Sydney is the location of choice for wealthy residential buyers from Hong Kong, according to international real estate group Knight Frank’s Global Development Review 2013.
The study places Sydney ahead of major international urban centres, including London and Tokyo, when it comes to Hong Kong buyers, as well as those from Indonesia – though it sits behind Singapore and Kuala Lumpur for the latter.
However, Knight Frank’s global head of residential research, Liam Bailey, says that while the flow of wealth into residential property is expected to increase, buyers’ expectations are also rising.
“Developers are increasingly bringing more high-specification ‘trophy’ buildings to market. The importance of partnering with a renowned architect and designer, a good location and the appeal of serviced apartments should not be overlooked. This ‘flight to quality’ is evident in nearly all prime markets as buyers recognise the importance of getting the best properties in the best locations.”
On a global scale, Chinese buyers are dominant in the residential development sector and are the most active foreign buyers in the Sydney and Hong Kong markets.
“Chinese buyers’ global presence is fuelled in part by a strong yuan and slowing domestic economy, both of which are encouraging Chinese investors to look further afield in an attempt to diversify their investments,” reads the report.
“Singaporean and Russian investors are the next most active buyers of new-build residential property around the world.”