Five luxury property markets set to rise in 2017

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Smart investment: Shanghai, Sydney, Singapore, Monaco and Dubai will be top destinations for the super-rich

Hong Kong may have the most expensive luxury properties in the world, but it is not in the top five list of luxury property markets to invest in. This is according to international property consultant Knight Frank, which has listed Shanghai, Sydney, Singapore, Monaco and Dubai as the top destinations for luxury property investment for the super-rich.

Knight Frank’s Prime International Residential Index (PIRI) ranks luxury property prices in 100 cities worldwide.

According to PIRI last year, the value of urban luxury property increased on average by 2.4 per cent year-on-year, while beach or coastal property slipped marginally by 0.5 per cent. Average prices on the world’s prime residential market rose 1.4 per cent as compared to a 1.8 per cent growth in 2015.

Here are the reasons why these five cities are tops for luxury property investment this year.

1. Shanghai

Luxury property prices in Shanghai, the top commercial and most expensive city in China, areexpected to go up by almost 8 per cent this year. Last year, luxury property prices in the city soared by 27 per cent for investors. Last year some of the top-end developments were lapped up by buyers, and this year, too, agents expect high-end developments to be sold out as supply will be limited due to government restrictions on developers to curb runaway property prices.

A sales assistant speaks to a customer in front of a model of a residential complex, at a real estate exhibition in Shanghai. Photo: REUTERS

2. Sydney

This year the top Australian city’s value of luxury real estate is expected to increase by 5 per cent, according to various estimates. Last year, Sydney posted a 9.3 per cent price growth in high-end property and was ranked 11th in Knight Frank’s PIRI rating.

Downtown Sydney.

Last year a number of top commercial global cities slowed as far as luxury prices were concerned, but Sydney did not. The demand from Australians and overseas buyers, especially Chinese, would continue to fuel luxury property prices in the Australian city this year.

3. Monaco

The sovereign city-state in Europe is the playground of the rich and the famous. And every famous personality wants to own a house in the principality. Property consultants say that Monaco’s luxury prices would go up by 5 per cent this year after rising 1.03 per cent last year. The city state will continue to attract the international glitterati, mainly due to the Monaco grand prix, say property experts, and this year is no exception.

Monte Carlo, Monaco.

4. Dubai

Dubai, the gleaming city where the rich like to invest is another option for luxury property investors. It’s a luxury destination, and according to Knight Frank is expected to a 3 per cent growth in luxury property prices this year. Property agents say after a dip in last year’s luxury prices, Dubai is the right destination for investment as luxury property prices are reasonable and primed to grow this year.

The slowdown in Dubai’s luxury market is due to external factors: traditionally the majority of buyers in the city come from outside of the United Arab Emirates.

Jumeirah Beach in Dubai.

5. Singapore

Last but not least, the world’s leading tech city-state Singapore is expected to see a 2 per cent rise in luxury property prices, says Knight Frank. In 2016, Singapore was in 20th position, with a 3.4 per cent price growth. The Lion city’s luxury property market has cooled since 2011 when the government imposed strict cooling measures, especially on foreign buyers.

The Singapore skyline.

By Mukul Munish Courtesy SCMP

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