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.
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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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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
Capital cities lead the way as median home values see clear upswing
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Home values continue their upwards trajectory, recording the strongest monthly growth in 18 months, CoreLogic data shows.
The property data provider reports that their Home Value Index has noted a third consecutive rise in values in May, accelerating 1.2 percent over the past month. This is on the back of a 0.6 percent increase in March and 0.5 percent rise in April.
Sydney recorded the strongest results, up 1.8 percent, the highest recorded in the city since September 2021. The fall in Sydney’s home values bottomed in January but have since accelerated sharply by 4.8 percent, adding $48,390 to the median dwelling value.
Melbourne recorded more modest gains, with home values increasing by 0.9 percent, bringing the total rise this quarter to 1.6 percent. It was the smaller capitals of Brisbane (up 1.4 percent) and Perth (up 1.3 percent) that reported stronger gains.
CoreLogic research director Tim Lawless said the lack of housing stock was an obvious influence on the growing values.
“Advertised listings trended lower through May with roughly 1,800 fewer capital city homes advertised for sale relative to the end of April. Inventory levels are -15.3 percent lower than they were at the same time last year and -24.4 percent below the previous five-year average for this time of year,” he said.
“With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market.
“Amid increased competition, auction clearance rates have trended higher, holding at 70 percent or above over the past three weeks. For private treaty sales, homes are selling faster and with less vendor discounting.”
Vendor discounting has been a feature in some parts of the country, particularly prestige regional areas that saw rapid price rises during the pandemic – and subsequent falls as people returned to the workplace in major centres.
The CoreLogic Home Value Index reports while prices appear to have found the floor in regional areas, the pace of recovery has been slower.
“Although regional home values are trending higher, the rate of gain hasn’t kept pace with the capitals. Over the past three months, growth in the combined capitals index was more than triple the pace of growth seen across the combined regionals at 2.8% and 0.8% respectively,” Mr Lawless said.
“Although advertised housing supply remains tight across regional Australia, demand from net overseas migration is less substantial. ABS data points to around 15% of Australia’s net overseas migration being centred in the regions each year. Additionally, a slowdown in internal migration rates across the regions has helped to ease the demand side pressures on housing.”
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
