Hong Kong has the world’s most expensive luxury property market, according to a recent report compiled global real estate consultants Savills.
Out of 10 “world class” cities profiled in the report — Hong Kong, London, Moscow, Mumbai, New York, Paris, Singapore, Shanghai, Sydney and Tokyo — the average £6,700 per square foot price of Hong Kong luxury homes ranked the highest in the world.
According to CNN, Tokyo followed Hong Kong with a £5,190 price per square foot. Paris came in third on the list, with luxury flats averaging £3,270 per square foot.
The report pointed out that Hong Kong’s luxury homes were, per square foot, twice as expensive as London’s and more than 10 times more expensive than Sydney’s.
According to the report, Hong Kong’s inflated prices are fueled by market demand for “trophy homes,” especially from Mainland Chinese investors, and the city’s limited supply.
“Many more of the world’s billionaires are being created in China, rather than in New York or London, and it is shifting the buying patterns,” Yolanda Barnes, director of residential research at Savills, said.
Savills also reported the cost of luxury homes is rising fastest in “emerging ‘new world’ economies”.
Prices for luxury homes in Singapore grew by 144 per cent since 2005, while prices in Mumbai rose by 138 per cent, Moscow by 110 per cent and Hong Kong by 83 per cent in the past six years.
But while Hong Kong’s luxury homes took first place on the list of highest price per square foot, Savills’ report noted that luxury homes in Tokyo were actually the most expensive in total value since they generally tended to be bigger, averaging about 16,000 square feet.
Tokyo is also home to the most expensive flat, an £83 million property, out of all the cities surveyed.View Comments