Super luxury properties in London enjoys a super demand

 Apartment in London Luxury prestigious index W9 £1300000

The value of residential real estate is more expensive than £ 10 million on top of the market London, new York, Hong Kong and Singapore will grow by 27% in the next five years, according to a report published today by Candy & Candy.

The study, which was produced by Candy & Candy, Savills and DeutscheBank is devoted to the study of present and future market for Super luxury properties in these four cities, which are believed to be at the forefront of global private capital flows.

The study also sheds light on the forecasting of the state of the Ultra High Net worth (UHNWI) and, as a result, fuel demand for Ultra luxury housing in these four cities.

The market for Ultra luxury homes in London, new York, Hong Kong and Singapore together have witnessed more than 300 residential real estate transactions in 2012 where the price was more than £ 10 million, according to the latest international real estate company Savills. The total value of those transactions exceeded £ 6.6 billion According to the forecast, the number of transactions will grow to 400 by the year 2017 and the total value of deals will reach 8.4 billion

Report routinely comes that the world’s wealth, according to forecasts, will increase by more than 4.4 % to 5% per year from approximately $ 122 trillion to $ 150 trillion. by 2017, according to BostonConsultingGroup. A significant concentration of wealth has already begun and the number of billionaires grew last year by 10% and their wealth grew by 14% .

Most of this state is generated in emerging markets, such as Africa, Central Asia, China and South Korea. The Asian market has become a source of growth in the fortunes of 11% a year In Russia, Eastern Europe and Latin America – 9% per year.

North America accounts for more than third of market of Ultra Luxury homes, a large proportion of which is new York. As noted in the report, residential real estate in new York is attractive because of the substantial fall in prices since the 2008 crisis.

From the point of view of transactions is more expensive than £ 10 million London is more expansive market than new York. Over 70% of transactions in London are to foreign buyers, many of them acquire property in pursuit of two goals – London – convenient for life and for business.

The report also stated that the rapid growth in excess of the wealth in Asia was unprecedented, which influenced the growth of prices in the elite residential markets of Hong Kong and Singapore where there has been a increase in property prices by more than 150% in every city of Asia. The growth of the state of the Ultra High Net worth (UHNWI) is expected to grow in the markets of Hong Kong and Singapore at 50% more than in North America over the next five years.

Recent changes in the taxation of international private real estate owners, in particular, the introduction of the state duty in Singapore and Hong Kong have made these locations expensive jurisdictions in terms of investment. Singapore and Hong Kong are now on a par with new York for the cost of the tax costs. Only in London changes in taxation hardly noticeable. The UK capital remains one of the cheapest of the four cities, from the point of view of costs that have to borne by the owners of luxury property.

Currently, the tax changes do not have a strong influence on the intentions of the elites to pour their capital into real estate markets, however, there is concern that additional measures to increase taxes, which are negotiated by governments of the jurisdictions of real estate, can deter potential investors.

The likelihood that rising prices for Super luxury real estate after a small adjustment will resume pretty big. To count on reduction of prices on the market Super luxury property in the long term is not necessary, since this property in terms of the appetite for real assets as the ever popular and desirable.

® Alice Morgan 02.05.2013