Global Real Estate Assets Rose 5% In 2020
Residential appreciation fueled the overall growth.
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The insatiable appetite for home buying last year saw the world’s real estate assets—the most significant store of wealth globally—jump 5% in value to a record high in 2020, according to a report Wednesday from Savills.
Last year’s price appreciation left the total volume of global real estate assets at $326.5 trillion, a figure that’s more than all global equities and debt securities combined, and worth almost four times that of global GDP, the estate agency said.
“Government stimulus in the wake of Covid-19 means there is plenty of capital at large, and real estate is viewed as a safe store as global investors search for income in a low-interest-rate environment,” Paul Tostevin, director of the Savills world research team, said in the report.
“While real estate’s capital value annual growth of 5% in 2020 is lower than those seen in securitized debt, equities and gold, at 17%, 20% and 29% respectively, it is the extra income component of property which makes it such a compelling purchase for many buyers,” he added.
The gains were driven by the residential property sector—which accounts for 79% of all global real estate value—a market that has thrived amid the pandemic as homeowners rush to larger homes better suited for working from home and lockdown living.
The sector saw its value increase 8% last year to US$258.5 trillion, pushed up in particular by activity in China.
China is home to 30% of the world’s residential wealth, and the segment recorded gains of 13% in 2020, driven by “strong price growth coupled with the delivery of new supply,” Savills said.
After China, the U.S. accounts for 11% of the global residential wealth, and the two countries along with Japan, Germany, the U.K., France, South Korea, Canada, Italy and Australia, make up 75% of the global residential total.
The value of global commercial property, meanwhile, fell 5% in 2020 to US$32.6 trillion, and is expected to rebound in 2021 and hit a new peak by the end of the year.
Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: September 22, 2021.
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This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
A Sydney site with a questionable past is reborn as a luxe residential environment ideal for indulging in dining out
2 min
Long-term Sydney residents always had handful of not-so-glamourous nicknames for the building on the corner of Cleveland and Baptist Streets straddling Redfern and Surry Hills, but after a modern rebirth that’s all changed.
Once known as “Murder Mall” or “Methadone Mall”, the 1960s-built Surry Hills Shopping Centre was a magnet for colourful characters and questionable behaviour. Today, however, a $500 million facelift of the site — alongside a slow and steady gentrification of the two neighbouring suburbs — the prime corner property has been transformed into a luxury apartment complex Surry Hills Village by developer Toga Group.
The crowning feature of the 122-apartment project is the three-bedroom penthouse, fully completed and just released to market with a $7.5 million price guide.
Measuring 211sqm of internal space, with a 136sqm terrace complete with landscaping, the penthouse is the brand new brainchild of Surry Hills local Adam Haddow, director of architecture at award-winning firm SJB.
Victoria Judge, senior associate and co-interior design lead at SJB says Surry Hills Village sets a new residential benchmark for the southern end of Surry Hills.
“The residential offering is well-appointed, confident, luxe and bohemian. Smart enough to know what makes good living, and cool enough to hold its own amongst design-centric Surry Hills.”
Allan Vidor, managing director of Toga Group, adds that the penthouse is the quintessential jewel in the crown of Surry Hills Village.
“Bringing together a distinct design that draws on the beauty and vibrancy of Sydney; grand spaces and the finest finishes across a significant footprint, located only a stone’s throw away from the exciting cultural hub of Crown St and Surry Hills.”
Created to maximise views of the city skyline and parkland, the top floor apartment has a practical layout including a wide private lobby leading to the main living room, a sleek kitchen featuring Pietra Verde marble and a concealed butler’s pantry Sub-Zero Wolf appliances, full-height Aspen elm joinery panels hiding storage throughout, flamed Saville stone flooring, a powder room, and two car spaces with a personal EV.
All three bedrooms have large wardrobes and ensuites with bathrooms fittings such as freestanding baths, artisan penny tiles, emerald marble surfaces and brushed-nickel accents.
Additional features of the entertainer’s home include leather-bound joinery doors opening to a full wet bar with Sub-Zero wine fridge and Sub-Zero Wolf barbecue.
The Surry Hills Village precinct will open in stages until autumn next year and once complete, Wunderlich Lane will be home to a collection of 25 restaurants and bars plus wellness and boutique retail. The EVE Hotel Sydney will open later in 2024, offering guests an immersive experience in the precinct’s art, culture, and culinary offerings.
The Surry Hills Village penthouse on Baptist is now finished and ready to move into with marketing through Toga Group and inquiries to 1800 554 556.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
