Top Global Destinations Lead Resurgence in Luxury Residential Property
Market, Reports Christie’s International Real Estate
Report debuts first ever Index to rank the world’s most important cities for
luxury residential real estate, with London topping the list
NEW YORK -- March 4, 2013
Limited inventory, strong international buyer demand, and high-net-worth
individual’s (HNWI) increased appreciation for world-class lifestyle offerings
have pushed prices for luxury homes toward historic highs, reports Christie’s
International Real Estate in a new study on the global prestige residential
Entitled Luxury Defined: An Insight into the Luxury Residential Property
Market, the report compares 10 of the world’s top property markets—London, New
York, Hong Kong, Paris, San Francisco, Cote d’Azur, Toronto, Dallas, Los
Angeles, and Miami—and debuts the ‘Christie’s International Real Estate
Index,’ the first ever true global indicator for luxury residential real
estate. The Index ranks markets across key metrics including record sales
price, prices per square foot, percentage of non-local and international
purchasers, and the number of luxury listings relative to population.
Highlights of the research include:
*Globally, top-tier property sales achieved record prices in several
cities, remaining immune to many of the economic concerns that drive the
general housing market.
*HNWIs are often more inclined to invest in an important global market than
in another city within their home country for second or additional homes.
*Prestige residential real estate values will more likely follow growth
trends of non-consumable luxury goods such as fine art more so than the
growth trends of the general housing market.
*Cash transactions have dominated luxury property acquisitions across many
*Recent tax law changes in many of these markets are expected to negatively
impact 2013 market activity.
“With financial markets providing a limited return on investment,
high-net-worth individuals are recognizing the intrinsic value of investing in
non-consumable assets such as prestige real estate and fine art,” says Bonnie
Stone Sellers, Chief Executive Officer of Christie’s International Real
Estate, the world’s leading luxury real estate network and a subsidiary of
Christie’s auction house. “Strong momentum in the luxury property market is
also being driven by scarcity of quality inventory and demand from
international buyers in many of the world’s top destinations.”
London’s $121 million (£75 million) sale and New York’s $88 million sale
pushed both cities to the top of this year’s Index with the highest record
home sale prices. A prized second home destination, Côte d’Azur recorded the
highest percentage of both secondary home buyers (95 percent), and
international and non-local buyers (90 percent). Toronto’s real estate market,
which has remained buoyant in recent years of global turmoil, recorded the
lowest amount of days on the market for luxury listings (46 days).
While the report focuses on 10 indexed markets, it also provides insight into
other luxury residential areas around the globe with a population of less than
150,000, such as St. Bart's, French West Indies; Salzburg, Austria; Aspen,
Colorado; and Jupiter Island, Florida.
As the only global real estate network owned by a fine art auction house,
Christie’s International Real Estate has unparalleled access to the HNWIs
around the globe who procure assets such as art, wine, jewelry, and luxury
real estate. Together with its 125 affiliated brokerages in 41 countries – all
individually selected to join its network for proven records of client service
and success in luxury residential sales – Christie’s International Real Estate
is uniquely qualified to understand the characteristics and trends associated
with the prestige real estate market.
The study can be accessed as a whole at
About Christie’s International Real Estate
Christie’s International Real Estate is an invitation-only affiliate network
composed of the world’s most proven and qualified real estate specialists in
the luxury residential sector. The company has offices in London, New York,
Hong Kong, Beverly Hills, Chicago, and Palm Beach, and approximately 125
global affiliates with 25,000 real estate professionals in 41 countries. For
additional information about Christie’s International Real Estate, please
Israel Kreps, +1-305-663-3543
Christie’s International Real Estate
Antonia Koumantaropoulou, +44 (0)20 7389 2855
Monique Sofo, +1-212-974-4593
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