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This is the world’s hottest luxury home market. Hint: It’s not London, NY, Dubai

May 2016

By Sunil Kumar Singh

May 17, 2016 | 10:55 | Dubai

Auckland has supplanted Toronto as the world’s “hottest” luxury housing markets. The top five include Auckland, Toronto, Victoria, Valencia and San Francisco, respectively (based on increase in number of luxury home sales, absorption in the luxury market and decrease in average days on market), according to Christie’s International Real Estate’s 2016 ‘Luxury Defined’ Report that examines 100 luxury real estate markets. The average starting price for a luxury property worldwide is $2.2 million. Auckland posted an incredible 63% growth in million-dollar-plus sales thanks to strong international and local demand. Last year’s top-ranking market, Toronto, continues to thrive and saw an extraordinary 48% growth in year-on-year luxury home sales as well as a shrinking number of days on the market, the report said.

For the fourth year in a row, however, London commands the top position as the world’s most luxurious property market. The top five is rounded off by Hong Kong, New York, Los Angeles, and Singapore. Singapore knocked Dubai — where pressures from declining oil prices and an oversupply of luxury properties caused price and sales volume declines — out of the world’s top 10 luxury markets, according to the report.

Hong Kong narrowly edged out New York to place second in the Luxury Index. The harbor city posted the world’s top residential sale in 2015 ($194 million / HK$1.5 billion).

more than ever, the health of local luxury real estate markets vary across the globe. Sales volumes for prime property in markets such as New York, Hong Kong, and London plateaued in late 2015 and into 2016, while emerging luxury markets continued their steady evolution, the report said.

And numerous ‘comeback’ markets like Dublin and Detroit are enjoying a new era of growth after years of declines. This can be attributed to a range of key contributors, from shifting financial concerns and the impact of currency flows, to the changing preferences of high-value property buyers, Christie’s report added.

17-05-2016-Chart

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