When looking for a place to purchase a luxury home, it is always in your best interest to watch market trends. After all, while you may be willing to spend millions of dollars on a home, you also want to be sure the home you are buying is in a stable market where the value of the property is not likely to go down in the near future.
To that end, London-based real estate consultancy Knight Frank has released a list of the Prime Global Cities Index for 2015. Not surprisingly, this list of the top ten international markets for luxury price growth included two California cities. Here’s a closer look at the markets included on the list.
#10: Sydney, New South Wales, Australia
Sydney, Australia was at the bottom of the list of luxury real estate markets with a price increase of 7.4 percent in the past year. The combination of low supply and high demand has helped drive up prices in The Land Down Under.
#9: Los Angeles, California
Coming in at the number nine spot, Los Angeles saw a price increase of 8 percent. While home values are still about half of what they are in San Francisco, luxury home prices are on the rise. This is partially due to the number of all-cash sales, which has a weakening effect on housing supply.
#8: Dublin, Ireland
Technically tied for ninth place in terms of price increase, Dublin has also seen an 8 percent growth. With the continent still struggling with its economy, Europe as a whole saw a 0.2 percent price decline. Furthermore, Dublin only saw a 0.6 percent luxury market increase in the past three months.
#7: Tokyo, Japan
Despite seeing a 2 percent drop in luxury prices in the last three months, Tokyo has experienced an overall increase of 8.1 percent over the past year. For this reason, both foreign and domestic real estate investors see Tokyo as the land of opportunity where prices are likely to bounce back and yield great profits.
#6: Tel Aviv, Israel
Due to a combination of major demand, limited supply and a growing tech industry, Tel Aviv has experienced a 10.2 percent price increase over the past year. Luxury properties offering views of the Mediterranean are in particularly high demand.
#5: Jakarta, Indonesia
With its affluent residents, Jakarta was the number one country in terms of international luxury real estate in 2014 and 2013. Despite an 11.2 percent price increase in 2015, the city has slipped to the number five position.
#4: Vancouver, British Columbia, Canada
Vancouver just barely squeezed out Jakarta with a price increase of 11.8 percent. The strengthening US economy has helped give this city a lift thanks to demand for British Columbia’s natural resources. Low inventory is a concern, however, as it may lead to ongoing buyer fatigue.
#3: Miami, Florida
While Miami’s year-over-year price increase is just at 12.2 percent, prices have gone up by an impressive 22.4 percent in the last six months. This is a greater increase than any other city on the list. The growth is mostly attributable to foreign investors.
#2: Bengaluru, Karnataka, India
Bengaluru is attracting a great deal of tech talent, which is leading to significant industry growth. With the number of locals with wealth over $30 million expected to double in the next ten years, it’s not much of a surprise that the market saw a 13.6 percent price increase in the last year.
#1: San Francisco, California
Nearby San Francisco topped the list of luxury markets with an impressive 14.3 percent price increase over the past year. With a median home value of more than $1 million, San Francisco has the fastest-growing home prices in the world.
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(all data current as of 6/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.