_Which Australian city generates the highest waterfront property price premium?

The index demonstrates that high demand for waterfront property, spurred on by the pandemic, is causing high price premiums.

Sydney leads the rankings at a premium of 121%, with Gold Coast coming in third at 71% and Perth ranked fourth at 69%. 

According to Michelle Ciesielski, Head of Residential Research at Knight Frank Australia, “Regardless of the season in Sydney, there is always strong appetite for waterfront homes, especially those with uninterrupted iconic views of the Sydney Harbour Bridge and Opera House.”

Image: Norfolk Darling Point overlooking Rushcutters Bay with harbour views

Key findings from the Index:

• The average international premium for a waterfront property compared with a non-waterfront home was 40% in Q2 2022.
• The top five markets by premium are: Sydney (121%), Auckland (76%), Gold Coast (71%), Perth (69%) and Cap d’Antibes (59%).
• A waterfront property in the city with iconic views across a harbour attracts an average premium of 121% compared to an equivalent home set away from the water.
• In the 12 months to June 2022, the average price increase for a waterfront property in the index was 10.9%.
• 42% of respondents to Knight Frank’s Global Buyers Survey stated they were more likely to buy a waterfront property as a consequence of the pandemic.

Michelle Ciesielski provides further commentary on the findings: “Resort style waterfront homes offering heightened security and privacy, continue to perform well in the Sydney prestige market. These homes are still attracting demand from both domestic and international buyers, including expats from Hong Kong, the US and the UK.

Increasingly more buyers of waterfront homes on the Gold Coast are coming from the relatively more expensive cities of Sydney and Melbourne, so record prices are being achieved, most notable since the start of the pandemic.”