Prime properties up in Sydney and Melbourne

Prime properties up in Sydney and MelbourneSydney and Melbourne have risen to the 10th and 11th positions, respectively, in terms of prime residential prices, according to the latest Knight Frank Prime Global Cities Index.The index allows investors and developers to compare the performance of prime residential prices across a number of global cities. Prime properties are those occupying the top five per cent of the wider housing market in that city.Sydney and Melbourne have increased by 7.4 per cent and 7.2 per cent, respectively, over the past 12 months, with North American cities taking out three of the top four rankings for annual price growth. A previously strong performer, London slipped back in this year’s rankings.Overall, the index increased by 3.9 per cent globally in the year to March 2015.Michelle Ciesielski, Knight Frank’s associate director for Residential Research in Australia, says, “despite the mainstream market in Sydney over the same time achieving growth of 16.5 per cent for houses and 12.9 per cent for apartments, those purchasing prime properties in Sydney have preferred to wait for the right opportunity, at the right value.”In the two years following the introduction of the Significant Investor Visa in 2012, we saw more Chinese-based purchasers in the prime residential market.”We expect growth to continue in the top five per cent of the residential market with the current low interest rate environment, steady business confidence and a weaker Australian dollar than we saw when the Significant Investor Visa was introduced. “Attracting more net worth individuals to Australia, from 1 July, the government will be offering a more expeditious, 12-month pathway to permanent residency for those meeting an AU$15-million threshold under the Premium Investor Visa.”Read more in the Knight Frank Prime Global Cities Index.