In a higher-interest rate and lower-growth environment, picking the right residential property investment location becomes a more pressing issue. Our shortlist is influenced by the burgeoning requirement for market outperformance led by economic and employment growth, new infrastructure, regeneration, quality of education, environment and lifestyle.
A country on an upward trajectory. Structural reforms initiated by the current government place Vietnam ahead of other emerging markets. Importantly for investors, new rules were brought in during 2015 which opened up property markets to foreign buyers. The new metro line currently underway in Ho Chi Minh City will see District 2 and 9 outperform.
The European Union’s largest economy. Residential prices have increased 23% in the past five years, yet wages have kept pace resulting in good levels of affordability. Cities such as Berlin and Munich outperform and, despite strong housebuilding rates, the gap between demand and supply is set to expand.
Since the global financial crisis the US has led the developed world’s economic recovery and demonstrated an enviable ability to convert innovation into enterprise. This process has powered key cities with strong growth in employment and wealth creation. Significant inward demand from international investors should help mitigate the impact of higher interest rates and a strengthening dollar through 2016.
The city is just three years into a market recovery. Prices are growing, underpinned by limited new supply, while demand flows have been bolstered by Asian buyers. Improvements to urban centres, retail and the wider lifestyle offer are opening up new areas to investors.
Last year underlined the extent to which Madrid’s prime market has recovered with prime sales volumes up 25% yearon- year and prime prices outperforming many neighbouring European cities. Steady price growth looks likely to continue in 2016 as the impact of supply constraints are felt in the top districts of Salamanca, Jerónimos and Chamberí.
The city, along with Shenzhen, the other financial hub of mainland China, has turned a corner in economic and market terms over the past six months. Shanghai is seeing positive price growth on the back of continued urbanisation, a diverse and thriving service sector and a strong international community.
Shanghai, along with Shenzhen, has turned a corner in economic and market terms over the past six months
An area that remains one of central London’s very few overlooked residential markets. High-quality housing stock, a riverside location and proximity to established prime markets combine to ensure the area stands to benefit from the major regeneration work taking place in adjacent Victoria.
LOWER EAST SIDE - NEW YORK
New infrastructure, amenities and restaurants are driving price growth in an area burgeoning with luxury developments by developers like Ian Schrager and architects Herzog & de Meuron. Proximity to Nolita, SoHo, and the East Village is helping market product to investors.
The prime residential market in Chiyoda – along with Minato and Chūō, the two other central Tokyo wards – have performed well since the advent of Abenomics. While Japan’s overall population is in decline, Tokyo continues to see its numbers swell. Chiyoda’s residential market looks set to benefit from the 2020 Olympic Games, which will bring improvements in infrastructure and attract foreign investment.
A popular second-home destination, the arrival of the Commonwealth Games in 2018 has kickstarted investment, with a new light rail system and a AU$200m airport expansion planned. Competitive prices, compared with Australia’s top cities, plus strong fundamentals – local population growth and expanding tourism – underpin demand along the 57-kilometre coastline.
A perennial favourite with the super wealthy, the South of France is in the nascent stages of recovery. Last year saw an upturn in sales activity, with the village of Mougins and the exclusive Cap d’Antibes seeing strong demand.
The island’s prime market continues to outperform mainland Spain, with areas such as San José, the marina and properties in Ibiza Old Town generating strong interest. Year-round flights from most top European cities, good international schools and strong 4G internet connection have persuaded many wealthy young professionals in northern Europe to either relocate or commute long distance.
Located in the heart of The Three Valleys, the resort is increasingly viewed as the destination of choice in the Alps providing access to the world’s largest ski domain, good facilities and a vibrant village atmosphere.
Rising international demand has bolstered sales volumes which reached an eight-year high in 2015. The first US ski resort to cater for the super wealthy, it has expanded its facilities and rebranded itself as a year-round resort via numerous events and festivals.
Within easy reach of Geneva Airport, the resort offers a broad range of amenities while remaining competitively priced compared with other Alpine resorts. A recent pledge by the Compagnie du Mont Blanc to upgrade the lift system will strengthen demand further.