Perth takes on world's prestige markets with strong price growth: Knight Frank

A surge in business confidence has lifted Perth’s prestige property market.

In an international study of the luxury housing market it has ranked fourth in the world in terms of price growth between the start of 2017 and the start of this year.

With a 9.3 per cent price increase from the first quarter last year to the same period this year, it’s now behind only Cape Town, Zurich and Geneva in the Prime Global Cities Index Q1 2018, according to research from Knight Frank.

“You walk along the street in Perth and you can feel the optimism in the air,” says Michelle Ciesielski, Knight Frank’s head of residential research Australia. “There are now many buyers upsizing to take advantage of the turn in the market, especially at the prestige end, and many downsizing to prime property.

“In addition, we have investors with property portfolios looking for opportunities to take advantage of the value proposition Perth offers compared with the east coast. And we now feel that it’s very likely the growth in the prestige market will continue for the rest of the year.”

Knight Frank’s Australian Prime Residential Review 2018 found Perth’s prime property annual growth to be 2.8 per cent in the year ending this March. The number of sales of $3 million-plus in the first quarter this year is already 29 per cent of 2017’s sales, which again was nearly 30 per cent higher than in 2016.

The strengthening economy is helping drive Perth’s recovery, agrees Savills Australia WA managing director Graham Postma. “We’ve just commenced our upward swing and we’re now starting to see positive announcements from the major resource companies – so there’s employment growth, which means more demand for residential property,” he says.

The top three performing areas of Perth are Peppermint Grove, Cottesloe and Nedlands, but agents throughout the city are experiencing high demand and a shortage of supply. At William Porteous Properties International, demand is far outstripping supply of prestige property.

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“That prestige end of the market is doing very well, from older homes at $6 million to well-designed newer houses at $15 million,” director Peter Robertson says. “That market is very discerning and there’s high demand for good properties in good locations but, with the lack of supply, if some people can’t find exactly what they’re after, they’re waiting till spring.”

Three homes in the area

33 Saunders Street, Mosman Park

Photo: Supplied

Listed for around $6.999 million-plus, this waterfront home has been renovated throughout and boasts panoramic river-to-city views. 

“It has been designed over three separate levels to serve a multitude of family dynamics,” says selling agent William Porteous of William Porteous Properties International.

85 Philip Road, Dalkeith

Photo: Supplied

It’s all about luxe finishes and features in this tri-level residence, from American White Oak and stone in the kitchen, travertine flooring, and a temperature-controlled cellar for your wine collection.

Amanda Gray of GRAY & CO. REALTY has the listing.

8 Taworri Way, City Beach

Photo: Supplied

This coastal five-bedder was built for indoor and outdoor entertaining, and counts a six-car croft garage and a gym as some of its luxury features. 

Jason Jowett of Realmark Coastal has given it a guide of $7 million-plus.