Harbourfront homes attract up to 97pc premium

Waterfront views in Brisbane added 45.1 per cent premium to the property value. This is the first year Brisbane has been included in the index.

By contrast, Melbourne saw the premium dropping from 30.4 per cent to 27.3 per cent during the same period.

Michelle Cielsielski, head of residential research at Knight Frank, said that in Melbourne waterside living was not as desirable as being well located to private schools and traditional shopping villages.

Prime coastal properties enjoyed an uplift of up to 61 per cent compared to similar properties inland, while riverfront homes achieved a premium value of more than 57 per cent.

“Not all absolute waterfront homes are equal and this was reflected in the index, with premium values varying in each city, and by the type of waterfront,” Ms Cielsielski said.

“It’s common to see those buying prestige properties redesign the home to match their style, but fundamentally, the waterfront location remains.

“Waterfront living is the ultimate lifestyle choice and this helps to underpin the value of these properties.”

Of the total number of super-prime sales across Australia in the year to the third quarter of 2019, the proportion of absolute waterfront property sales rose to 42 per cent.

This was the highest share recorded when benchmarked to previous years, when the portion of total super-prime sales ranged from a low of 28 per cent in 2014 to 39 per cent in 2018.

“Demand for super-prime waterfront property comes from a variety of buyers, ranging from an emotional purchase, to a sole financial purpose given waterfront properties are generally the most liquid within each market,” Ms Cielsielski said.

“Beyond the waterfront location, access to amenities is also a critical factor for many buyers and having direct access to water is something many buyers are willing to pay an additional premium for.”

Source link Business News Australia

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