London and New York are the two frontrunners for the title of the world’s leading prime property market. Throughout history they have swapped positions frequently and both enjoyed periods of boom and bust. In 2009 Hong Kong entered the equation and was the most favoured market, but the two traditional leading markets quickly fought to close the gap. By 2014 London had regained the position, outperforming all other major markets in the world.
Figures from Frank Knight show exactly how London has turned the tables. In 2009 2,147 luxury homes and apartments valued at between $2m to $5 were sold in London. This number was on par with New York and only slightly behind Hong Kong. In just five years London had seen the number jump to an incredible 6,250 and left the competition behind. Over that period New York had half of that number and Hong Kong was even further behind.
In the ultra-prime market where properties are valued at over $5 million London again outperformed all of its competitors easily. The number of sales in this luxury market in London in 2014 was 1,638. Manhattan, New York only had 796 and Hong Kong was even further behind with 596.
The reason for this performance is the multitude of new builds that are taking place across the city. London had more residential completions in the last 5 years than any of its competitors. The city has embraced the skyscraper, with hundreds of properties under construction or with approval. This has provided a major influx of properties and given buyers plenty of opportunities. The fact that the structures are designed by renowned architects and feature luxurious facilities makes them even more attractive.
New York is fighting back by planning on making $30 billion worth of properties available over the coming years. This includes 100 new skyscrapers across Manhattan. The impressive 432 Park Avenue is the jewel in the crown of these developments and will become the largest residential property in the world. It will be interesting to see if the plan can help to bridge the gap to London.
Investors will continue to debate the merits of London and New York for years to come as they look for the best place to purchase properties. The market is a very interesting one and keeps both the investors and advisors on their toes. At Finefair we are committed to offering the best advice we can for people targeting London, as well as full property and estate management for properties in Waltham Forest and throughout the rest of the capital.