The Most Desirable Cities In A Post-Covid World

Singapore Property

The wealthy have been fleeing towns in droves for several months now. Now recent data reveals that rates for prime property have dropped alongside their flight in major cities around the world. But a small few saw rates increase.

Over the last 12 months, the valuation of the most affluent 5% of homes in some of the most coveted cities in the world has fallen. London, New York and Dublin are between them.

“The number of cities recording annual price reductions is increasing, from 23 percent at the end of 2019 to 38 percent in Q3 2020,” reports Knight Frank, a data-compiling real estate consultancy.

The highest decline in luxury property prices has been seen in Singapore, by 6.1 per cent over the 12 months to October. This is mainly due to travel controls, which have “slightly decreased the amount of international buyers in Singapore,” says Leonard Tay, head of research for Knight Frank Singapore.

A variety of cities have seen international investors plunge as expats head home. In the expectation that others will remain, Dubai, where there are less jobs for professional expats, has only eased some of its rules. In the area, luxurious homes have dropped by 3.7 percent. There are improvements to the legislation in Hong Kong that have forced them to flee. Prices have dropped 5.4 per cent there.

This decline in prime urban property values has left their shareholders worse off. In the first six months of this year, high net worth individuals (HNWIs) across the globe were 14 percent worse off, says Andrew Amoils, author of a recent study from New World Capital. The diminishing valuation of their holdings is primarily to blame, where all of their money is tied-up.

And this pattern is being bucked by several towns. Rocketing luxury real estate rates in some cities tells us that the affluent are preparing their lives post-Covid-19.

The highest growth in prime property values in any region in the world has been witnessed in Auckland. Prices increased by 12 percent over the 12 months to October as New Zealand clocked one of Covid-19’s lowest prices. New Zealand citizenship approvals have boomed over the same time as the global jet-set is planning to pay for residency in excess of NZ$3 million ($2 million).

“A major upsurge” of investors searching for assets in excess of NZ$20 million ($13.7 million) has been seen by Jane Person, managing director of Luxury Real Estate in Auckland.

We prefer to see foreign buyers who are drawn to the idyllic lifestyle of Auckland view value favorably toward major international cities and equally famous cities such as Sydney or Vancouver, “she says.”

Manila in the Philippines was placed second in Knight Frank’s rating, primarily due to the growing popularity of resort communities in Batangas, a more spacious and seaside province south of Manila. According to Leechiu Property Analysts, prices there rose between 20 percent and 46 percent in October from a year earlier.

Los Angeles, San Francisco and Miami are common in the United States, while in Europe, the Swiss cities of Zurich and Geneva are seeing prices grow higher than they already are.

Gone are the days of condo penthouses. Water, either the sea or the pool, now seems to be the focus for affluent home buyers who do not want to travel away from the area.

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