Catering to the nation’s desire for luxury property
Australians’ obsession with luxury is set to continue as the nation is enduring a sustained rise in Ultra High Net Worth Individuals (UHNWI) and High Net Worth Individuals
Michelle Ciesielski, Head of Residential Research at Knight Frank Australia along with William Smart from Smart Design Studio will be on a panel of experts discussing the rise of luxury in Australia’s built environment as part of this year’s DesignBUILD expo.
The largest design and construction expo in Australia, DesignBUILD 2019, held in May in Sydney, is diving into trends of the current built environment with luxury one that can’t be ignored.
According to Knight Frank’s Wealth Report 2019, Australia has five cities in the top 50 in luxury residential market performance over the past year. Sydney, Melbourne, Brisbane, Perth and the Gold Coast experienced notable growth in luxury residential market performance globally.
“Knight Frank considers the prime (luxury) property market to be the most desirable and most expensive property in a given location, or the top 5% of the market ranked by value” says Ciesielski.
“Without a doubt, the lifestyle in Australia is unrivalled around the world with a transparent business environment and on a global scale, prestige property is relatively affordable.”
While international buyers are also behind the strong luxury real estate market locally, Australians are too driving this growth.
“Absolutely, luxury real estate must continue to grow to accommodate the 20% growth of UHNWI in Australia over the next five years and the 11,000 new millionaires created across Australia in 2018.
“Around the country, wealthy downsizers are making up a large portion of buyers attracted to large apartments with minimal upkeep, good security and high amenity,” she adds.
Ciesielski says that this growth in the luxury market can endure despite growth slowing in the mainstream property market.
“The luxury market is also less impacted (than the mainstream market) by the current tightened lending by the banks.
“In Sydney, there is still a significant undersupply of exceptionally luxury properties.
“We will see more apartments and townhouses reflecting the experience we receive when travelling overseas,” says Ciesielski.
Architect William Smart from Smart Design Studio agrees and explains how the nation’s ageing population is a driving force behind our luxury design outcomes.
“An older market tends to push people towards more timeless, quality outcomes, though not with all properties.
“It also means that people think about all the practical things like maintenance, operating costs, ease of use and practicality,” he says.
One of Smart Design Studio’s residential projects is the multi-award-winning Indigo Slam, a private house featuring a dining hall that can cater to 60 people along with a unique, elongated staircase.
“We are seeing more customised responses and less concern with a checklist for resale. For our luxury projects this is creating private gyms, day spas, art galleries and private dining rooms and the brief is to make them like no other space that has been seen before,” Smart continues.
The luxury market in Australia differs from overseas, with Smart defining the design outcomes that are unique to our prestige built environment.
“Australia’s architecture loves light, space and views, I believe more than anywhere in the world.
“Luxurious contemporary Australian architecture tends to weave layers of rich materials, like stone, wood and leather throughout these simple spaces to create bright and comfortable spaces,” Smart says.
For more information and to book tickets, please visit https://designbuildexpo.com.au/speaker-series/
‘Collectivity Talks: The rise of luxury in Australia’s built environment’ Wednesday 15 May 2019 DesignBUILD, ICC Sydney