The combination of record government stimulus programs, quantitative easing and low-interest rates has created the perfect storm to send global property markets on an upwards trajectory.
Below are the top five markets that still generated remarkable results amidst the 21st century’s biggest health crisis.
Sydney’s home prices continued to soar, climbing 15 per cent in the financial year. This defied early pandemic warnings of steep falls with ultra-low interest rates and government stimulus as primary drivers. According to a recent report from the University of NSW, homeownership is now out of reach for most people under the age of 35 with a typical house in Sydney now being valued at $1.3 million whilst a typical apartment is about $750,000.
Michael Yardney, Director of Metropole Property Strategists also revealed that Sydney house sales grew the fastest of all the capital cities in Australia at 15.7% since Stage 4 lockdowns were eased last year, with supply far outweighing demand as one of the main reasons. Last March, Sydney home values soared at their fastest pace in 32 years.
2. Hong Kong
Properties in Hong Kong have surged to a 24-year high during the first half of 2021, led by the immense growth in its residential property market with investors as one of the main drivers.
Midland Realty’s data revealed that Hong Kong’s economic turnover reached HK$468.71 billion or equivalent to US$60.4 billion in just 6 months with secondary housing as the main financial contributor accounting for HK$280.06billion (60%) of the turnover. This implies a 74.2% leap despite the pandemic.
3. New York
New York is one of the leading and fastest-growing real estate markets worldwide. During the pandemic, Manhattan properties went down to 6,675 units only in 2021 July from 9,600 in 2020 October. This is due to the easing of border control restrictions and New Yorkers coming back to the city. Additionally, the rise of remote working drove the demand for luxury houses and condominiums with a private workspace amenity.
London house prices hit a staggering £497,948 average in May and remain the most expensive city to buy a house in the United Kingdom. Several real estate experts believe that more people will come back to the city with restrictions reduced and vaccination rollouts ongoing.
According to Savills, one of the world’s leading property advisors, house prices in London would grow by 21.6% in the next five years, which is above the UK as a whole at 21.1 %.
Shanghai takes the second spot in the list of ten cities that recorded the highest luxury real estate price growth in the world this 2021. It registered a 16% price increase along with Guangzhou.
In China’s major cities, new home prices grew from January to February by 4.3%. Despite the stricter curbs on China’s new home sales this January, the enthusiasm of the buyers continues to persist.