Hong Kong remains the world’s highest value residential location

Hong Kong maintain its position as the world’s most expensive residential address, according to exclusive research released today by CBRE.

Hong Kong maintain its position as the world’s most expensive residential address, according to exclusive research released today by CBRE.

In the third annual Global Living report, CBRE has compared the property markets across 29 key global cities. The results highlight that demand and growth remains highest in those cities that offer a safe harbour for wealth and a robust political and economic environment.

The top three most expensive places to buy a property are once again in Asia. Hong Kong remains the city with the highest value residential real estate, with the average property costing $1.157m ($1,616 per sqft). Singapore remains in second place, averaging £1.071m ($1,164 per sqft), and Shanghai in third at $880,251 ($667 per sqft). Amid concerns around affordability, all of these cities have introduced cooling measures to keep prices under control.

In line with a strong global economy, average house prices are growing in 22 out of 29 cities. The biggest year on year growth was experienced in double-digits by Beijing (30%), Shanghai (18%), New York (15.5%) and Toronto (14.3%).

London remains in the top five performing global cities, with the average property price per sqft at $617 and annual house price growth at just over 2%. The research reveals that living costs in London are amongst the highest of all 29 cities, with basic utilities calculated to cost an average of $166.93 (£137.32) per month.

CBRE’s Global Living also explores the cost of living. The report shows that the Middle East is the most expensive place to buy a cappuccino, with Doha, Abu Dhabi and Dubai all charging well above $4.50, whilst the average trip to the cinema in London costs $15.72 (£11.95) – the highest of all the cities considered. Asia remains the most expensive place to buy a gallon of milk, with Hong Kong charging an average of $2.99, followed by Shanghai and Singapore. Meanwhile, in Lisbon a gallon of milk costs on average just $0.74 (56p).

The research also highlights considerable rental growth in many European cities, including Dublin, Lisbon, Madrid and Barcelona. As these markets continue to recover from the post-2007 declines, coupled with increasing supply and demand constraints, these cities experienced double digit rental growth during 2017.

Jennet Siebrits, Head of Residential Research at CBRE, comments: “Urbanization of the world’s population continues at speed. The way our cities evolve reflects wider geo-political and economic environments which affect our cities in different ways. So, the homes we live in, invest it, purchase and rent and the motivations for doing so are being influenced by global change.

“With the global economy performing well, it was unsurprising to find that house prices in most cities (22 out of 29) are growing. Growth was strongest in Beijing and Shanghai, but Sydney, Melbourne, Toronto and New York also reported double digit house price growth year-on-year.

“Markets that showed particularly buoyant housing markets include Istanbul, where last year 232,428 property transactions were recorded – the highest of all our cities. This can be attributed to general economic development. Meanwhile, the rate of housing development in the last decade is highest throughout Asia, correlating with population growth.

“Europe continues to show an economy still recovering post-2007 recession. In cities such as Lisbon, Barcelona and Madrid, significant rental market growth coupled with high share of private renters, shows that renting remains a popular housing choice amongst residents in these cities.

“In the US, high living costs are balanced by the highest average salary rates of all our cities, whilst London is showing a stable economy underpinned by healthy GDP growth and a reduction in unemployment rates.”

CBRE’s Global Living: A City by City Review provides a snapshot on 29 global cities, showcasing the different influences in each city, whilst providing a comparative study of house prices, rental growth and living costs amongst other factors.