Hong Kong – CBRE has released its Global Living Report: A City by City Guide, designed to explore 31 of the world’s most popular residential locations. The report highlights how Hong Kong continues to hold its position as the world’s most expensive residential location with an average of US$1,416 per sq. ft.
Following Hong Kong are London and New York with an average property price of US$1,025 per sq. ft. and US$842 per sq. ft., respectively. From across the region, Singapore and Tokyo made the top ten list of highest value locations in fifth and sixth place with US$810 and US$697, respectively.
Top 10 Highest Value Locations
|Top 10 Cities||
Average Property Price
(US$ per sq. ft.)
|1. Hong Kong||1,416|
|3. New York||842|
|7. Los Angeles||671|
Source: CBRE Research, September 2015
Dr. Henry Chin, Head of Research, CBRE Asia Pacific,comments, “while Hong Kong has cemented its place as the world’s most expensive location according to average price per sq. ft., we have seen the majority of cities across the region with a strong bounce-back in the residential sector following the global financial crisis. As the world’s population expands and the overall international economy continues to grow, we believe both factors underpin the fundamental demand for our region’s residential market. In Asia Pacific, residential property markets are becoming more integrated due to globalization and migration—people are now sharing culture and ways of living with new audiences.”
The Global Living Report provides a snapshot of 31 global cities, showcasing the differing influences in each city and providing a comparative study of house prices, rental growth and living costs, among other factors.
Below are the summaries of cities across the Asia Pacific region:
Hong Kong – This vertical city has the highest average property price across the sample, at US$792,480 (US$1,416 per sq. ft.). Despite the introduction of a special Stamp Duty and tightening of mortgage lending policies, prices have continued to increase, rising 13.5% in 2014 and 7.2% in the first five months of this year.
Singapore – A strong economy and the attractiveness of Singapore as a place to live has created a strong housing market, which until last year was increasing by an average of 8% per year over the past decade. Government interventions have affected current prices and Singapore is now expected to have a lower growth market than before. Prices remain high, with average property prices at US$889,200—the top end of the CBRE sample.
Tokyo – Tokyo is home to the largest metropolitan economy in the world and its urban area had a total GDP of US$1.9 trillion in 2012. The housing market was affected by the global financial crisis but rebounded in 2010. Under half of Tokyo’s population is owner-occupiers and whilst average prices are US$412,466, the relatively modest size of the properties translates to a fairly high US$697 per sq. ft.