2021-10-14-莱坊-Perth_Prime_Residential_Review_Q3_2021_4页_1mb

Perth Prime Residential Review Summary - Q3 2021

Core Content

The Perth Prime Residential Review for Q3 2021 highlights the strong recovery and performance of the luxury residential market in Perth, positioning it as one of the top cities in Australia for price growth, rental yields, and property market dynamics.

Main Points

1. Market Recovery and Positioning

• Perth's luxury residential market is recovering strongly, showing the best price performance and rental growth in Australia.
• The market is also experiencing significant compression in the number of days prestige properties remain on the market.
• Perth is ranked 17th globally for annual price growth among 46 cities, and it holds the third highest share of Australia's ultra-high-net-worth individuals (UHNWIs) with 11% of the total, or 354 UHNWIs.

2. Wealth Trends

• Australian UHNWIs increased by 10.9% in 2020, reaching 3,124 individuals with net wealth over US$30m.
• The UHNW population is expected to grow at 3.8% annually over the next five years.
• Perth ranked 74th in the Knight Frank City Wealth Index, based on wealth, investment, and lifestyle indicators.

3. Prime Sales Performance

• Q2 2021 recorded the highest number of prime sales on record in Perth's prime regions, with 205 prime properties sold.
• This represents an 11% increase compared to Q1 2021 and a 128% increase year-on-year.
• The average days on market for prime properties in Q2 2021 was 112 days, down from 128 days in the previous quarter.
• Super-prime sales (properties priced at $7m+) were minimal, with only 1 sale recorded in Q2 2021, compared to 6 in Q1 2021.

4. Prime Price Performance

• Annual capital growth for prime property in Perth reached 8.9%, with a 6.3% increase in the last quarter.
• Knight Frank Research forecasts 9% growth in Perth prime prices by the end of 2021 and an additional 7% in 2022.
• Pound Sterling buyers were the most advantaged in terms of relative value, with $1m purchasing 99 sqm of internal luxury floorspace in Perth, compared to:
  • 46 sqm in Sydney
  • 30 sqm in London
  • 22 sqm in Hong Kong SAR

5. Prime Rental Performance

• Gross rental yields for prime properties in Perth rose by 54 bps to 2.36% in Q2 2021, up from 1.78% a year earlier.
• Annual rental growth was 8.6% for prime properties in Perth.

6. New Prime Development Pipeline

• 2020 saw 850 medium- and high-density new apartments and townhouses completed in Perth's prime regions, which was 50% less than in 2019 and below the 3-year average of 1,425.
• 2021 is expected to see a 38% decrease in completions, with 1,175 units currently under construction.
• The distribution of new apartments and townhouses in 2021 is expected to be:
  • Inner South: 600 units
  • Western Suburbs: 375 units
  • South: 125 units
  • Inner Perth: 75 units
• The bedroom distribution in the 3-year pipeline is:
  • 44% of units are 2-bed apartments
  • 28% are studio & 1-bed units
  • 28% are 3-bed+ units

7. Key Metrics (as of 30 June 2021)

Key Information

• Prime residential property is defined as the top 5% of each market by value, typically the most desirable and expensive properties.
• UHNWIs are individuals with net worth over US$30m, including their primary residence.
• The prime regions in Perth include specific postcodes in Inner Perth, Western Suburbs, Inner South, and South.
• Currency references in the document are in Australian dollars (AUD) unless otherwise stated.

Contact Information

• Research: Michelle Ciesielski - +612 9036 6659 - michelle.ciesielski@au.knightfrank.com
• Residential: Shayne Harris - +61 2 9036 6713 - shayne.harris@au.knightfrank.com
• Valuations: Alistair Carpenter - +612 9036 6662 - al.carpenter@au.knightfrank.com
• Franchise Partnerships: Scott Timbrell - +612 9761 1823 - scott.timbrell@au.knightfrank.com
• Private Office: Sarah Harding - +612 9036 752 - sarah.harding@au.knightfrank.com
• Media Enquiries: Caroline Stanley - +614 021 70901 - pr@au.knightfrank.com

Recent Publications

• Sydney Prime Residential Review Q3 2021
• Melbourne Prime Residential Review Q3 2021
• Brisbane Prime Residential Review Q3 2021
• Gold Coast Prime Residential Review Q3 2021
• Australian Residential Tennis Court Premium 2021
• Australian Prime Waterfront Index 2021

Disclaimer

• Knight Frank Research Reports are available at knightfrank.com/research.
• The reports provide strategic advice, consultancy, and forecasting for clients worldwide.
• The information is for general guidance only and should not be relied upon for decision-making.
• No liability is accepted for any loss or damage resulting from the use of this report.