Waterfront Real Estate Still Globally Sought After

Sydney has the highest waterfront price premium of any top-tier international location this year, confirms Abode2.

Topping Knight Frank’s 2023 Global Waterfront Index, a waterfront property in the Aussie city typically sells for 118% more than a comparable non-waterfront home, down only marginally from 121% last year.

Sydney’s antipodean neighbour, Auckland sits in second place in this year’s rankings, with a waterfront home commanding a 58% premium.

European destinations including Monaco (42%), Cap D’Antibes (40%) and Paris (38%) complete the top five.

Beachfront homes tend to attract the biggest price premium of any international waterfront option – selling for an average of 76% more than a non-seaside property (up from 63% in 2022). Harbour and riverside locations have the next-highest premiums – but the data reveals the premium for a riverside location has swelled whilst a harbour destination has ebbed in the past 12 months.

The scale of the uplift is attributable to supply and demand. Frontline water access is a rarity in cities and protected areas of outstanding natural beauty. Tight building restrictions will limit the availability of stock, whilst on the demand side, investors vie for such homes alongside second home purchasers, given their rentability as holiday lets.

As you might expect from a marketing report promoting waterfront property, Knight Frank is bullish about the market outlook despite the wider economic landscape. “With rarity comes resilience,” says KF spokesperson Kate Everett-Allen. “The desirability of waterfront homes and the potential they offer as an inflation hedge alongside capital preservation is likely to see demand swell further given the current economic backdrop.”

Data from Rightmove Overseas supports that view. Waterfront search terms, from “sea views” to “lake” and “beachfront” accounted for four of their top ten keyword search terms in April 2023.