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Is Byron Bay the new global hotspot for the ultra-wealthy?
Ultra-high-net-worth individuals may still have their sights set on Byron Bay, with competition for the New South Wales town’s real estate at an all-time high.
According to an Australian Financial Review article, Research from Knight Frank’s Wealth Report shows that Byron Bay is forecast to experience the highest growth in luxury home prices over the next five years.
It is predicted to overtake Como in Italy, Knightsbridge in London, and Orchard Road in Singapore in terms of luxury home prices.
A recent Domain House Price Report shows Byron Shire’s median house price skyrocketed in 2021 by 47.8% to $1.7 million, overtaking that of Sydney.
Only five years ago Byron Shire’s median house price was $805,000, meaning prices have more than doubled in half a decade (an 111.2% increase).
Michelle Ciesielski, head of residential research at Knight Frank Australia, said: “Our forecast analysis has identified the top global hotspot for the ultra-wealthy as being Byron Bay, Australia with prices predicted to rise between 30% and 35% over the next five years.”
“Competition for residential property here continues to intensify as Byron Bay’s environmentally minded council has limited the number of new homes built over the past decade.”
Meanwhile, Byron Shire Mayor Michael Lyon is crying out for a housing affordability reform, with “planning proposals sitting on the desks of the government”.
“The market is failing a large section of the community and communities across NSW. Housing is a human right. It’s not right that a large part of a community can be displaced by unprecedented market forces,” said Mr Lyon.
“The pandemic pales in comparison to the housing crisis in terms of the impact on our community. We can’t retain staff on council, staff that is on $80,000 a year, because of the housing crisis. It’s essential we create a mechanism to look after the working class,” he said.
Australia’s ultra-rich population set to soar
While most Australians have battled with global volatility and COVID-19’s economic impacts on their household budgets, our ultra-high-net-worth (UHNW) population is on track to hold more than $1.1 trillion in assets in the next five years.
And demand for luxury homes may intensify if the predicted increase of the ultra-rich population by the Knight Frank’s Wealth Report comes to fruition.
In 2021, Australia’s UHNW population alone increased by 10.1%, whereas global UHNW population growth increased by 9.3%. UHNW individuals are defined as those with a net worth of USD$30 million-plus.
“Our wealth model predicts growth of 31 per cent for this population over the next five years to 27,330 people, with the billionaire population of Australia expected to grow by a further 37 per cent over this time,” said Ms Ciesielski.
“It’s extraordinary to see such momentum in the growth of our UHNW sector in an economy and population of Australia’s size,” she said.
Knight Frank’s Wealth Report also indicates that one in four UHNW individuals plan on purchasing property in 2022. And if it’s not Byron Bay they have their sights set on, it may be the Gold Coast, with Knight Frank research showing it to be the country’s best performing city – ranking 12th globally - after luxury residential housing prices increased by 17.1%.
Sydney ranked 17th globally with 16.2% growth for luxury prices, followed by Brisbane at 29th (11.2%), Perth at 31st (10.5%) and Melbourne at 30th (9.4%).
Disclaimer
This article is over two years old, last updated on March 2, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product data updated on 18 Nov 2024
