The report entitled '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, Los Angeles, Miami, New York, Paris, San Francisco, Sydney, Toronto and London. 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 the Index with the highest record home sales price of all the cities investigated – at $101.5 million. Square foot prices in London were also higher than any other city - averaging $4,683 in London in 2013, significantly greater than the second highest found in Hong Kong at $2,578.
Interestingly, the entry price point for luxury property in London was found to be the highest of any market analysed, at $7.8 million. London also saw a 20% increase in number of luxury property sales in 2013 – 5,693 properties in total.
Price increases and supply constraints did little to detract buyers in prime Central London as 2013 recorded the highest number of home sales since the 2006 peak, with significant growth in high priced transactions.
Lulu Egerton, Partner at Strutt & Parker, said: “Although over the past year we have seen a surge in domestic demand, international buyers still account for just under 50 per cent of Knightsbridge and Chelsea buyers and have fuelled much of the activity at the top end of the market, pushing the number of sales over £5 million up 7.5 per cent year-on-year.”
Second home buyers accounted for 48 per cent of buyers in London – attributed to a surge in high net worth individuals from turbulent markets looking to move equity into stable and currency-favourable locations.
Andy Martin, Senior Partner at Strutt & Parker, said: “We continue to see a flight to great cities. A transparent, secure, and liquid market is attracting homebuyers from all over the world to London, a truly cosmopolitan city offering one of the world's great lifestyles.”
