Melbourne and Sydney are both now classified as ‘global cities’. The term is predominantly used by economists and is defined as a city with a significant production point of specialised financial and producer services that make the globalised economy run.
That means that is not just local factors that affect the cities economic performance. Global factors also play a significant role to the performance of that city and vice versa. In Knight Frank UK’s The Wealth Report 2017 Melbourne and Sydney were noted as having the highest inflow of High Net Worth Individuals globally with an increase of 4% annually. 4,000 High Net Worth individuals entered both Sydney and Melbourne in 2016 – a huge number.
Australia wide, we have seen the number of Ultra High Net Worth individuals increase by +85% in the 10 years since 2006. One of the best performers globally. What this tells us is that Melbourne, Sydney and in the future Brisbane are becoming destinations of choice for those that have amassed wealth and seek a safe and clean environment with a stable Government for their families to live.
In the ATKearney 2017 Global Cities Report Melbourne and Sydney performed well across all metrics. These include business, government, economics, innovation culture and more. However, where Melbourne and Sydney stood out as some of the strongest cities globally was in environmental performance. Melbourne especially performed well, being the highest-ranking city globally for personal wellbeing.
With China just a 10-hour flight north and a growing upper middle class motivated to provide their families with a cleaner environment and less bureaucracy; it is no wonder our cities are growing rapidly.
The simple fact is that more wealthy individuals are striving to call Australia home. With the population increasing it seems our major cities will continue to grow economically and demand for quality housing will endure well into the future.