Sydney has topped the list as the world’s best city to retire in, beating 25 other global cities to the punch, a new report shows.
For retired couples, Sydney ranked highly for the annual cost of health care, hours of sunshine a year and the cost of a cappuccino, Knight Frank’s Global Lifestyle Review 2016 report shows.
The research also considered Mercer’s quality of life ranking and the distance of each city to a major international airport. The Mercer ranking compared 230 cities across the world for 39 factors, including the political, economic and environmental aspects.
Malta and Luxembourg ranked second and third as the next best retirement spots. It did not include all capital cities, with Sydney being Australia’s only entrant on the list.
Many pre-retirees and retired couples in Sydney are already feathering their superannuation nest egg with profit made tax free on the price growth of their family home, Knight Frank head of research Matt Whitby said.
“With very strong price growth in the Sydney residential housing market, the trend of baby boomers downsizing, albeit not only in apartments, is well under way,” Mr Whitby said.
“The tree change and seachange is less of a trend compared to a decade ago, as amenity is improving in Sydney, transport infrastructure spend is at a record level and many grandparents simply want or need to be close to their families as support,” he said.
“Retirees also love to be around their existing friend base and close to quality amenity, healthcare and hospitals, quality restaurants and the airport, and Sydney is top of the list for all of these.”
The best global cities to retire in
|Ranking||Cities||Property market performance||Cost of annual healthcare||Hours of annual sunshine||Cost of a cappuccino||Distance to the airport*|
|2||Malta||4.9% (asking price)||$8,765.92||3000||$2.16||10|
|3||Luxembourg||5.1% (mainstream market)||$6,854.28||1550||$2.95||40+|
|4||Limassol||-1.2% (mainstream market)||$6,856.21||3900||$4.40||40+|
|6||Faro||1% (Western Algarve)||$14,467.72||3036||$1.33||5.2|
|=9||Copenhagen||10.8% (mainstream market)||$14,469.48||1650||$4.53||8|
Property market performance based on growth to December 2015
*Distance in kilometres from an airport with a direct flight from three of: London, Paris, New York, Singapore or Moscow.
How much it costs to live in Sydney...
Property Council of Australia NSW executive director Jane Fitzgerald was not surprised Sydney ranked so well on a global scale for retirees.
“With the upturn in residential development in the heart of the city, around the city fringe and in communities that are being regenerated, retirees wanting to downsize have all the upsides of city living combined with increasingly vibrant out-of-hours communities,” Ms Fitzgerald said.
But Sydney still had its challenges to make it truly desirable for residents, with the city facing the challenge of creating neighbourhood aspects within different parts of the CBD.
“The large-scale transport infrastructure investment in and around the city will only make Sydney living an even more attractive option,” she said.
Baby boomers planning now for their future retirement should consider areas in Sydney close to multiple forms of public transport, EPS Property Search director Patrick Bright said. A combination of ferry, bus and train, is a good option for those who can afford it, he said. This could include areas such as Balmain East, Mosman or Rose Bay.
“Most [baby boomer buyers] want to downsize but stay in or close to the suburb they are in now and either put the balance of funds into super or, if they can afford to, get a sea or tree change-type property as well,” Mr Bright said.
“They then want to float between the two.”
It wasn’t just retirees who should consider taking up residence in the harbour city. The Knight Frank report ranked Sydney equal fourth for entrepreneurs, matching Dubai, Geneva and Vienna.
Hong Kong, London and Vancouver topped the list for entrepreneurs looking for a new home, taking into account Mercer’s political risk ranking, airport access, local Michelin-starred restaurants, the cost of a bottle of champagne and leisure pursuits.
Sydney failed to make it into the top 10 cities for relocating families, which was topped by Luxembourg, Vienna and Hong Kong. One of Sydney’s weak spots compared to other cities was having just three international schools within a 10-kilometre radius.
Date: 23rd August 2016
Author: Jennifer Duke