Where are the Ultra-Rich Buying Luxury Homes?

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Luxury Homes in Austin ; Where do the Ultra Rich buy Luxury Homes?

Where are the Ultra-Rich Buying Luxury Homes? Check out the List of top 10

Ranking the worlds most high-demand cities for luxury property with some beautiful info graphics.

Chart: Where are the Ultra-Rich Buying Luxury Homes?

Austin Ranking #4 out of #10 on Hottest Luxury Property Markets!

What does that mean for the average home shopper?

While most home shoppers in Austin won’t experience any direct changes in the home market this next year due to an influx of luxury property purchases this potentially could lead to more growth for Austin’s real estate market looking forward into 2018. Take note the info graphic makes mention that 60% of the cities mentioned are on the Pacific Rim.

 

Where are the Ultra-Rich Buying Luxury Homes?

RANKING THE WORLD’S BEST CITIES FOR LUXURY

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Whether it’s a baller mansion in Sydney, or that classy penthouse in Austin with a lake view, the buyers of top-end real estate tend to be very particular.

Luxury real estate can be insular and concentrated in only a few world-class cities such as Hong Kong, London, or New York, or in luxury destinations like Cannes or The Hamptons. These are all timeless locations that have the pigeonholed the concept of luxury and activities to appeal to large amounts of high net worth individuals.

But at the same time is a tradition concept of luxury can also be less sought for those seeking variety or change. Only so many homes change hands every year, and they do so based on global macroeconomic trends, the political environment, changing tastes, speculation, and shifts at a local level.  Hence this means luxury listings stay on the market an exceptionally long time when compared to a more modest home going for $300,000 dollars or less.

In the luxury home market, one year’s boom is another year’s bust – it just depends on who is buying and selling, so what does that mean looking into 2018.

PRICE DISPARITY FOR LUXURY HOMES

As with all real estate, pricing is not uniform across the board. The value of something is only what someone will pay for it.

In the city-state of Monaco, it costs $5,230 per square foot for top-end real estate. Interestingly, the same space can be bought for a fraction of the cost for only $1,297 in Los Angeles or $951 in Hawaii (Kauai).

 

 

Luxury real estate by square foot

This is yet another factor to consider in where the rich are buying.

 

TIMELESS VS. HOT MARKETS

In a 2017 whitepaper from CIRE markets are ranked based on the Luxury Index and the Luxury Thermometer.

The former rates timeless markets, like New York and Hong Kong, which tend to have the most luxury sales overall. The latter does so based on what’s considered emerging or trending upwards in a given year. These may not necessarily be the biggest markets, but they are ones that are getting an influx of new buyers and activity.

The Luxury Index

2016 Rank City +/- from prev. year
#1 Hong Kong +1
#2 London -1
#3 New York
#4 Los Angeles
#5 Singapore
#6 Sydney
#7 San Francisco +1
#8 Paris +1
#9 Toronto +1
#10 Miami -3

In the aftermath of Brexit, Christie’s noted that sales in London of $1 million+ primary homes declined by -35% in 2016. It’s no surprise then, that Hong Kong has displaced London as the top city for prime real estate sales according to the index.

The Luxury Thermometer

2016 Rank City +/- from prev. year
#1 Toronto +1
#2 Victoria (Canada) +1
#3 San Francisco +1
#4 Austin New
#5 Charleston (S.C.) New
#6 Auckland -5
#7 Paris New
#8 Portland
#9 Sydney -3
#10 San Diego New

The top two listings go to the Canadian market with an increasing influx of luxury sales by 83%.

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