Global Luxury Real Estate 2013

GLOBAL LUXURY REAL ESTATE AT A GLANCE
Christie’s International Real Estate is the world’s leading luxury residential network. Together with the collective knowledge
of its 139 affiliated brokerages in 45 countries, Christie’s International Real Estate is uniquely qualified to understand trends
shaping the prestige property market. Highlights from our annual white paper, Luxury Defined: An Insight Into the Luxury
Residential Property Market, are featured below. Download the full report at christiesrealestate.com/luxury-defined.

- Luxury property sales volumes exploded in 2013 as
the prestige real estate market flourished.

gest, although prized resort areas have begun to see effects of the
luxury residential market’s recovery.

- Three prominent buyer groups fueled the surge in sales: local buyers,
millennial buyers, and overseas buyers.
- Luxury real estate shows a strong correlation with the top end of the
fine art market as opposed to the general housing market.

- Changes to tax laws impacted some prime property markets in
2013, but in general these laws have had little impact outside of
Asia and France.

- Luxury home markets in urban centers have rebounded the stron-

WHAT PRICE DEFINES A LUXURY HOME AROUND THE WORLD?
London

Toronto
San Francisco

Paris
Côte d’Azur

New York
Dallas

Los Angeles

Miami

Hong Kong

$7m+

Singapore

$5m+
$4m+
$3m+
$2m+

Rio de Janeiro
Cape Town

Punta del Este

Sydney

$1m+

CHRISTIE’S REAL ESTATE INDEX: DEFINING THE STATE OF THE GLOBAL LUXURY PROPERTY MARKET
London

74

New York

66

Los Angeles

61

Hong Kong

61

San Francisco

57

Sydney

56

Paris

54

The Index gives a “luxury” ranking to the top 10
performing real estate markets reviewed in this
study. London topped the Index with the highest
scores for top sale price (US$101.5 million) and the
average luxury price per square foot (US$4,683).
Record sale price
Average price per square foot for US$1 million-plus homes
Number of sales over US$1 million
Annual growth in luxury market sales
Number of days on the market
Number of listings over US$1 million relative to population

Côte d’Azur

52

Miami

50

Percentage of international and non-local buyers
Percentage of secondary and additional homes
AT Kearney Global Cities Index and Emerging Markets Outlook

Toronto

47

Jones Lang LaSalle Transparency Ranking

Luxury Defined: An Insight into the Luxury Residential Property Market
is available from www.christiesrealestate.com/luxury-defined

GLOBAL LUXURY REAL ESTATE AT A GLANCE
Highlights from Luxury Defined: An Insight into the Luxury Residential Property Market 2014

GROWTH IN THE NUMBER OF US$1M+ PROPERTY SALES
Percent, 2012 over 2013
62

40
29

27

27

22

20
12
4

San
Francisco

Los
Angeles

Sydney

Miami

Côte
d’Azur

New York

London

Paris

Hong
Kong

Toronto

If 2012 was the luxury property
market’s top tier recovery, 2013
was the year when the rest of the
luxury market flourished, with
robust growth in the number
of US$1 million-plus sales.

-15

RECORD HOME SALE PRICES
US$, millions

121.2*

* Christie’s International Real Estate affiliate sale

2012

101.5
74.5
55.5

59*
45.4*

51.8
42

38*
22.9*

Hong
Kong

2013

88*

83.8

Los
Angeles

Paris

Sydney

48

53.9

47
35

30*

26.9*

17.1* 19.7*
Toronto

London

New York

San
Francisco

Miami

Côte
d’Azur

Los Angeles, Hong Kong, Paris,
and Sydney witnessed significant
spikes in record sales prices,
with top sales in the latter
three cities reportedly purchased
by international buyers.

MARKET DRIVERS: WHO IS FUELING THE GROWTH IN LUXURY SALES?

LOCAL ‘MOVE
UP’ BUYERS
- Pent-up demand, improving
economy, and stock market strength
fueling interest
- Low interest rates attracting ‘move
up’ buyers in lower- and mid-luxury
market tiers

MILLENNIAL
BUYERS
- Familial assistance boosted
purchasing power
- Attracted by low interest rates,
prices below market peak
- Affluent young tech executives
pushing up prices

£$
€¥

GLOBAL
BUYERS

- Trophy real estate in currencyfavorable locations is a “safe haven”
for wealth
- Global buyers fueling the top end of
the luxury home market
- Buying for their student children

Luxury Defined: An Insight into the Luxury Residential Property Market
is available from www.christiesrealestate.com/luxury-defined