Luxury waterfront properties in Sydney command the highest premiums in the world, with the Harbour City taking out top spot in this year’s international waterfront index.
According to this year’s Knight Frank International Waterfront Index, Sydney leads the rankings followed by Auckland in second position, the Gold Coast in third, and Perth in fourth.
The index measures the difference in value for waterfront homes compared with similar properties located further inland without access or views of the water.
High demand throughout the pandemic has seen the premium for a waterfront home increase, with Sydney homes now fetching a 121 per cent premium compared to an equivalent home set away from the water.
The Gold Coast attracts a 71 per cent premium for a waterfront home, while Perth sits at 60 per cent.
Head of residential research at Knight Frank Australia, Michelle Ciesielski said Sydney in particular always saw strong demand for water views.
“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,” said Ms Ciesielski said.
“A waterfront property also offers the potential for maritime facilities, and we’ve seen elevated inquiries since the pandemic.
“There’s only a limited number of prestige properties on the harbour due to nature reserves and parklands.”
New Zealand’s Auckland on the country’s North Island was second in the overall international rankings with a premium of 76 per cent, while The Cap d’Antibes peninsula (59 per cent) in the South of France was the highest European entry in the list of 17 international locations.
The pandemic and successive lockdowns have put greenery and space at the top of buyers’ requirements for homes, fuelling sales and price growth in prime regional markets. Low supply has also kept upwards pressure on prices.
Successive lockdowns around the world have pushed the appeal of waterfront living to the forefront, with 42 per cent of respondents to Knight Frank’s Global Buyers Survey stating they were more likely to buy a waterfront property as a consequence of the pandemic.
In the past 12 months, the average price increase for a waterfront property in the index was 10.9 per cent.
The average international premium for a waterfront property compared with a non-waterfront home was 40 per cent in Q2 2022 according to the report.
Beachfront property was the most sought-after location, with waterfront property attracting an average premium of 63 per cent.
This narrowly beat a harbour location (62 per cent), with coastal, where waterfront buyers pay an average premium of 40 per cent, in third position.
Senior research analyst at Knight Frank, Chris Druce said the pandemic has led to a fundamental reassessment of housing and lifestyle requirements.
“For many being near the water with more space and greenery has been a primary driver, and with supply limited in all markets this has supported price growth and premiums,” Mr Druce said.
