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More than 150 homes around the world changed hands for US$25 million (AU$34m) each in the past year, with a combined value of $6.9 billion.
According to Knight Frank's inaugural ultra-prime property list, analysing sales of more than $25 million (AU$34m) around the world, city markets have dominated with ski resorts and second-home markets representing almost one third of the rankings.
Hong Kong leads the measure in the highest average value of transactions in the 12 months to August at $52.8 million (AU$73.1m), thanks in part to low property taxation and the absence of taxes on capital gains and inheritances.
Singapore averaged $44.1 million (AU$61.3m) while Sydney managed $43.8 million (AU$60.9m).
Transaction volumes grew by 13 per cent in the year to 2017 with first eight months of 2018 recording 116 transactions worth a combined $5.1 billion (AU$7.1m).
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The highest number of ultra-prime sales over the year to August were in Hong Kong, where 47 homes priced at $25 million (AU$34m) or above changed hands. New York was in second place with 39 transactions.
London, which topped the rankings in 2015 with 72 ultra-prime properties totalling $2.9 billion (AU$4bn) changing hands, dropped to third place with 39 transactions.
In 2015, transaction volumes above $25 million (AU$34m) in London were almost double the number seen in any other location.
Yet, concerns over the Brexit referendum and higher stamp duty charges have stagnated the British market.
Combined transaction levels in New York, London, and Hong Kong, the report says, have increased by 12 per cent in the last two years, “with growth set to continue”.
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Almost all of Sydney’s ultra-prime transactions over the past three years occurred in the Eastern Suburbs of Sydney and all were for houses.
While Sydney was one of the smallest city markets in regard to transaction levels, it had some of the most spacious properties with the typical transaction encompassing plots of land, and an average saleable area of 1,976 square metres.
“Sydney is now established as one of the world’s top ultra-prime city markets,” Knight Frank’s partner Erin van Tuil said.
“We have seen the reality of this in the market response to Crown Residences at One Barangaroo.”
“Crown Residences has now offered UHNWIs a viable alternative to the traditional, free-standing harbour-side home in Sydney.”
Second home markets represent almost a third of ultra-prime locations, with the US represented by Malibu and Palm Beach, with the Cote d’Azur and Monaco representing Europe and the Caribbean a firm favourite with high-end purchasers.
Earlier this year, Knight Frank’s highlighted that the global ultra-wealthy population (AU$69m in net assets or more), grew by 18 per cent in the five years up to 2017 and is forecast to increase a further 40 per cent between 2017 and 2022.
Knight Frank has tipped cities such as San Francisco, Chicago, Dallas, Beijing and Shanghai to potentially be future additions to the ultra-prime rankings due to increased transactions and rising purchase prices.
Second home and ski destinations such as Sardinia, Portofino and other resorts in the French Alps are also seeing more activity at this level, which is “expected to continue”.
