Five luxury property markets set to rise in 2017

Aug 21 , 2017

Smart investment: Shanghai, Sydney, Singapore, Monaco and Dubai will be top destinations for the super-rich

Hong Kong may have the most expensive luxury properties in the world, but it is not in the top five list of luxury property markets to invest in. This is according to international property consultant Knight Frank, which has listed Shanghai, Sydney, Singapore, Monaco and Dubai as the top destinations for luxury property investment for the super-rich.

Knight Frank’s Prime International Residential Index (PIRI) ranks luxury property prices in 100 cities worldwide.

According to PIRI last year, the value of urban luxury property increased on average by 2.4 per cent year-on-year, while beach or coastal property slipped marginally by 0.5 per cent. Average prices on the world’s prime residential market rose 1.4 per cent as compared to a 1.8 per cent growth in 2015.

Here are the reasons why these five cities are tops for luxury property investment this year.

1. Shanghai

Luxury property prices in Shanghai, the top commercial and most expensive city in China, areexpected to go up by almost 8 per cent this year. Last year, luxury property prices in the city soared by 27 per cent for investors. Last year some of the top-end developments were lapped up by buyers, and this year, too, agents expect high-end developments to be sold out as supply will be limited due to government restrictions on developers to curb runaway property prices.

A sales assistant speaks to a customer in front of a model of a residential complex, at a real estate exhibition in Shanghai. Photo: REUTERS

2. Sydney

This year the top Australian city’s value of luxury real estate is expected to increase by 5 per cent, according to various estimates. Last year, Sydney posted a 9.3 per cent price growth in high-end property and was ranked 11th in Knight Frank’s PIRI rating.

Last year a number of top commercial global cities slowed as far as luxury prices were concerned, but Sydney did not. The demand from Australians and overseas buyers, especially Chinese, would continue to fuel luxury property prices in the Australian city this year.