Property prices sizzling in vibey Miami
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If you are looking to invest in a prime property overseas, you may want to consider Miami in North America or Seoul in Asia.
These cities have recorded the highest prime property price increases over the past 12 months, so could hold lucrative returns for global investors.
In Miami, prices of such properties increased 26.4% from Q3 2020 to Q3 2021, reveals Knight Frank’s Prime Global Cities Index, a valuation-based index tracking the movement in prime residential prices across 45+ cities worldwide.
It is followed by the Asian cities of Seoul (22.6%) and Shanghai (20.5%), and North America’s Toronto (20.4%) and San Francisco (20.2%). On average, prime property prices across the 45 cities increased at an average rate of 9.5%.
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“With travel starting to normalise, the prospect of tighter monetary policy on the horizon, as well as higher taxes and cooling measures, evidence suggests prime markets had a busy third quarter,” the report states.
Other key findings include:
* 85% of cities saw prime prices increase in the year to Q3 2021
* 35% of cities saw prime prices rise by more than 10% over the 12 month period
Miami leads the index this quarter for the first time since the Index started in 2007, the report reveals, attributing this to the hunt for larger accommodation, coastal living, and Florida’s low taxes – key draw cards for remote workers in the US.
From Q2 2021 to Q3 2021, however, fifteen cities – including Toronto, and Guangzhou, Beijing, Shanghai, and Shenzhen in Asia – saw their annual rate of growth decline between Q2 and Q3 2021.
“The Evergrande crisis, a raft of cooling measures and localised outbreaks of Covid-19 explain the slowdown in luxury price growth in the Chinese mainland’s top tier cities, and whilst the mooted two-year nationwide ban on foreign residents in Canada won’t impact domestic buyers directly, it may be adding to jitters as homeowners reflect on the government’s overall direction of travel.”
With New Zealand one of the first key economies to hike interest rates, Knight Frank researchers say Auckland’s housing market is one that policymakers will be “watching closely”. Prior to the recent rate rise, prime prices in this city were rising at a rate of 9.8% per annum, and demand in the last 12 months was almost entirely domestic, due to travel rules and foreign buyer restrictions.
The report adds: “As more governments look to tighten monetary policy we expect the prime market to be better insulated given the sector’s large proportion of cash purchasers.”
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