Hong Kong property prices are streets ahead of other world cities, according to a new survey.
Average capital growth in homes has soared 15.2% in the past year – which is more than four times the figure for Singapore, the other Asian property powerhouse.
Only New York has shown anywhere near the same growth – at 12.2%, according to research by international property specialists Savills.
Billionaire boom
Each city was assessed for office and home rental costs and changing values in home prices.
The full top 10 is:
| Rank | City |
Office Rental Growth |
Home Rental Growth |
Home Capital Growth |
| 1 | Hong Kong |
-3.7% |
3.0% |
15.2% |
| 2 | New York |
9.0% |
4.6% |
12.2% |
| 3 | London |
6.5% |
5.7% |
2.7% |
| 4 | Paris |
5.0% |
0.0% |
-3.4% |
| 5 | Tokyo |
7.0% |
2.0% |
-0.7% |
| 6 | Moscow |
13.9% |
8.8% |
9.0% |
| 7 | Singapore |
-8.5% |
9.1% |
3.5% |
| 8 | Sydney |
2.8% |
4.2% |
4.2% |
| 9 | Shanghai |
4.3% |
4.0% |
-0.5% |
| 10 | Mumbai |
-9.7% |
18.9% |
0.7% |
Source: Savills World Cities Review
Home rental costs in Asian cities, like Singapore and Mumbai, are going up due to a shortage of new housing for growing populations.
Hong Kong property prices are increasing due to a lack of space to build new homes.
Savills also cites the growing number of billionaires in the Asian region seeking property investments as a major reason for property price rises.
The firm says new wealth in China and Asia is pushing up prime property values worldwide.
Emerging stars
The report reveals a real shift in personal wealth away from North America and Europe to the Asia Pacific.
While governments in the first world concentrated on managing austerity budgets and the rich lost rather than gained wealth, the picture is the opposite in emerging economies.
There, a nouveaux riches with money to spend has sprung up. Many are buying homes in Europe and North America as investments and a display of their new found wealth.
Savills also reports cities in emerging economies are outperforming developed nations – except for the most expensive property in London. France’s poor performance in the survey is attributed to a stuttering economy and threatened tax curbs against the wealthy and property owners.
The highest property price was achieved in London, where a home in prestigious Kensington Palace Gardens changed hands at an average price of £8,500 per square foot.
Luxury homes in Hong Kong (£8,200 per square foot) and New York (£8,100 per square foot) were the next best performers.
