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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