The characteristics, type and quality of a city’s residential stock are a key component of its global competitiveness.
A small number of world cities can count themselves among a truly global market, sought by the world’s richest households and behaving almost like a separate asset class to a worldwide investor audience.
Savills, has piloted a new Global Cities survey that examines four of these key cities. It very clearly demonstrates that leading cities in ‘new world’ emerging markets have significantly outperformed the more established prime residential markets in ‘old world’ economies over the last five years – but at the expense of greater volatility.
Savills survey is unique in comparing residential property prices, not on the basis of equivalent properties in each city (which are sometimes impossible to find) but on the basis of equivalent households. Their total value and rent measures are based on a group of people who might typically relocate or be employed in any one of the cities studied.
On this basis, Hong Kong was found to be 55 per cent more expensive, and New York 15 per cent cheaper than London on current sterling values. The analysis also reveals that these so-called global cities all significantly outperform the broader market of their countries and act as a real funnel for wealth, particularly internationally-generated wealth.
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For further information please contact:
Yolande Barnes, Head of Residential Research, +44 (0) 207 409 8899
Sue Laming, Savills press office, +44 (0) 207 016 3802 / +44 (0) 7946 635866