Perth’s luxury market surpasses price growth of other global cities, climbs to 12th spot

The residential market in Western Australia’s capital performed well amid the stiff competition around the globe 

Luxury real estate in the suburb of East Perth, Western Australia, Australia. Daryna7/Shutterstock

According to the Prime Global Cities Index Q2 2020 by Knight Frank, the luxury residential market of Perth proved to be a strong competitor against the price growth of 45 cities across the globe, reported The West Australian.

With 2.3 percent growth from April to June and three percent for the past 12 months to June, Western Australia’s capital made its way into the 12th ranking. Other Australian cities that made the list were Gold Coast at 10th, Sydney at 11th, Brisbane at 16th and Melbourne at 24th spot.

For the past quarter, however, Perth was documented to having the most robust growth out of these cities. In the three months to June, it recorded 1.1 percent higher growth compared to the Gold Coast.

“Globally, the Prime Global Cities Index has reached its lowest rate of annual growth since the last quarter of 2009, when the world was in the grip of the global financial crisis,” said Michelle Ciesielski, the head of residential research at Knight Frank Australia.

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“The relatively strong performance of Australian cities was a result of the shallow number of listings, keeping property prices firm, and by global comparison, we have largely escaped the major impact of COVID-19.”

Vivien Yap, director at Ray White Dalkeith Claremont, added that the luxury market prices rose because of the enduring shortening of stock in Western Australia.

“Good properties are hard to come by, and get snapped up quickly so the competitiveness between buyers is the driving force in creating a higher price point. It is not surprising, because there is such a shortage of stock at the moment,” she concluded.