Gold Coast a second-home destination for super-rich
Move over, Monte Carlo and The Hamptons. There’s a new player amongst the world’s top cities where the wealthy are seeking out second homes, and it’s in our own backyard.
A new report singles out the Gold Coast as the number one hotspot for high net worth individuals to get their hands on a second house.
Knight Frank’s annual The Wealth Report puts Australia’s popular tourist mecca ahead of the Cote D’Azur in the south of France, and Spanish party island Ibiza, as the most popular destination for the world’s super-rich to splash on a second pad.
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The report analyses interactions between the wealthy and the world’s property markets.
Knight Frank’s global head of research Liam Bailey says in the report that ongoing infrastructure investment in the Gold Coast has seen it emerge as a major city of interest for the world’s richest people.
Competitive prices, compared with Australia’s top cities, plus strong fundamentals – local population growth and expanding tourism – underpin demand along the 57-kilometre coastline
“A popular second-home destination, the arrival of the Commonwealth Games in 2018 has kickstarted investment, with a new light rail system and a AU$200m airport expansion planned,” Bailey says.
“Competitive prices, compared with Australia’s top cities, plus strong fundamentals – local population growth and expanding tourism – underpin demand along the 57-kilometre coastline.”
Interest in the Gold Coast has rarely been higher, underlined by the upcoming Chinese-backed $1 billion Jewel development in Surfers Paradise.
The Jewel development in Surfers Paradise will have 500 apartments, 171 hotel rooms and dozens of luxury retail precincts.
Sydney also garnered attention in the report as one of the most important cities for high net worth individuals in 2016, jumping from 14th position to eighth.
“Over the past decade, The Wealth Report has ranked the cities that matter most to the world’s wealthy, based on where they live, invest, educate their children, grow their businesses, network and spend their leisure time,” Knight Frank Australia CEO Stephen Ellis says.
“Sydney has appeared in the eighth position due to its quality of lifestyle in these areas.”
Australians have also faired well amongst the rich set, with the number of people classified as high net worth individuals (those with US$30 million or more in assets) increasing by 135%, from 1281 to 3010 over the past 10 years, though there was a slight decline last year.
Location-wise, we continue to see exceptional buying opportunities in counter-cyclical markets such as Perth and Canberra
And most of Australia’s capital cities are also deserving of attention from property investors, according to the report.
Knight Frank’s global head of commercial research Lee Elliot says even Perth, which is currently experiencing high vacancy rates and poor yields, is worthy of consideration for investors.
“Location-wise, we continue to see exceptional buying opportunities in counter-cyclical markets such as Perth and Canberra,” Elliot says.
“Secondary stock has excellent fundamentals in the Sydney CBD and metropolitan markets. The generous yields and stable markets of Adelaide are attracting investors, while Brisbane, which is a market affected by the slump in the resource and commodities sector, is generally considered at, or near, the bottom, with an increase in buyer activity.”
