| It’s All Relative - SF Real Estate is Small Potatoes in a Global Real Estate Market | June 4th, 2008 |
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In San Francisco we have to settle for more modest digs in the million dollar price range– like a Mediterranean 3br/2ba house in the Mission or a big 5br/3ba home in the Outer Sunset. If we want to boost up our price range to $1.5M our options widen to include big Noe Valley views or a story book setting in Monterey Heights. We’re told again and again that we’re one of the most expensive housing markets in the country, but we’re small potatoes when you compare our prices in the global real estate market. According to Business Week, properties in the world’s most expensive neighborhoods are still commanding ferocious premiums. Some of the world’s most expensive cities are second home markets. Blame it on the new money — these newly minted millionaires from Russia, China, India, and the Gulf states don’t feel as pinch of current economic conditions and they love their sandy (or snowy!) playgrounds. With $1.5M as a budget Business Week explored what they might buy where in the world’s most expensive cities. Here’s what they came up with: 1. London A housing boom began in Central London in September, 2005, and continued through 2007, as wealthy buyers flowed in from around the world. The annualized growth for prime real estate is slowing this year and is expected to weaken further. But the super-luxury segment remains incredibly strong. Sales for £10 million-plus homes in Belgravia, Chelsea, Knightsbridge, and Mayfair increased by 190% in the six months ending January, 2008, compared with the same period a year earlier. * The annual price change compares the fourth quarter of 2007 with the fourth quarter of 2006. 2. Monaco It’s not just the casinos, beautiful people, and staggering views of the Mediterranean that have made Monaco a popular home for the world’s wealthiest buyers. The real appeal is that its residents don’t pay income tax. 3. St. Jean Cap Ferrat (France) St. Jean Cap Ferrat on the French Riviera continues to be popular with European aristocracy and the super-rich– such as billionaire Paul Allen, who enjoy the gorgeous beaches and warm weather. 4. Courchevel (France) Like to ski and shop? This resort town high in the Savoie region of the French Alps is favored by the Russian elite and is known for expensive hostelries such as the Hotel Le Lana, fashion boutiques, and wild parties. 5. Hong Kong Hong Kong’s real estate market has been driven by China’s strong economic growth. Despite limited space, real estate demand on the island has started to slow, and prices are softening as the effects of the U.S. credit squeeze spread. 6. Manhattan At the high end, Manhattan continues to boom even as the credit crunch deepens. In fact, in the first quarter of 2008 average prices were up 19% and the price per square foot was up 16%, according to the Corcoran Group. There are several reasons: First, the city has been shielded from the subprime crisis, largely because its co-ops and condos are well out of reach of most buyers with poor credit and shaky finances. Second, it remains a popular destination for movers and shakers in the financial, entertainment, and media world. Last, because of the weak dollar it is more affordable than ever for wealthy foreigners looking for a Manhattan pied-à-terre. 7. Cortina d’Ampezzo (Italy) The Northern Italian resort town is a popular second-home destination for ski buffs and Milan’s business elite. Prices for prime European vacation homes have benefited from the growth of the world’s population of high-net-worth individuals. 8. Portofino (Italy) Although there’s no beach, the harbor of this resort village on the Italian Riviera is packed with yachts owned by the world’s rich and famous. The village is about 20 miles from the Genoa airport. 9. Singapore The city’s high-end real estate has benefited from an influx of foreign buyers –and has been particularly strong close to the Orchard Road shopping area and on the island resort of Sentosa. 10. Tokyo Despite traditionally astronomical prices and cramped living conditions for all but the very wealthiest, Tokyo’s market is beginning to slow — the result of the credit crunch and a heavy supply of new condos that have recently come on the market. Leave a Reply |
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Remember when we were little and the term “Million Dollar House” made us think of fancy mansions in Beverly Hills? Today, America’s million dollar mansions are more likely to be in a flat red states with a long cold winters.