Global Real Estate Assets Rose 5% In 2020
Kanebridge News
Share Button

Global Real Estate Assets Rose 5% In 2020

Residential appreciation fueled the overall growth.

By Liz Lucking
Thu, Sep 23, 2021 11:02amGrey Clock 2 min

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.

MOST POPULAR

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

Related Stories
Property
It’s Hamptons living, but not as you know it
By KANEBRIDGE NEWS 24/03/2023
Property
Home Renovations Were Always Tough. Now Many Are Giving Up Mid-Project.
By RACHEL WOLFE 24/03/2023
Property
Property market warms up across Australian capitals
By KANEBRIDGE NEWS 23/03/2023
It’s Hamptons living, but not as you know it

This home has all the conveniences of modern living set in a dramatic landscape

By KANEBRIDGE NEWS
Fri, Mar 24, 2023 2 min

Plenty of people are looking to get away from it all. But most are reluctant to give up the conveniences and small luxuries of modern living.

This split-level property at 166 Westwood Street, Bridport on the north coast of Tasmania offers both, with direct access to a stunning coastline as well as easy living in a three-bedroom, Hamptons-style home. Just a 10-minute walk from Mermaids Beach in the Granite Point dress circle, the house on a 1206sqm site is a two-hour drive from Devonport and the Spirit of Tasmania terminal port.

Central to the floorplan is a generous, north facing open plan living space with raked ceilings and wraparound bay windows leading onto a sun-filled deck via sliding doors.

Entry is via a spacious reception area with integrated hall table and storage cupboard. A short hallway offers access to the master suite to the right and secondary bedrooms to the left, or through to the open plan living area to the rear.

The master suite includes a built-in robe and stylish, semi open ensuite. Sliding doors lead onto the split level deck, with a spa on the lower side to provide privacy.

The well-appointed kitchen includes a large butler’s pantry, as well as an island bench and bar area with finishes such as Carrara marble chosen to blend seamlessly into the lounge and dining area. A stone fireplace is the main focal point in this room, while ducted heating and aircon ensure that thermal comfort is maintained all year round.

At 334sqm, the house is large enough to provide room for family and friends when required, bt cosy enough for two, without spending unnecessary time on maintenance and cleaning.

With Barnbougle Dunes and Lost Farm golf courses just 10 minutes away, local wineries and mountain biking at nearby Derby, this is an ideal property for downsizers looking for a little luxury while still feeling connected to nature. 

 

Address: 166 Westwood Street, Bridport

Inspection: By appointment

For sale: By Offer

Price guide: $2.3m t0 $3m

Agent: Andrew MacDonald, The Agency, 0409 368 151 andrewmacdonald@theagency.com.au

MOST POPULAR

Sydney’s prestige market is looking up, here’s three of the best on the market right now.

The market is forced to confront the impact of COVID lockdowns.

0
    Your Cart
    Your cart is emptyReturn to Shop