Our annual research of the world’s top prime property markets is summarized in the Christie’s International Real Estate Luxury Housing Rankings. The Luxury Index gives a “luxury” ranking to each housing market and measures the top 10 performing prime property markets reviewed in this study. The Luxury Thermometer evaluates growth and demand, offering rankings of the “hottest” prime property markets worldwide.
The booming stock market prompted many investors to flow funds into luxury property
For the second year running, Hong Kong has seized the top slot in our Luxury Index rankings. With two residential sales above $100 million and significant annual growth in luxury home sales, Hong Kong led in almost all categories and once again set new sales price records for the region. The city-state takes the crown despite years of stamp duties to manage the limited supply of real estate and curb rising property prices. There still appears to be significant demand for premium real estate in the city, which saw continued demand from mainland Chinese buyers seeking to hedge against yuan depreciation.
Luxury sales, particularly in prime central London, were hit with four issues in 2017: Brexit, stamp duty land tax, a rise in interest rates, and a general election which resulted in Prime Minister May having a weaker mandate in Parliament
New York overtakes London to take second place in this year’s rankings. In New York, luxury price increases and robust sales volumes, particularly at the lower-end of the luxury market, bolstered the city’s Index position. Uncertainty over the impact of the UK’s EU Referendum and stamp duties increases have cooled London’s market, though the city still recorded strong top sales and average per square foot sales prices.
Miami drops off this year’s rankings, as a result of lower overall prices and a significant store of unsold inventory.
The luxury housing market in Paris went from strength to strength in 2017, especially since the election of President Macron, and this momentum has continued into early 2018
[ Excerpt from Christie's International Real Estate's 2018 Luxury Defined white paper on the international prime property market. Read more insights from the latest report here ]