Kate Everett-Allen reports on the regional ups and downs of the world's luxury residential property markets in 2017
Although Sydney’s mainstream residential market has cooled, in part due to tighter lending rules for investors, the prime end experienced strong growth of close to 11% in 2017 as a lack of stock, in particular detached homes, put pressure on prices.
A transformation of the Sydney Harbour foreshore is now under way with an impressive array of infrastructure and super-prime residential projects scheduled.
A prospering economy and its relative value have propelled Berlin high up the wish list of global investors. An historic undersupply of new homes combined with low home ownership rates, a stable political landscape and high quality of life have boosted demand. Prime prices typically start at €10,000 per sq m.Investors are seeking apartments in waterfront and central areas.
Prime prices increased by 7.3% in 2017. Tight supply and strong outbound capital flows from mainland China have boosted price growth despite more stringent capital controls and taxation changes.
Neighbourhoods such as The Peak, which set a new record price in 2017, and Mid-Levels are among the most desirable. Further US interest rate rises in 2018 may slow but are unlikely to halt price growth.
A strong regional economy, shrinking inventories and limited supply have protected prices in Los Angeles despite three rate rises in 2017. Domestic demand has proved steady and although the appetite of international buyers dipped marginally due to the strength of the US dollar, UK and European buyers remain active.
Prime prices ended 2017 just over 5% higher, with gated communities in Beverly Hills and Malibu outperforming the city average.
In 2017, Cape Town’s luxury residential market outperformed the city’s wider mainstream market by some margin. The area near Table Mountain, including the Atlantic Seaboard and City Bowl, attracted strong inward migration from other parts of South Africa, to add to already significant foreign buying activity.
Against a backdrop of constrained supply – landlocked between the mountain and the coastline, development opportunities are scarce – prime prices increased by almost 20% year-on-year.
Download the Report
Global Property Search
Kate Everett-Allen reports on the regional ups and downs of the world’s luxury residential property markets in 2017.
Super-rich populations are rising, but Europe is slipping down the ranks of the world’s wealthiest regions, according to new numbers compiled for The Wealth Report.