Chinese property buyers have the potential to create top-end housing
market momentum in key cities across the world, including Sydney,
according to international real estate group Savills.
But not until Chinese currency and offshore investment rules are relaxed, says Savills global research director Yolande Barnes.
“Emerging markets, and Chinese buyers in particular, still have the potential to move other world city markets,” the report, Savills World Cities Review Index, suggests.
“The unleashing of high-net worth Chinese investor monies could boost London’s prime markets by 15% and the same must be true of other top cities, but this will require the relaxation of currency export controls and overseas ownership restrictions.”
Sydney ranked among the international cities showing positive prestige price growth, although Hong Kong led the Savills World Cities Index for the first half of 2012 with a price rise of just over 7%.
Sydney was up 3.7% in a period when the residential markets of the world’s leading cities had become more localised.
"The strongest price growth has been seen in those world cities that were buoyed by domestic demand, while international investor cash has retreated to a few core markets with established, long-term investment credentials," the report says.
Paris was the worst global city in the Savills index, with prices falling because of the ongoing eurozone crisis and proposed increases to taxes on high-end property and investor gains that followed the election of President François Hollande, who's set to impose taxes on the rich.
"Paris is the biggest loser of 2012 and faces a period of uncertainty," the report notes, adding further price falls now seem unavoidable in the French capital. London is the potential beneficiary as international money seeks an alternative haven within the geography of Europe, but outside the eurozone.
London remains the second most expensive world-class market, but it too faces uncertainty regarding the impact of new stamp duty rules, announced in the March budget, which has already slowed activity and price growth at the top of the market.
"A period of flat prices now seems likely, though market fundamentals (high occupier demand and limited supply) favour growth longer term," the report notes.
Barnes says that New York is poised for a strong recovery with steady price growth, low mortgage rates, short supply and growing offshore demand.
But not until Chinese currency and offshore investment rules are relaxed, says Savills global research director Yolande Barnes.
“Emerging markets, and Chinese buyers in particular, still have the potential to move other world city markets,” the report, Savills World Cities Review Index, suggests.
“The unleashing of high-net worth Chinese investor monies could boost London’s prime markets by 15% and the same must be true of other top cities, but this will require the relaxation of currency export controls and overseas ownership restrictions.”
Sydney ranked among the international cities showing positive prestige price growth, although Hong Kong led the Savills World Cities Index for the first half of 2012 with a price rise of just over 7%.
CITY
|
Capital growth Jan-June 2012
|
Capital growth
June-Dec 2011
|
Capital growth since June 2005
|
Rank by capital value
| |
June 2012
|
June 2005
| ||||
Hong Kong
|
7.4%
|
-3.4%
|
105.9%
|
1
|
1
|
Moscow
|
5.5%
|
4.1%
|
113.5%
|
8
|
8
|
Sydney
|
3.7%
|
-2.0%
|
31.7%
|
9
|
6
|
London
|
2.8%
|
1.0%
|
34.7%
|
2
|
2
|
Singapore
|
1.5%
|
3.6%
|
110.3%
|
4
|
7
|
New York
|
1.1%
|
2.0%
|
10.5%
|
7
|
3
|
Tokyo
|
-0.3%
|
-0.2%
|
42.9%
|
3
|
5
|
Mumbai
|
-1.7%
|
0.0%
|
149.7%
|
10
|
10
|
Shanghai
|
-2.6%
|
0.1%
|
137.3%
|
6
|
9
|
Paris
|
-3.4%
|
4.4%
|
47.6%
|
5
|
4
|
Sydney was up 3.7% in a period when the residential markets of the world’s leading cities had become more localised.
"The strongest price growth has been seen in those world cities that were buoyed by domestic demand, while international investor cash has retreated to a few core markets with established, long-term investment credentials," the report says.
Paris was the worst global city in the Savills index, with prices falling because of the ongoing eurozone crisis and proposed increases to taxes on high-end property and investor gains that followed the election of President François Hollande, who's set to impose taxes on the rich.
"Paris is the biggest loser of 2012 and faces a period of uncertainty," the report notes, adding further price falls now seem unavoidable in the French capital. London is the potential beneficiary as international money seeks an alternative haven within the geography of Europe, but outside the eurozone.
London remains the second most expensive world-class market, but it too faces uncertainty regarding the impact of new stamp duty rules, announced in the March budget, which has already slowed activity and price growth at the top of the market.
"A period of flat prices now seems likely, though market fundamentals (high occupier demand and limited supply) favour growth longer term," the report notes.
Barnes says that New York is poised for a strong recovery with steady price growth, low mortgage rates, short supply and growing offshore demand.
An extract from PropertyObserver:-"Hunters Hill mainland Chinese prestige property purchase signals emerging international trend", By
Jonathan Chancellor
Tuesday, 11 September 2012
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