Explosion in US$1 Million-Plus Residential Property Sales Heralds a Resurgent Global Luxury Housing Market | Be Korea-savvy

Explosion in US$1 Million-Plus Residential Property Sales Heralds a Resurgent Global Luxury Housing Market

Rear view of luxury home with swimming pool (image: Kobizmedia)

Rear view of luxury home with swimming pool (image: Kobizmedia)

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For the second year in a row, London tops “Christie’s International Real Estate Index,” which ranks the top luxury property markets globally, followed by New York and Los Angeles

NEW YORK, April 17, 2014 (Korea Bizwire) – The global luxury residential real estate market flourished in 2013,  with exceptional increases in the volume of US$1 million-plus market  sales, according to a newly released report on the international  prestige property market by Christie’s  International Real Estate, the world’s leading luxury residential  real estate network and the real estate arm of Christie’s art house.

Now in its second year, Luxury Defined: An Insight into the Luxury  Residential Property Market, presents an in-depth analysis of luxury  market trends and compares 10 of the world’s top property markets: Cote  d’Azur, Hong Kong, London, Los Angeles, Miami, New York, Paris, San  Francisco, Sydney, and Toronto.

Using ‘Christie’s International Real  Estate Index,’ markets were ranked across key metrics including record  sales price, prices per square foot, percentage of non-local and  international purchasers, and the number of luxury listings relative to  population.

London topped this year’s Index, with a US$101.5 million top  sale and average luxury home sale prices of US$4,683 per square foot.  New York and Los Angeles ranked second and third, respectively, driven  by exceptional growth in luxury sales volume. And despite government  cooling measures impacting sales volume, Hong Kong still performed  strongly, ranking fourth with an exceptional US$83.3 million top sale.

“With more millionaires and billionaires in the world than ever before,  pent-up demand and increasing consumer confidence, luxury real estate  sales surged in 2013 around the world,” said Bonnie Stone Sellers, Chief  Executive Officer of Christie’s International Real Estate.

“Strong  momentum in the global international luxury housing market was led by  cities such as San Francisco, New York, and London, which saw  year-over-year increases of 62 percent, 22 percent, and 20 percent  respectively, in the total number of US$1 million property sales.”

The Christie’s International Real Estate report identified a number of  key trends in each of the top markets, as well as in the broader luxury  housing sector globally. Highlights of the study include:

  • If 2012 was the year when the highest end of the luxury market came  back to life, 2013 was the year when the rest of the luxury market  flourished, with robust growth in the number of prime property market  sales — 41,700 sales were realized in the US$1 million-plus market  during 2013 within the 10 indexed cities, compared to 35,000 in 2012.
  • Low interest rates, limited inventory, and pent-up demand drove  significantly higher purchases by three prominent buyer groups: local  buyers at the lower end of the luxury market, buyers from the  millennial age group, and overseas buyers particularly at the top end  of the luxury housing market.
  • Changes to tax laws and other government market cooling measures  impacted some prime property markets, but in general these laws have  had little impact outside of Asia and France.
  • Luxury real estate shows a strong correlation with the top end of the  fine art market as opposed to the general housing market.
  • The luxury home markets that have rebounded the strongest are in urban  centers, although prized resort areas have begun to see some of the  luxury residential market’s recovery.

While the report focuses on 10 indexed markets, it also provides insight  into other key luxury residential areas around the globe including Rio  de Janeiro and Singapore as well as prized markets with a population of  less than 150,000, such as La Jolla, California; Monte Carlo, Monaco;  Punta del Este, Uruguay; and Sarasota, Florida.

Luxury Defined also explores the entry price point for the luxury  housing market internationally, which ranges from US$1 million in  Uruguay’s Punta del Este to US$3 million in San Francisco and US$7  million in London.

The white paper also presents a four-page chart  highlighting what US$5 million buys around the world — from a 2,000  square foot apartment in Paris to a 7,800 square foot five-story  residence in Chicago and an almost 14,000 square foot single family home  in Monterrey, Mexico.

The study can be accessed at www.christiesrealestate.com/luxury-defined

About Christie’s International Real Estate

Christie’s International Real Estate is an invitation-only Affiliate  network composed of the world’s most proven and qualified real estate  specialists in the luxury residential sector. The company has offices in  London, New York, Hong Kong, Beverly Hills, Chicago, and Palm Beach, and  more than 135 global Affiliates with 25,000 real estate professionals in  45 countries. For additional information about Christie’s International  Real Estate, please visit www.christiesrealestate.com.

Source: Christie’s International Real Estate (via BusinessWire)

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