Prestige property prices

Prestige property prices tipped to rise through 2021: Knight Frank

PHOTO: 29 Kambala Road, Bellevue Hill. Photo: Sydney Sotheby’s International Realty

Prestige property prices are tipped to keep rising throughout 2021, fuelled by strong demand from local buyers, new research predicts.

Low interest rates and government stimulus are also set to underpin price rises for prime property,  that is, the top 5 per cent of each market by value, according to Knight Frank’s Prime Global Forecast for 2021.

It comes as Australia’s health and economic circumstances recover from the depths of the COVID-19 crisis, and vaccine trials show promising results, which could further boost the luxury housing market.

Sydney’s prestige property prices are forecast to rise 3 per cent next year, above the global forecast of a 2 per cent rise, Knight Frank said.

Melbourne prestige price growth is tipped at 1 per cent as sales pick up post-lockdown.

Mansions have been changing hands for bullish prices in recent weeks, including the sale of a clifftop house in Sorrento, the holiday playground of Melbourne’s elite, for a price understood to be in excess of $25 million. Records show the owners as Christine and Roger Kimberley, co-founders of the Just Jeans fashion chain. Kay & Burton chairman Gerald Delany confirmed the deal to Domain but would not be drawn on the price or the identity of the buyer.

On Sydney’s auction floors last weekend, a north shore buyer paid $16.66 million for a Vaucluse house he intended to renovate after it was listed with a price guide of $9 million to $9.9 million. And, a Bellevue Hill home sold under the hammer for $11.01 million, or $1.5 million above the reserve price.

“While we experienced great challenges this year with COVID-19, our data shows that prime property markets around the world have remained largely resilient,” Knight Frank head of residential research Australia Michelle Ciesielski said.