_Australia’s ‘Harbour City’ – The new mecca for the super-rich

More high-net-worth-individuals (defined as US$1m+) immigrated to Sydney than any other city in the world at last count; a trend which is expected to continue. As more of the world’s wealthy head Down Under, the number of Sydney’s high-net-worth-individuals is expected to increase 70% by 2026; while its population of ultra-wealthy (defined as US$50m+) is expected to increase by 37% in the next five years.

So why the sudden interest in Sydney?

There are a number of factors in play. There is strength in the Australian economy, with a stable, transparent government and investment opportunities abound.

But there’s also the fact that the world is getting smaller. With light speed internet access and international travel more convenient than ever, proximity is no longer the issue it once was. The world is changing, and so is Sydney’s position within it.

The Knight Frank City Wealth Index 2018, which considers wealth, investment, lifestyle and future factors, ranked Sydney the 11^th best city in the world. For investment, it was ranked 7^th best. In Q1 2018, US$1m could buy you 49 sqm of prime property in Sydney, as opposed to only 37 sqm in Singapore, 27 sqm in London and 25 sqm in New York.

And while there has been some talk about Sydney’s mainstream market falling, the reality is, it has merely settled. Almost untouched by the global financial crisis, Sydney’s prime market (the top 5%) has had an impressive sixteen consecutive quarters of top ten growth; a total growth of 61.7% in the past ten years.

As at March 2018, Sydney’s prime annual capital growth was 8.7%. All things considered, Sydney’s real estate market is as strong as it’s ever been.

The real issue for Sydney’s wealthy arrivals has been the lack of high quality residences; there simply aren’t any super-prime buildings in Sydney, top to toe.

Whilst prime investment stock is established, inner-city luxury residences are limited to penthouses. For the ultra-wealthy, the benefits of immigrating to Sydney has come with the cost of giving up the style of luxury accommodations to which they’ve grown accustomed.

But that’s about to change. Sydney’s Barangaroo precinct is currently undergoing one of the most significant urban renewal projects in Australia, transforming an inner-city wasteland into a prominent new neighbourhood. Within its newest development, One Barangaroo – a construction tipped to become as iconic as the Harbour Bridge and Opera House – will stand the exclusive Crown Residences.

Comprising of 82 private residences with sweeping views over Sydney harbour, these apartments, already under construction, will offer a kind of luxury living never before experienced in Australia.

Located on 22 hectares of prime waterfront property, in close proximity to bars, restaurants, shops and native parklands, it’s exactly the kind of residences Sydney’s new ultra-wealthy have been looking for.

As more of the world’s wealthy shift their focus toward Sydney, Sydney is stepping up to the plate. Having consistently outperformed on an economic level, Sydney is now about to take its place in the global arena for luxury residential property, ranking it amongst the likes of London’s One Hyde Park and New York’s One57. It’s hardly surprising, then, that the ultra-wealthy are now flocking to Sydney in droves. 

For more information please see the website, or contact Erin van Tuil, Director of Sales and Marketing, One Barangaroo on Erin.vanTuil@au.knightfrank.com or +61 409 325 700.

(Written by Susin Thoroughgood, Freelance Consultant)