Are beachside homes still a good investment? Coastal real estate in Thailand, Australia and Israel commands mouth-watering prices – and rising sea levels are not stopping wealthy investors
- Waterfront property attracts a premium of more than 40 per cent in Monaco and Dubai – and up to 75 per cent more in Sydney, Auckland, Gold Coast and Perth
- Despite the risks of climate change, the limited supply means beachside homes are only getting more desirable – here are three key markets where investors can make millions quick
The most aspirational of all real estate, coastal homes often command a premium only the wealthy can afford, with their scarcity adding to the exclusivity.
According to second quarter 2022 data from Knight Frank, the current average international premium for waterfront property (versus non-waterfront) is 40 per cent. Beachfront commands the highest (63 per cent), followed by harbourfront (62 per cent).
Australia leads the pack with four cities in the top four of Knight Frank’s International Waterfront Index. Waterfront homes in Sydney command a whopping 121 per cent more, followed by Auckland (76 per cent), the Gold Coast (71 per cent) and Perth (69 per cent).
Elsewhere, Monaco’s waterfront premium is 43 per cent, Phuket’s 41 per cent and Dubai’s 40 per cent.
Mark Harvey, head of international residential at Knight Frank, says the allure of a waterfront home remains strong and one of the most compelling property segments with international buyers today.
“Over the past year, we have seen significant interest for major waterfront metropolitan cities,” he explains. “Locations such as Sydney, Dubai, Monaco, Los Angeles, Miami and Auckland in particular have set the trend while destinations such as the Hamptons, the Caribbean and the Mediterranean are also proving hugely popular as more clients feel less tied down to a single destination and begin to integrate work/life balance into a second or third home.”
Philip White, president and CEO of Sotheby’s International Realty, agrees.