Chesterton Humberts Prime International Residential Review: Q2 2010

• The Pacific leads the property market recovery

• Slower rate of recovery for Europe and US markets in the face of testing economic conditions

• Rebound in millionaire population – high net worth individuals (HNWI) numbers are rising fastest in the Far East with Singapore, Malaysia and China all recording growth of 35%, 33% and 31% respectively

• Monaco remains the most expensive area for resale property at €45,000 per sq/m with St Jean Cap Ferrat coming second at €32,500 per sq/m and London coming third at €22,500 per sq/m

• Hong Kong, New York and London topping the new home sale prices per sq/m at €19,500, €16,750 and €16,500 respectively

A lakeside residence at Geneva, Switzerland

Andrew Hawkins, Chesterton Humberts Head of International, comments: “Disparities in the performance of global residential markets remain apparent in the post-recession era.  The star performers are in the Asia Pacific region while recovery in Europe and North America is more laboured with transaction volumes remaining well below pre-recession levels.

“Outside the Asia Pacific region, it is the prime segments which have in most cases recovered first.  This reflects the combination of a smaller supply of available properties and the greater purchasing power of HNWIs, who are seeking desirable properties still selling at a discount to pre-recession levels.

“Appetite for prime residential property both for lifestyle and investment reasons remains firm although buyers are generally taking longer to commit to purchase decisions than in the pre-recession market.  Statistics from Primelocation confirm a healthy increase in buyer interest for high-end properties: searches for international property on their website rose by 109% between May 2009 and May 2010.

“Prime property is serving its time-honoured role as a refuge in times of international upheaval and uncertainty in currency markets this year has motivated some buyers, particularly those in US dollar-based currencies, who have benefitted from the strengthening US dollar.

An eight bedroom house on the Bay of Cannes

“Recent research indicating that the high net worth individual (HNWI) population is rebounding strongly, having risen by 14% in 2009 with collective wealth growing by 11.5% according to the Boston Consulting Group, is good news for the international second homes’ market.  The number of millionaires is rising fastest in the Far East, while Switzerland has the highest concentration of millionaire households and the USA has the overall highest number of millionaire households.

“Analysis of the quarterly prime international residential property values for Quarter 2: 2010, reveals that resale property values were highest per square metre in Monaco, St Jean Cap Ferrat and London at €45,000, €32,500 and €22,500. New build property values were more expensive per square metre then resale homes in Hong Kong, New York and London at €19,500, €16,750 and €16,500 respectively.” [1]

For more information, go on-line at: www.chestertonhumberts.com

[1].Chesterton local offices plus an Internet survey of other agents’ websites