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Luxury homes sales soared globally in 2013– Report



Luxury homes sales volumes in key international property hotspots surged in 2013, while median sales prices remained relatively constant, according to a new report by Christie’s International Real Estate and Strutt & Parker.

According to Propertywire.com, the report focuses on three markets which are experiencing exceptional growth London, Miami and New York, and shows that the number of luxury properties sold, that is those priced over $1m, increased dramatically, surpassing 2012 levels.

Overall median sales prices leveled out, despite asking prices for some properties reaching historic highs and buyers were a combination of local residents, overseas investors and a growing number of young millionaires.

It points out that the increased demand from wealthy potential buyers looking to invest in real estate is fuelling this renewed housing boom. Overseas buyers had a significant presence in all three luxury markets.

In London, Strutt & Parker reported that 40 per cent of buyers were from overseas, mostly from Europe, Asia, Africa, the Middle East and Russia. In Miami, 35 per cent of luxury homes were purchased by South Americans, English, Russians and Canadians, while Chinese and Russian buyers represented 15 per cent of the New York market.

Wealthy younger buyers in their 20s and early 30s, known as Generation Y or millennials, are also having a surprising impact on high end property across the globe, with the recent surge in the tech sector promoting the wealth of a disproportionally large number of these buyers looking to invest.

Of the three markets examined, London achieved the highest average price per square foot, which rose to $2,053 in 2013, compared with $1,023 in New York and $612 in Miami.

The report concludes that London, Miami and New York are all business and lifestyle destinations which offer exactly what luxury buyers are looking for in terms of economic stability, accessibility and cultural attractions.

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