2.82 million and in 2018 the suburb recorded 24 prime sales with an average sale price of $3.47 million.

Mr Hall said the Applecross market was going from strength to strength, which is why Mack Hall In Association with Knight Frank had invested into renovating its local office.

“This affluent suburb will continue to be highly sought after by buyers,” he said.

“Not only is it close to the CBD, with good connectivity to three world-class universities, top private schools and other amenities including shopping centres, but it is picturesque.

“Applecross attracts both local and international families, drawn to its combination of proximity to Perth’s urban action and quiet suburban allure.

“This ongoing regeneration will introduce more high-density living, with well-appointed apartments starting from $1.1 million.

“Houses in Applecross start from $2.4 million, putting it among the ten highest-priced suburbs in Perth.”

For further information, please contact:

Mack Hall – Principal, Mack Hall Real Estate In Association with Knight Frank
Mack.hall@au.knightfrank.com +417 744 600

Vanessa De Groot – Marketing & Communications, Knight Frank
Vanessa.degroot@au.knightfrank.com +61 410 460211

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Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 16,000 people operating from 384 offices across 51 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the firm, please visit knightfrank.com.