perth boat show yacht rich high net worth
Photo – Henry Thai. Perth’s luxury property market is booming in light of the recent pandemic.
  • Perth tops Australian cities listed on international luxury properties price list
  • Auckland takes top spot for the world
  • Top trends are generally as expected with some notable exceptions

What defines a home has changed considerably throughout the past year.

Over 2020 through 2021, many have reconsidered how their personal sanctuaries feel, and how it reflects on their mood and daily lives.

Nikki Hunt from Roche Bobois told Tatler Asia that “the concept of home as a sanctuary isn’t brand new but the pandemic has given it a turbo boost.”

This is one of many themes that have reflected well on smaller cities as Knight Frank released its 2021 Wealth Report, and as part of it, the Prime International Residential Index, or PIRI.

The Index ranks the percentage change in luxury residential prices, and Auckland lead the pack, The Property Tribune recently reporting Auckland’s sky high property prices.

Other cities like Perth in Australia’s west rose from 63rd place, last place for Australian cities on the list last year, to 34th this year – coming out on top of Australian cities to feature on the Index.

piri prime international residential index knight frank
Image – Knight Frank, The Wealth Report 2021, Prime International Residential Index (PIRI).

Finding a space of your own was another trend, with coastal areas around the world seeing a jump in interest from ultra high net worth individuals, 56% movement, 47% in rural locations, cities only saw 20% more wanting to live amongst the distant memory of what used to be the hustle and bustle of a CBD.

Curiously, Asia bucked the trend with few looking for a sea change, many still coveting city life.

Closely following Perth (3.6% increase in luxury prices), the Gold Coast (+3.2%) came next for Australian cities on the PIRI list, then Brisbane (+2.5%), with big cities like Sydney (+1.1%) and Melbourne (+0.2%) bringing up the rear for Australian cities.

New York saw large drops, down 5.1%, Hong Kong 6.9%. Despite that, those cities still frequently rank in the top five for most expensive cities in the world.

The Knight Frank report mentioned the top 10 key elements that shaped luxury residential prices in 2020 were:

  1. Domestic demand
  2. Changing tax landscape
  3. A different market response to 2008
  4. Buyers bought big, bar Asia which didn’t see large changes to rural living
  5. Wellness and wellbeing became paramount
  6. Visas boost vis-a-vis short-term stays
  7. Scholarly surge as top international schools saw new neighbours
  8. Expats return home
  9. Second homes become “co-primary home”
  10. Currency changes meant lower prices

The author notes New Zealand is part of the Antipodes therefore technically Auckland is most prized.

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