Price growth in the luxury housing market at global prime locations have remained largely resilient, a recent forecast by Knight Frank suggests.
In certain prime locations in Europe, the US, Singapore and Australia, prime sales are already back to pre-pandemic levels. In fact, 45% of surveyed cities noted that sales reached pre-pandemic levels in Q3 2020.
Here’s a snapshot of how the luxury housing market in these locations are expected to fare in 2021.
PRIME LOCATIONS ACROSS THE WORLD: LUXURY HOUSING MARKET
While Singapore and Sydney reported pre-pandemic sales for the luxury housing market, Auckland, Hong Kong, Melbourne, Mumbai and Shanghai are yet to attain the benchmark.
Picking up from where it left off pre-pandemic, Shanghai is expected to demonstrate the strongest rebound by the end of the year. Auckland is not too far behind at 4%. The bustling metropolises of Hong Kong and Mumbai are not likely to see any price shifts.
European locations Berlin, Geneva, Lisbon, London and Paris were all able to bounce back to pre-pandemic sales levels, some because of low interest, pent-up demand, tax holidays or stronger market fundamentals. On the other hand, Cape Town, Dubai, Madrid, Monaco and Vienna were still making their way to recovery.
The outlook for luxury housing in Dubai seemed less positive than others. Conversely, Cape Town is forecast to have the strongest growth by end of year, followed by London and Lisbon (which is seeing stronger investments in infrastructure).
Los Angeles, Miami, and Vancouver reported a rebound to pre-pandemic sales, while Buenos Aires and New York weren’t quite there yet. The forecast casts a shadow on Buenos Aires in particular (where growth was already weak), with luxury sales at the prime location expected to fall a further 8% by end of 2021.
While New York is not expected to reflect any price changes, Miami is set to change at a positive 4%.
Overall, prime location luxury home sales are mostly expected to either pick up or hold steady in 2021. While a supply drop will even out any net sales growth in Berlin, Buenos Aires and Hong Kong may have to brace for a drop in prime sales. For Dubai, which registered a negative price change, a surge in demand is expected to shore up the sector and drive sales upwards.
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