Global Super-Luxury Sales Surged in the First Half of 2021
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Global Super-Luxury Sales Surged in the First Half of 2021

New York led with 202 sales above US$10 million, compared to 52 in the same period last year.

By Fang Block
Fri, Jul 30, 2021 11:31amGrey Clock 2 min

Super-luxury property markets globally have proven to be resilient amid the coronavirus pandemic and economic slowdown.

The number of super-prime home sales—defined as those priced above US$10 million—reached 785 in the first six months of 2021 across seven major cities, according to a Knight Frank report released Thursday. That is more than double the figure in the same period of 2020, and up 52% from the same time in 2019—a more comparable year.

Among the seven major cities analyzed, New York led with 202 sales above $10 million, which had an aggregate value of $785 billion, in the first half of the year. The number of sales was nearly four times the figure during the same time  2020, which was skewed by the impact of Covid-19. However, compared to the same period of 2019, this year’s sales were still up 36%, according to the report.

“Vaccine rollouts have aided the reopening of some of the world’s major cities—giving confidence to wealthy residents to commit to property moves in prime central locations,”  Liam Bailey, global head of research at Knight Frank, said in the report.

Los Angeles logged 171 sales at the very top $10 million-plus market in the first half of the year, nearly three times the number over the same period both in 2020 and in 2019, according to the report.

Of the other five cities included in the analysis—Singapore, Hong Kong, Sydney, London and Dubai—only Hong Kong-registered fewer super-prime sales between January and the end of June r than the same six-month stretch in 2019, but transactions were still 61% higher than the same period in 2020, according to the report.

While each of these super-prime markets has its unique driving force, such as recent price corrections, lifestyle advantages or the surge in new development. But they all shared some common themes, “namely, rapidly improving sentiment amid the reopening of cities and a unified shift in lifestyles as the wealthy seek out larger homes and more amenity rich locations,” Paddy Dring, global head of prime sales at Knight Frank, said in the report.

 

Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication:  July 29, 2021

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House values continued to fall last month, but the pace of decline has slowed, CoreLogic reports.

In signs that the RBA’s aggressive approach to monetary policy is making an impact, CoreLogic’s Home Value Index reveals national dwelling values fell -1.0 percent in November, marking the smallest monthly decline since June.

The drop represents a -7.0 percent decline – or about $53,400 –  since the peak value recorded in April 2022. Research director at CoreLogic, Tim Lawless, said the Sydney and Melbourne markets are leading the way, with the capital cities experiencing the most significant falls. But it’s not all bad news for homeowners.

“Three months ago, Sydney housing values were falling at the monthly rate of -2.3 percent,” he said. “That has now reduced by a full percentage point to a decline of -1.3 percent in November.  In July, Melbourne home values were down -1.5 percent over the month, with the monthly decline almost halving last month to -0.8%.”

The rate of decline has also slowed in the smaller capitals, he said.  

“Potentially we are seeing the initial uncertainty around buying in a higher interest rate environment wearing off, while persistently low advertised stock levels have likely contributed to this trend towards smaller value falls,” Mr Lawless said. “However, it’s fair to say housing risk remains skewed to the downside while interest rates are still rising and household balance sheets become more thinly stretched.” 

The RBA has raised the cash rate from 0.10 in April  to 2.85 in November. The board is due to meet again next week, with most experts still predicting a further increase in the cash rate of 25 basis points despite the fall in house values.

Mr Lawless said if interest rates continue to increase, there is potential for declines to ‘reaccelerate’.

“Next year will be a particular test of serviceability and housing market stability, as the record-low fixed rate terms secured in 2021 start to expire,” Mr Lawless said.

Statistics released by the Australian Bureau of Statistics this week also reveal a slowdown in the rate of inflation last month, as higher mortgage repayments and cost of living pressures bite into household budgets.

However, ABS data reveals ongoing labour shortages and high levels of construction continues to fuel higher prices for new housing, although the rate of price growth eased in September and October. 

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