The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
8
print
Print
OtherTed TabetTue 11 Dec 18

These Cities Dominated Sales of More Than $25 Million in 2018

a898fb11-1ba2-4d60-aae5-e25c7ef7d75c

More than 150 homes around the world changed hands for US$25 million (AU$34m) each in the past year, with a combined value of $6.9 billion.

According to Knight Frank's inaugural ultra-prime property list, analysing sales of more than $25 million (AU$34m) around the world, city markets have dominated with ski resorts and second-home markets representing almost one third of the rankings.

Hong Kong leads the measure in the highest average value of transactions in the 12 months to August at $52.8 million (AU$73.1m), thanks in part to low property taxation and the absence of taxes on capital gains and inheritances.

Singapore averaged $44.1 million (AU$61.3m) while Sydney managed $43.8 million (AU$60.9m).

Transaction volumes grew by 13 per cent in the year to 2017 with first eight months of 2018 recording 116 transactions worth a combined $5.1 billion (AU$7.1m).

Related: Atlassian Co-Founder Buys $100 Million Fairwater Mansion



The highest number of ultra-prime sales over the year to August were in Hong Kong, where 47 homes priced at $25 million (AU$34m) or above changed hands. New York was in second place with 39 transactions.

London, which topped the rankings in 2015 with 72 ultra-prime properties totalling $2.9 billion (AU$4bn) changing hands, dropped to third place with 39 transactions.

In 2015, transaction volumes above $25 million (AU$34m) in London were almost double the number seen in any other location.

Yet, concerns over the Brexit referendum and higher stamp duty charges have stagnated the British market.

Combined transaction levels in New York, London, and Hong Kong, the report says, have increased by 12 per cent in the last two years, “with growth set to continue”.

Related: Billion-Dollar Property is the United States Largest Ever Residential Listing



Almost all of Sydney’s ultra-prime transactions over the past three years occurred in the Eastern Suburbs of Sydney and all were for houses.

While Sydney was one of the smallest city markets in regard to transaction levels, it had some of the most spacious properties with the typical transaction encompassing plots of land, and an average saleable area of 1,976 square metres.

“Sydney is now established as one of the world’s top ultra-prime city markets,” Knight Frank’s partner Erin van Tuil said.

“We have seen the reality of this in the market response to Crown Residences at One Barangaroo.”

“Crown Residences has now offered UHNWIs a viable alternative to the traditional, free-standing harbour-side home in Sydney.”

Second home markets represent almost a third of ultra-prime locations, with the US represented by Malibu and Palm Beach, with the Cote d’Azur and Monaco representing Europe and the Caribbean a firm favourite with high-end purchasers.

Related: Sydney's Property Markets: 2018 in Review

While Sydney is one of the smallest city markets in regard to transaction levels, it has some of the most spacious properties.


Earlier this year, Knight Frank’s highlighted that the global ultra-wealthy population (AU$69m in net assets or more), grew by 18 per cent in the five years up to 2017 and is forecast to increase a further 40 per cent between 2017 and 2022.

Knight Frank has tipped cities such as San Francisco, Chicago, Dallas, Beijing and Shanghai to potentially be future additions to the ultra-prime rankings due to increased transactions and rising purchase prices.

Second home and ski destinations such as Sardinia, Portofino and other resorts in the French Alps are also seeing more activity at this level, which is “expected to continue”.

Residentialdo not useMelbourneBrisbaneReal EstateSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
First projects named in a statewide plan to fast-track supply, including thousands of homes in a major growth region…
LATEST
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/these-cities-dominated-sales-of-more-than-us25-million-in-2018