Across Australia’s major cities a seven-figure cheque might not go as far on property as it did five years ago, but how do other countries across the world compare?
The latest Knight Frank Wealth Report measured how many square metres of prime real estate can be snapped up for $US1 million ($1.4 million).
Monaco remains the most expensive city in the world where property hunters could choose between purchasing an inner city car park, or 16 square metres of luxury property, with their hard-earned dollars.
Unsurprisingly, Hong Kong came in second, where $US1 million will get 22 square metres of prime real estate, while New York and London tied third at 31 square metres.
Sydney has the eighth-most expensive property market in the world. The same amount will get you 48 square metres of prime real estate, while Melbourne comes in at number 15, where you could pick up 90 square metres.
Buying in Sao Paulo will get you the most bang for your buck, where you can lounge around in 200 square metres of prime property.
Australia’s most spacious city, the Gold Coast came not far behind – those willing to splash the cash, will find themselves stretching out with a luxurious 136 square metres.
A decade ago, $1 million could buy 160 square metres of luxury living space in Brisbane, while on the Gold Coast, it would have paid for 173 square metres.
Perth is the only Australian city to buck the trend, with an increase in the amount of space you can buy, from 109 in 2008 to 116 square metres as at December 2018.
Knight Frank’s partner and head of Prestige Residential Australia Deborah Cullen said that at the end of 2018, $1 million could buy 52 square metres of prime floor space in Sydney – four more square metres than at the end of last year.
“Ten years ago marked the collapse of Lehman Brothers in the Global Financial Crisis and at this time you could buy 86 square metres of prime residential property in Sydney with your $1 million, 34 square metres more than what you could at the end of 2018. The equivalent to a prestige-sized kitchen,” she said.
“In 2008, $1 million could buy you 155 square metres of space in Melbourne; this has tightened to be 97 square metres.”
Adelaide, Hobart, Canberra and Darwin did not make the list.
Head of residential research Australia at Knight Frank, Michelle Ciesielski, said Australia’s cities became 7 to 8 per cent cheaper at the end of 2018 for those buying property with the US dollar due to currency fluctuations.
“Over the course of 2018, Sydney prime properties rose 3.1 per cent, but with a stronger US dollar, overall, the impact of the currency shift saw prices decline 7 per cent for someone buying a Sydney prime residential property with US dollars,” Ms Ciesielski said.
“When currency is factored into the sale price, we can often see a significant variance in the sale price for those purchasing residential property in Australia.
“When the US dollar appreciates rapidly against the Australian dollar, we have increased inquiries from high-net-worth expat clients taking advantage of how much more luxury residential property can be purchased.”
This article originally appeared in The New Daily.