Static Market Leads to Focus on Future Trends
There is now an official global trend that has emerged – as prices in the more recognized world-class cities continue to stagnate, demand is growing for luxury properties in secondary cities.
Knight Frank, a leading luxury real estate consultant, recently published a report that shows Moscow toping the global price growth index with a 11.1% growth in the third quarter of 2019. The Russian capital is followed by Frankfurt (10.3%), Taipei (8.9%), Manila (7.4%) and Berlin (6.5%) in the top five…and Bucharest (0.7%) is in the Top 45 for the first time!
This growing trend has become all the more obvious in North America – especially the US – where secondary cities such as Seattle, Richmond (VA), Austin, Nashville, Charlotte, St. Louis, and Denver are reporting markets favorable to luxury sellers. In this month’s report, these single-family home markets are clearly defined in the statistical table.
Looking at the condo market and new markets such as Virginia’s Arlington, Alexandria and Fairfax, the counties of Marin, Ventura and Orange in California, Colorado’s Denver, Boulder and Douglas County and Ontario’s Greater Toronto Areas of Durham and York are also seeing seller markets.
Whether its global or more local, there seems to be a diversification of real estate wealth as the affluent seek to invest their money wisely for the future. There has also been a growing acceptance that political uncertainty is causing a slowing price increase in the majority of the world’s major cities. From increasingly difficult trade relations, political tensions, looming elections to the ongoing conundrum of situations such as Brexit.
What is significant and equally unexpected is that investment in real estate has shied away from traditional safe havens in popular major cities and instead chosen to take a risk in these secondary markets.
In PricewaterhouseCoopers’ (PwC) recent report – Emerging Trends in Real Estate 2019 – they identify the markets of Dallas/Fort Worth, Brooklyn, Orlando, Raleigh/Durham and Nashville as their top five fastest growing markets.
Their report also identifies that Florida is seeing an increase in growth with Tampa Bay, St. Petersburg, Miami, and Fort Lauderdale all ranked in the Top 20, and the Texas cities of Austin and San Antonio also join these ranks for another year.
Read the full article here.