Why the world's richest are turning to Australia when buying prestige homes

There’s nothing like Australia, we say to attract tourists. But it’s a slogan that appears to be just as alluring for high net worth individuals (HNWIs) scouring the world for great prestige property to buy.

The newly released Knight Frank Wealth Report 2017 chronicles an annual net flow of 4000 HNWIs into Sydney, 3000 into Melbourne and 1000 to Perth. What’s more, Australasia in total is seeing the strongest regional growth in the number of incoming Ultra HNWIs – those with $US30 million or more in assets – at 11 per cent last year, with projections of 70 per cent more for Sydney and Melbourne over the next 10 years.

This bodes well for the continuing strength of our prestige market in the years to come. “Australia is increasingly well-positioned for the world’s wealthy as a good place to migrate and invest due to a number of factors, including lifestyle and relative security as HNWIs seek a safe haven from political upheaval,” says Michelle Ciesielski, Knight Frank’s director, residential research, Australia.

“Since the global financial crisis, the world’s wealthiest people have shifted their focus from the size of their returns to the safety of their capital.”

Australia, in general, and Sydney, Melbourne and Perth, in particular, are perfectly placed to capitalise on this migration, says Savills Australia national head of research Tony Crabb. We’re multicultural and have been welcoming well-heeled visitors for decades as tourists, businesspeople, students or for family reunions, with the ability to buy residency.

“So we’re seen as a comfortable place, with a strong rule of law, little corrupt officialdom, straightforward and transparent tax laws, stability and security with no sudden shocks in store,” he says.

“Prestige property is high on these visitors’ shopping lists. It comes in a range of different factors, like location, exclusivity, privacy and size. And if there’s nothing immediately suitable and low maintenance, there’s the capacity to consolidate a number of apartments into one or knock down and rebuild houses. Those HNWIs will continue to be entranced.”

111 Milson Road, Cremorne Point has high quality design and finishes.
Photo: Supplied

Quality properties with both water and city views, will attract them, too. Belle Property Neutral Bay agent Matthew Smythe says its style is immensely appealing to overseas buyers.

“Anyone who’s ever lived in Asia, New York or London will love this kind of beautiful grand character home on a block that’s very low maintenance,” he says. “They’ll like its quality, design and clever layout, with the self-contained apartment for visitors or extended family.”

An additional plus for any buyer is our proximity to Asia, particularly with our main inflow of wealth being from China. Their love affair with Australia shows no signs of cooling, believes Charles Pittar, chief executive of Juwai.com, the leading Chinese international property website.

He says 50 new HNWIs a month arrive through the Significant Investor Visa program – and four out of five of these are Chinese nationals. “Australia is like the Switzerland of the South Pacific,” he says. “It’s the perfect combination of developed-world opportunity and convenience and a relaxed lifestyle, beautiful environment and welcoming attitude.

The property at 111 Milson Road, Cremorne Point, has private gardens and is on 655 square metres.
Photo: Supplied

“We find that HNWIs the world over, but especially in Asia, are putting a new emphasis on health, happiness and quality of life. Australia is immensely appealing to them.

“We benefit from being part of Asia, which has the largest and fastest growing high-net-worth population in the world. Australia’s well-managed economy and property markets are very appealing to Asia’s wealthy, who often have made their fortunes in less regulated circumstances.”

The Parisian kind of feel of another of our featured homes, this time in Melbourne’s Prahran, would also be a lure for sophisticated, worldly HNWIs, says Abercromby’s Real Estate agent Tim Derham. “Buyers would love its position, so convenient for shops and restaurants and garaging is very important for that market, too.”

With our prestige property still looking undervalued compared with that elsewhere, the surge of HNWIs is likely to drive up prices, too.

“Prices in premium locations will continue to increase over time until they reach something closer to parity with international peers,” Pittar says. “And we will see the designation of some new locations as ‘prestige markets’ to accommodate the growing wealth and population of the country.”

Prestige buyers looking for hot property in Sydney may fix their eyes on 111 Milson Road, Cremorne Point. 

A deep-set balcony to curl up on, at 111 Milson Road, Cremorne Point
Photo: Supplied

The home is the best terrace home you’ll ever find in a suburb like Woollahra – but on the lower north shore, says Belle Property agent Matthew Smythe. Transformed 10 years ago from two separate terraces, with the highest quality design and finishes, it would suit families and downsizers alike.

“It’s a grand home, meticulously maintained and in one of the most highly sought-after destinations on such a prestigious peninsular in Sydney,” Smythe says. “It’s so close to the city yet surrounded by water with beautiful views.”

The house, with a pool and private gardens on 655 square metres, also comes with a feature that would appeal particularly to overseas HNWIs: a fully self-contained one-bedroom apartment on title, perfect for guests or extended family.

Entry is via a marble and oak lobby, and the interior design is by Fiona Sinclair Concepts, which includes a black marble stainless steel kitchen, living areas, French oak floors, marble terraces and a rooftop terrace with panoramic city skyline and Harbour Bridge views.