The annual Christie’s International Real Estate Luxury Index is out.
The report, which synthesises and compares luxury housing metrics, acts as a measuring tool for the global luxury market and ranks the 10 top property markets in the world.
(* All prices in this report are presented in US dollars, with average exchange rates calculated between January 1, 2015 and December 31, 2015.)
To do this the Luxury Index rates the relative “luxuriousness” of primary market cities with at least one million residents.
It’s important to note that the starting benchmark for a luxury home around the world varies considerably, and has shifted significantly in recent years thanks to exchange-rate movements.
For example luxury prices range from under $1 million in Palm Springs to $8 million in Sydney, and $10 million in Monaco.
The average starting price for a luxury property worldwide is $2.2 million.
London took out the top gong, recording more luxury listings than any other city, as well as the world’s second most expensive residential sale in 2015 at $141 million.
Hong Kong narrowly edged out New York to place second in the Luxury Index, despite “negative annual overall sales growth and pressures from a decline in mainland Chinese capital outflow,” the report reads.
The harbor city posted the world’s top residential sale in 2015 at $194 million.
Sydney, the only Australia cities listed on the chart, dropped two places to 6th on the leader board just behind Singapore which has showed signs of an uptick following several years of declines due to government cooling measures.
Here’s the chart.
However limited supply in these luxury markets meant that selling times have improved.
In the majority of the surveyed markets, days on the market for luxury properties fell or remained constant in 2015 as compared to 2014, with the average days on market coming in at 195, a 23% from 2014.
A shortage of quality luxury stock in Sydney is “lessening the impact of the market softening in other price points,” says Ken Jacobs of Ken Jacobs in Australia.
Market attractiveness, coupled with inventory issues, saw markets like Sydney experience declines in time on market as well as a correlation in sales volume growth.
Sydney went from 93 days on market to 67 in 2015, Paris dropped to 165 days from 170.
Here’s a look a selling times from around the world.
Meanwhile, just over the ditch Auckland was named the world’s “hottest” city for luxury real estate.
The city, in the north island of the country, posted an incredible 63% growth in million-dollar-plus sales thanks to strong international and local demand.
Looking ahead to the remainder of 2016 and beyond, the report states that the global prime property market appears set to continue on a slow but steady growth cycle, with prices and sales volumes on an upward trend in some markets.
See the full report here.
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