Savills, a global real estate company in its annual report, the World Cities Review states, the activities of the world’s billionaires in the real estate market has been so intense over the past seven years. These activities have led to doubling the value of property in this sector as much as two-fold.
The report found, super luxury housing market in large cities known as “billionaire market” has been growing faster than the city’s main market. Increasing the greatest value has been recorded in China and Asia.
This happens due to the emergence of new classes of rich and rising commodity prices. Based on the list of “10 Cities with the Most Expensive Real Estate in the World” published Forbes, the city’s most expensive real estate in the world today is still held Hong Kong.
The average price of luxury homes in the city reached 7200 pounds per square foot, equivalent to USD 106.8 million per square foot. In fact, in 2012, and the price has risen nearly 11,000 pounds.
With the price per square foot that high, the average price of luxury homes in Hong Kong reached 57 million pounds, or approximately USD 845.7 billion. Record deal the most expensive sale ever held in the city held by Deep Water Bay Road. The agreement resulted in the agreement of 8200 pounds per square foot, or approximately USD 121.6 million square feet in 2011.
Meanwhile, the second position is held by Tokyo. The average home size in the Japanese capital has reached 16,000 square feet (or 1486 square meters). For every square foot, houses high-end in Tokyo had a price £ 5,000 per square foot, equivalent to Rp 74.1 million. In other words, a large house in Tokyo could reach Rp 1.1 trillion.
Trace the list Savills, London is currently in third place. House prices in high-end per square foot reached 3,500 pounds, or USD 51.9 million. The average house size 7900 square feet billionaire, meaning a price of Rp 408.9 billion.
In 2005, house prices in prime London market has surged by 107 percent, even in a global economic collapse. In general, a very dramatic price appreciation occurred in markets such as Singapore and Mumbai. In both places, the price jumped to 232 percent and 176 percent since 2005. Dramatic increase was due to both grow from the base value that tends to be low.
The city of New York ranks sixth with a price per square foot on average 2700 pounds, or USD 39.9 million. This figure is 47 percent higher than the mandated sales price during the bubble (bubble) housing in 2005.
Several factors led to the “rocking” the market in this billionaire. One of them is a government policy to target the very rich to buy a house. Hong Kong for example, have introduced restrictions on borrowing and higher liabilities to foreign buyers.
Meanwhile, according to Savills in Forbes, the high tax increases in France has limited activities that push high-end price. In Paris, the price fell as much as 8 percent. In fact, on the French Riviera reached 10 percent.
The article reported by Forbes also said that the investment motivation to change. Now, buyers with deeper pockets to buy property for back rent. In this way, they will provide income investments actively.
On the other hand, the same article is also interesting, because the Southeast Asian countries such as Malaysia, Indonesia, and the Philippines are now becoming known as a profile of foreign buyers. In this list, Paris was fourth, followed by Moscow, New York, Shanghai, Singapore, India, and Sidney.