The latest Knight Frank Prime International Residential Index shows that the most expensive homes in Sydney have increased in value by 11% in the past year, making the city the 13th fastest-growing in the world in its prime residential property market.

The report also reveals that Sydney is the world’s 7th most expensive city for luxury properties on a price-per-square-metre basis.

Melbourne’s prime property prices rose 8.5%, says the Knight Frank report, well above the global average of 2%.

In the last ten years, Australia gained 22,200 high net worth individuals, up 14%, giving it the world’s fourth fastest-growing rate of incoming wealthy migrants.

Matt Whitby, head of research at Knight Frank, says demand from Asian buyers for properties in Australia and New Zealand remains strong. “It underlines Australasia’s connection to the Asian region, and the appeal of its lifestyle, educational institutions and safe-haven status,” he says. “Wealthy Chinese investors have been dominant, exemplified by Australia’s significant investment visa, which, since it was introduced in 2012, has seen 90% of its applicants come from China.”