The report highlights that prime waterfront locations in Sydney are limited, and owning real estate in Sydney Harbour remains a popular investment choice for ultra-high net worth individuals. Despite a decrease in transaction volume in Sydney's high-end residential market, its value has not diminished. This once again underscores Sydney's appeal as a prime location for both high net worth individuals and ultra-high net worth individuals for living and investment purposes.

Compared to other global cities, Sydney remains competitive in terms of value for money. According to the report, in Sydney, $1 million USD can buy approximately 43 square meters of prime property, whereas in New York, London, and Hong Kong, it can only buy 34 square meters, 33 square meters, and 22 square meters respectively. The fundamentals of Sydney's market, such as lifestyle, transparent governance and tax systems, and its unique harbor city scenery, are unlikely to change significantly, thus the popularity of Sydney is likely to endure.

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The report also found that luxury home prices in Perth rose by 5.2%, while the Gold Coast saw a 4.1% increase, and Sydney's increase in 2023 was 2.7%. This indicates that Sydney remains one of the leaders in Australia's luxury housing market.

With rising construction costs, developers are increasingly focusing on the luxury apartment market. Cash-rich downsizers and other buyers are turning to high-end apartments to enjoy a convenient urban lifestyle. To meet these demands, developers are creating projects with hotel-style concierge services, such as managed dry cleaning and dog walking, as well as adding facilities such as home theaters, wine cellars, and restaurants.

Despite the high prices of luxury apartments, market demand and prices continue to rise strongly. Real estate developer Aqualand has observed this trend in its Aura luxury apartment project in northern Sydney. Designed by renowned design firm Woods Bagot, the project is currently under construction and is expected to be completed by mid-year. The project will offer 371 high-end apartments and a range of premium facilities, just 3 kilometers from Sydney's CBD.

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Over the past year, sales activity for luxury apartments has shown growth, indicating a growing interest in high-end residences. According to PropTrack data, the click-through rate for new luxury apartments valued at $4 million USD or above nationwide increased by 6.7% compared to the same period last year, with significant increases in inquiries for large luxury apartments.

Developers have also been shifting their focus towards the higher end of the apartment market. The number of high-end apartments listed for sale on the realestate.com.au website valued at $4 million USD or above increased by 37% during the same period. In January this year, nearly one-third of apartments listed for sale on the website were priced at over $1.5 million USD, significantly higher than the national average apartment sale price of $626,000 USD.