Waterfront homes cost more than double their inland counterparts in Sydney, while in Melbourne homes on the water attract a price premium of almost 40 per cent, new research shows.

Buyers looking to snap up a home on Australia’s coastline are paying some of the highest waterfront premiums in the world, the latest Knight Frank International Waterfront Index shows.

Sydney topped the index, with waterfront homes in the harbour city attracting an average premium of 121 per cent, compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations, with a premium of 76 per cent. It was followed by the Gold Coast (71 per cent), Perth (69 per cent) and the Cap d’Antibes peninsula (59 per cent) on the French Riviera.

Brisbane (55 per cent) and Melbourne (39 per cent) were also in the top 10, along with Monaco (43 per cent), Phuket (41 per cent) and Dubai (40 per cent). Hong Kong rounded out the list, with a premium of 7 per cent.

There had always been strong appetite for Sydney’s waterfront homes, but demand had increased since the start of the pandemic, said Michelle Ciesielski, Knight Frank Australia’s head of residential research. Low supply has also kept upward pressure on prices.

While Australia’s luxury residential market had advanced, it did not have the same depth of prestige properties found in more established global cities, Ciesielski said.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.