According to Wealth X, a wealth intelligence firm, the number of people considered to be ‘High Net Worth’, those with assets more than $30 million, is predicted to increase by 95,000 over the next ten years. With this being said, it is to be expected that more and more people will want and will be able to afford luxury homes and real estate properties each year.
While the demand for such properties is continuously on the rise, the availability of great locations remains unchanged. As an overall result of the capital income inflows being concentrated on only a few locations, the prices of luxury properties are pushed upwards. This brings us to the list of the 10 most expensive housing markets in the world.
10 Shanghai, China
In 2012, Shanghai experienced a significant growth in its housing market, with prices going up by 10.8%. However, financial experts are becoming worried of overheating, with the cost of a Shanghai home already being 45 times the annual salary of an average resident.
These concerns led to the Chinese government’s March 4 announcement that cooling measures will be implemented. These include a much stricter enforcement of a 20% capital gains tax on profits made from home sales. Now, properties are being sold with a price of per square foot ranging from $1,820 to $2,020.
9 Sydney, Australia
Despite Sydney having flat property prices back in 2012, its residential market is still considered to be one of the most resilient in the whole of Australia. Additionally, the country is also said to enjoy strength in its economic future, a strategic position in the Asia-Pacific region, and advantages in terms of lifestyle.
The Sydney government has also taken measures in order to get the attention of foreign investors. An example of this is the ‘Significant Investor Visa’, which is aimed towards the Chinese. This visa grants permanent resident citizenship or status to those who will place $5 million (in Australian dollars) in endorsed investments. The cost of a square foot of property in Sydney ranges from $2,020 to $2,230.
8 New York, U.S.A.
In New York, the price of a square foot of property can go anywhere from $2,030 to $2,240. Fortunately, New York is still considered to be a safe haven for property investors.
Russians are quickly becoming a growing force in the housing market of New York, where they are facing competition from Hong Kong and Chinese property buyers.
7 Moscow, Russia
Moscow is the financial center of Eastern Europe, so it should not come as a surprise that the city is able to attract property buyers from all over the country as well as from the former Soviet Union. Many rich Russians like to have their own apartment (or live in one) located in the capital.
Moscow’s average property price per square foot ranges from $2,040 to $2,260. Also, a great percentage of high-end homes in the city can be found in the neighborhood of Golden Mile. It is located between Ostozhenka Street and the Moscow River.
In 2012, the Singaporean government had to announce and implement cooling measures – its seventh since the year 2009. The measures included new rules such as minimum down payments and higher property purchase taxes. This resulted in property firms suffering from a fall in their shares prices.
However, it is expected that the prices of property in Singapore, which goes anywhere from $2,340 to $2,580 per square foot, will not go down anytime soon. This is mainly due to significant immigration, limited land, and dense population of millionaires.
5 Paris, France
Financial and real estate experts believe that the city of Paris has the highest potential of being able to compete with London in terms of attracting overseas property investors. However, with the Eurozone crisis taking place in 2012 and the proposals of President Francois Hollande, a significant number of buyers had to reconsider, with some owners even leaving the country. Nowadays, properties in Paris are being sold for a price of $2,350 to $2,600 per square foot.
4 Geneva, Switzerland
In 2012, the housing market in Geneva, Switzerland was dealt with a significant blow, prompting the prices of prime properties to fall by 6 percent. However, it is predicted that the cost of new Geneva homes will increase again, thanks to the various stringent planning regulations that are to be implemented. As of the moment, the price of a square foot of property in this city costs anywhere around $2,720 to $3,010.
3 London, United Kingdom
London is still highly regarded as one of the safest havens for property markets in the world. Despite the fact that many European buyers were replaced by Middle Easterns, Asians, Africans, and Russians, the housing market of this leading global city is still seen to boom in the coming years. For those who are interested in purchasing a piece of property in London, be prepared as the price of a square foot costs around $3,890 to $4,300.
2 Hong Kong
As of today, the property market of Hong Kong is facing severe overheating problems that its government is fighting hard to stabilize. Despite the implementation of new restrictions, the property price increased rate in 2012 doubled by up to 8.7%, from only 4.6% back in 2011. The price of a house in Hong Kong is so expensive that $1 million will only buy you 19 square meters, with the cost of properties per square foot ranging from $4,570 to $5,050. Fortunately, the cooling measures being enforced by the government are said to positively influence property prices in 2013.
With only 36,000 residents, Monaco is famous for being the home of the Formula One Grand Prix, its yacht-filled marinas, and for its numerous casinos. However, there is one more thing about this city-state. It has long been known as a haven and a playground of the super wealthy.
With this being said, you should no longer be surprised to find that spending $1 million on buying a home will only get you 16 square meters, especially if you choose a prime location, such as Central Monaco. The price per square foot in the city-state can go anywhere from $5,350 to $5,920.