The luxury real estate market in Australia has witnessed a surge in demand this year, driven by cities like Melbourne and Brisbane, along with affluent suburbs such as Kew and Hawthorn. Knight Frank’s ‘Australian Industrial Review Report’ for Q2 2023 reveals that industrial vacancies in the eastern seaboard cities of Australia have significantly decreased compared to the previous year, leaving only 526,806 square meters of vacant space.
During the quarter, Melbourne and Brisbane reported a notable 19.5% increase in available real estate and industrial spaces, while Sydney recorded a decrease in this regard. Among these cities, Melbourne stands out, experiencing the most substantial rise in sale prices in August. The median real estate price in the city is reportedly ten times higher than in other Australian cities. In Q1, Melbourne secured the top spot in Expatra’s report, listing it among the five most desirable locations for British nationals relocating to Australia.
Australia’s luxury property market has also been influenced by international high net-worth individuals (HNWIs) seeking suburban luxury homes, a trend that has gained momentum in the wake of the Covid-19 pandemic. Prestigious areas like Toorak, Hawthorn, and Kew have witnessed an upsurge in multimillion-dollar listings, often featuring properties valued at over A$10 million.
Knight Frank’s report emphasises that, as prices continue to rise, luxury homes will need to incorporate distinctive features such as gyms, saunas, wine cellars, and internal lifts to maintain their appeal.
When these international high net-worth individuals consider purchasing primary or secondary residences in Australia’s luxury property market, they will need to employ secure money transfer methods for their transactions.
Jennelle Wilson, Partner in Research and Consulting at Knight Frank, attributes much of the increase in industrial vacancies during Q2 to new speculative builders. She notes that 48% of the available East Coast vacancies are intended for speculation, and 42% are currently under construction, with a strong focus on serving high net-worth individuals.
According to Wilson, the number of recorded sales in Q2 remained on par with Q1 figures. However, due to rising prices, Q2’s luxury real estate and industrial investment market recorded a turnover of around A$600 million.
James Templeton, Knight Frank’s National Head of Industrial Logistics, attests that the real estate market is experiencing newfound confidence driven by renewed demand for luxury properties and large-scale assets.
For international high net-worth individuals interested in purchasing homes in Australia’s luxury property market, securing a reliable method for international payments between countries will be essential. For this purpose, utilising a money transfer comparison tool can help identify the best available exchange rates, enabling seamless cross-border transactions.
