Waterfront homes deliver a 40% price premium globally, new research shows

Prices for prime waterfront properties around the world are on average 40% higher than comparable properties inland, new research has found.

Harbour side properties command the highest premium at 59.1% followed by beachfront homes at 58.5%, river side properties at 36.8% and lakeside homes at 32.7%, according to the Knight Frank Global Waterfront Report.

Australia dominates with Sydney have a price premium of 89.3% for waterfront homes, followed by the Gold Coast at 64.1% and Perth at 53.2%. Then comes Dubai at 50.7% and Paris with 48%.

The premium for these kind of properties in Hong Kong is 39.9%, while around Lake Geneva in Switzerland it is 32.7%. In Melbourne it is 30.4%, in London 30%, in Berlin 28%, in Monaco 11.1% and in Singapore jut 7.7%.

‘Waterfront addresses are amongst the most desirable in the world, however not all prime waterfront properties are equal and the premiums vary depending on location and amenity,’ said Liam Bailey, global head of research at Knight Frank.

‘The waterfront market is amongst the most liquid. Even in a depressed market, due to their position and scarcity, a frontline waterfront property will face strong demand with prospective buyers aware that their future exit strategy will also be assured,’ he explained.

The Knight Frank analysis shows there is some correlation between the volume of water and the premium generated. Where water is in abundance, such as island properties in Hong Kong and Singapore, the premium is smaller.

The report points out that the lifestyle and additional amenities that a waterfront home offers is a key motivation for many buyers. Waterfront homes are most popular amongst British buyers followed by the buyers from the United State, Canada and then Germany.

By classifying each property according to its characteristics and exact location, the data reveals that being located alongside a harbour generates the highest premium of 59.1%. However, at 58.5%, a beachfront home is not far behind with Sydney and the Gold Coast registering some of the highest uplifts.