GLOBAL WATERFRONT REPORT - 2019 RESEARCH - Knight Frank
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RESEARCH
GLOBAL
WATERFRONT
REPORT
2019
MEASURING THE PREMIUM A WATERFRONT PROPERTY GENERATES
IN KEY CITIES AROUND THE WORLD
GOING WITH
THE FLOW
Water resources have long played an important role in the pattern
of human settlement. Today however, owning a slice of a prime
waterfront is less to do with its transport or agricultural value and
far more to do with the iconic views and lifestyle it affords.
From the panorama of Sydney Harbour
to the serenity of Lake Geneva and from
Hong Kong’s bustling waterways to the
iconic Thames skyline, waterfront Waterfront properties are also
addresses are amongst the most
amongst the most liquid. Even
desirable in the world.
in a depressed market, due to
Such is the demand for frontline property, their position and scarcity, a
be it on a beach, river, lake or harbour we front-line waterfront property
thought we’d take a closer look at what will face strong demand with
price premium such properties generate
prospective buyers aware
and how this varies around the world.
that their future exit strategy is
According to the new Knight Frank Global also secure.”
Waterfront Monitor, compiled by
valuations from our global network, prices
for prime waterfront properties are on
average 40% higher than comparable
properties inland.
The index measures the potential value
uplift for prime homes on the water’s
edge compared with similar properties
located further inland without access to, The lifestyle and additional amenities
or a view of, water. that a waterfront home offers is a key
motivation for many buyers. From
40%
Not all prime waterfront properties are private moorings to jetties and quays,
equal, however, and much like the diverse waterfront properties offer easy access
nature of global property – from luxury to numerous watersports along with an
apartments in Chelsea to sprawling villas ever-changing panorama.
in Dubai and converted warehouses on
Berlin’s River Spree, premiums vary by By classifying each property according to
its characteristics and exact location, our
The average uplift location and amenity.
data reveals that being located alongside
for a waterfront Our data shows that individuals from all
over the world searched for prime
a harbour generates the highest premium
of 59.1%. However, at 58.5%, a
property across waterfront property last year, led by
prospective buyers from the UK, US,
beachfront home is not far behind with
Sydney and the Gold Coast registering
12 cities. Canada and Australia. some of the highest uplifts.
2 RESEARCH KNIGHT FRANKGLOBAL WATERFRONT REPORT 2019 RESIDENTIAL RESEARCH
FIGURE 1 FIGURE 2
Which type of waterside living commands the largest premium?
Knight Frank Global Waterfront Monitor
Premium calculated as at Q3 2018
LAKE
HARBOUR BEACH RIVER
59.1% 58.5% 36.8% 32.7%
FIGURE 3
Which nationalities are searching for waterfront homes?
LONDON 30.0% 1 Jan 2018-30 Oct 2018
BERLIN 28.0%
PARIS 48.0% LAKE GENEVA 32.7%
UNITED UNITED CANADA GERMANY FRANCE
MONACO 11.1% KINGDOM STATES 3 4 5
1 2
HONG KONG 39.9%
DUBAI 50.7% SWITZERLAND AUSTRALIA UNITED ARAB SPAIN ITALY
6 7 EMIRATES 9 10
8
Source: Knight Frank Global Property Website. Based on online viewings 1 Jan to 31 Oct 2018
SINGAPORE 7.7%
CHINESE BUYERS AND THE IMPORTANCE
OF FENG SHUI
GOLD COAST 64.1% Water has global appeal, by producing negative ions it boosts energy with research showing
it has significant health benefits.
For one particular world region – arguably the most important for global markets in today’s
PERTH 53.2% world – Asian and especially Chinese buyers, water is more than a mood enhancer but of critical
SYDNEY 89.3% importance when considering both where and the type of property to purchase. Feng Shui (Shui
meaning water) is usually fundamental to Chinese buyers’ decision-making.
MELBOURNE 30.4% Water signifies wealth in Feng Shui and can bring good fortune and prosperity. It should be
slow moving and clean, rather than stationary and stagnant. The property should be elevated
above the water and if on a river, should ideally be positioned on a winding section where the
pace of flow is slower. Fast moving streams and rivers are often avoided as this suggests
wealth is rolling away.
Source: Knight Frank Research
3 RESEARCH KNIGHT FRANK KNIGHT FRANK RESEARCH 4GLOBAL WATERFRONT INDEX 2019
2018 RESULTS
At 89%, Sydney sits in first place According to Taimur Khan, Knight Frank’s Berlin’s uplift of 28% is set to increase
generating the highest premium for Research Manager in Dubai, “Palm as availability of land along the River
waterfront properties. Here, homeowners Jumeriah, overlooking the Arabian Gulf, Spree lessens. According to Till Brühöfener-
vie for the best views of the Harbour is Dubai’s most desirable waterfront McCourt, Head of Research at Ziegert
Bridge or Opera House. Asked why location. The scarcity of the product, Immobilien, Knight Frank’s partner in
Sydney leads the rankings, Michelle along with the fact waterfront properties Germany “With fewer new-build opportunities
Ciesielski, Knight Frank’s Director of are usually best-in-class in terms of available and a finite number of properties,
Research comments, “From its iconic specification and amenities, has insulated values are rising, particularly those in the city
New Year celebrations to the starting values over the last decade.” centre close to Charlottenburg, Mitte-Mitte
point of the Sydney to Hobart yacht race and Friedrichshain.”
In Geneva, Cologny is the city’s most
on Boxing Day, residents are treated At 2.02 square kilometres, Monaco (11%)
desirable neighbourhood, however, the
to expansive views of one of the world’s is the world’s second-smallest state and
main Quai de Cologny road runs along the
best waterscapes.” nearly all of its 1,839 homes have views of the
perimeter of the Lake inhibiting the view
Mediterranean. This, combined with the fact
Waterfront properties are also amongst from this exclusive enclave. Instead, those
that the Rue de Princesse Grace hugs much
the most liquid (no pun intended). Even in seeking a lakeside home look to the
of the coastline means being in the heart of
a depressed market, due to their position neighbouring villages of Vésenaz or Anieres.
Monte Carlo or buying an apartment on a
and scarcity, a frontline waterfront Here, a frontline property sees a premium
higher floor to secure a prime vantage point
property will face strong demand with of 33%.
is almost as desirable as securing a home
prospective buyers aware that their future
Properties on the edge of the Thames in with direct waterfront access.
exit strategy will also be assured.
London generate a premium of around Analysis shows there is some correlation
Perth (53%), Dubai (51%) and Paris 30%. The Knight Frank Riverside area, which between the volume of water and the
(48%) sit mid-table but unlike Paris, where stretches from Fulham to Southwark, is premium generated. Where water is in
new-build opportunities are scarce and made up of around 13,000 properties, yet abundance – island properties such as
waterfront homes are older high-ceilinged this narrow belt alongside the Thames Hong Kong and Singapore – the premium
Haussmann homes along the Seine, both accounts for only 0.4% of the Central is smaller. Singapore registers the lowest
Perth and Dubai’s offering in terms of London’s 3.7 million housing stock. This premium (7%) and here our research
waterfront living is skewed towards scarcity of supply explains the uplift, a trend confirms that sea views command a
new-build beachfront living. that we are seeing reflected globally. higher premium than river views.
KNIGHT FRANK RESEARCH 5RESEARCH
Liam Bailey
Global Head of Research
+44 20 7861 5133
liam.bailey@knightfrank.com
Kate Everett-Allen
International Residential Research
+44 20 7167 2497
kate.everett-allen@knightfrank.com
MEDIA ENQUIRIES
Rebecca Sands
International PR Manager
+61 29 0366 833
rebecca.sands@au.knightfrank.com
Important Notice
© Knight Frank LLP 2018 – This report is published
for general information only and not to be relied upon in
RECENT MARKET-LEADING RESEARCH PUBLICATIONS any way. Although high standards have been used in
the preparation of the information, analysis, views and
projections presented in this report, no responsibility or
liability whatsoever can be accepted by Knight Frank LLP
2018
Branded Residences Report 2019
1
RESIDENTIAL RESEARCH
for any loss or damage resultant from any use of, reliance
Waterfront Branded
Residences
on or reference to the contents of this document. As a
VIEW
Report RIVERSIDE MARKET INSIGHT 2018
2019
Global Sales Focus
SALES MARKET ANALYSIS
Transaction levels for non new-build sales in
the Riverside property market were 3% higher
FIGURE 1
Sales volumes (excludes new-build sales)
general report, this material does not necessarily represent
the view of Knight Frank LLP in relation to particular
in the year to March 2018 than the previous Figures relate to the schemes shown in figure 4, excluding Riverlight and Battersea Power Station
12-month period. Indeed, trading volumes Battersea – Chelsea Bridge
have continued to strengthen since 2015, as Chelsea – Lambeth Bridge
Wandsworth - Battersea Bridge
figure 1 shows. Waterloo – Southwark Bridge
Hammersmith - Wandsworth Bridge
Meanwhile, average prices for non new-build 150
property declined 2.3% in the year to March
properties or projects. Reproduction of this report in whole
2018, having declined by 13.6% since the last
peak in September 2015. 120
Demand continues to grow and 18% more
prospective buyers registered in the year to
Number of sales
90
March 2018 than the preceding 12 months.
or in part is not allowed without prior written approval of
Viewings rose 11% over the same period and
the number of offers made increased 53%. 60
Matthew Smith, Riverside Office Head
“Prices have edged down over the last year 30
but the extent of the declines has reduced
Knight Frank LLP to the form and content within which it
notably. This bottoming out process follows
greater flexibility on the part of vendors, who 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
have become more accepting of asking
Source: Knight Frank Research / LonRes
price reductions following the introduction
of higher rates of stamp duty. The 3%
FIGURE 2 FIGURE 3
surcharge for second homes and landlords is
Price growth (rebased to 100 at January 2005) Average and maximum pricing data
appears. Knight Frank LLP is a limited liability partnership
particularly prevalent along the River Thames. Data relates to all sold properties in the Riverside
Riverside area, excludes new-build sales
“A pricing gap has inevitably opened up Prime central London
Price
between the newest and the established
230
developments along the river, which has led Average price Max price
210
to a more binary choice for buyers.
Year to March 2018 £1.06m £16.5m
registered in England with registered number OC305934.
190
“Following asking price reductions,
170 Year to March 2017 £1.18m £20m
properties in more established schemes
150
can represent good value for money, which Year to March 2016 £915K £15.5m
130
has led to relatively strong trading in some
£PSF
110
instances.
90 Average £PSF Max £PSF
Our registered office is 55 Baker Street, London, W1U 8AN,
“Meanwhile, demand is also strong for
12th EDITION the latest developments with state-of-the-
70 Year to March 2018 £1,355 £2,850
50
art amenities, for which buyers will pay a Year to March 2017 £1,475 £3,395
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Cover: One Barangaroo, Crown Residences premium. In both cases, buyers are heavily
Year to March 2016 £1,315 £3,120
scrutinizing the market and are driven by their
perception of value.” Source: Knight Frank Research Source: Knight Frank Research / LonRes / Land Registry
WEALTH TRENDS PRIME PROPERTY OUTLOOK
where you may look at a list of members’ names.
1
UK Waterfront Global Branded Australian Prime London Riverside
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