Prime Time

Despite the tumultuous year that was 2020, many locations around the globe saw positive growth in prime real estate.

- Emily Pigeon

Savvy investors hoping to make the most of the global health crisis may be able to benefit from the thriving luxury residential market. Prime real estate industry prices are higher than pre-COVID levels, according to Knight Frank’s recent study.

Tracking the world’s top 100 residential markets, Knight Frank Head of Residential Research Australia Michelle Ciesielski said ‘The Wealth Report’ 2021 found the best performing cities over the past year.

“Globally, prime residential prices performed better than expected in 2020, with markets having to weather the global pandemic and associated economic turmoil,” she says. “The Prime International Residential Index 100 recorded annual growth of 1.9 per cent, marginally higher than the 1.8 per cent it recorded the year prior, but in countries around the world there were mixed results.

“In 2020, 29 per cent of locations saw prices decline year on year, up from 21 per cent in 2019, however, five markets also registered double-digit price growth in 2020, compared with just two over the previous year.”

Topping the list was Auckland, New Zealand. Deemed a safe haven away from the majority of chaos caused by COVID-19, the country has recorded fewer than 2,500 coronavirus cases. The experts revealed average prices at the end of 2020 were 17.5 per cent higher in Auckland, due to Prime Minister Jacinda Ardern’s smooth handling of the pandemic.

Of the top performing regions in 2020, Australasia and North America led the way, with average annual growth of 4.9 per cent and 6.3 per cent, respectively.