Hong Kong home to world’s costliest prime property

HONG Kong stands apart as the most costly city location in the world for prime property, some 61 per cent more expensive than its nearest rival London, new research has found.

The typical prices of a prime resale apartment in Hong Kong is $4.5 million which is 45 per cent more expensive than London where the typical price is $3.1 million and 55 per cent more than Paris where the typical prices is $2.5 million.

The analysis from international real estate firm Savills also shows that other top tier world cities include Singapore with an average prime price of $2.3 million, New York at $2.1 million and Shanghai at $2 million.

Dubai heads the second tranche of cities costing $1 million to $2 million per property. In Dubai prime two bed apartments cost $1.9 million, but on a square foot basis just $800, which the report explains is due to the fact that new build properties in the emirate are larger.

Savills says that good value can be found in Milan, Sydney, Venice and Los Angeles where large space standards push the cost per square foot below $650. By contrast, San Francisco’s typical prime two bed price point may only be $1.35 million, but smaller space standards mean it is much more expensive on a per square foot basis, topping $1,000 per square foot. Geneva also starts to rival the top-tier cities on a floor space basis, for similar reasons.

Some of the world’s top resorts rival the world cities on a cost per square foot basis. For example, prime, four bedroom villas in the Swiss Alps and in the French Riviera are currently more expensive than apartments in Paris, Singapore and New York on dollars per square foot basis.

The Swiss Alps is the most expensive location in which to buy a ‘retreat’ or leisure property. A four-bed chalet here has a typical price of $4.5 million followed by the Riviera follows at $3.75 million for a well-located villa. Property here is currently costly on a US dollar per square foot basis at $1,650 per square foot, which reflects the prevalence of more compact properties in this highly desirable location.

The prime Algarve market comes in third, at just over $3 million but is much cheaper by area as typical villas are much larger than in the Alps or Riviera.

Other prime second home markets are relatively close in pricing points, ranging from $2.1 million in Barbados, to Tuscany and Umbria in Italy at $1.5 million and St Kitts and Nevis at $1.3 million at the lower end.