CBRE publishes Global Living Report: A City by City Guide
November 3, 2015, Shanghai – CBRE has recently released its latest research report entitled Global Living Report: A City by City Guide, which explores the world’s most popular residential locations (total of 31 cities) based on multiple factors influencing the housing market. As the findings show, four cities in Asia made it into the Top 10 list of cities with the highest average annual housing price increase. Shanghai and Beijing ranked 7th and 8th with an increase of 14% and 12% respectively.
Dublin topped the list last year at 21.6%, on the back of an improving economy nationwide. Following Dublin is Hong Kong at 2nd place with 20% average growth. Abu Dhabi in the Middle East also made it onto the list with a 12% increase taking 10th spot.
Top 10 Cities with Highest Growth in Average Annual Housing Prices
| Top 10 Cities | Average Annual Housing Price Increase (%) |
|---|---|
| 1. Dublin | 21.6 |
| 2. Hong Kong | 20.0 |
| 3. Edinburgh | 20.0 |
| 4. Sydney | 16.8 |
| 5. Berlin | 15.6 |
| 6. Istanbul | 15.0 |
| 7. Shanghai | 14.0 |
| 8. Beijing | 12.4 |
| 9. Cape Town | 12.1 |
| 10. Abu Dhabi | 12.0 |
Commenting on the future market trends
in China, Frank
Chen, Executive Director, Head of CBRE Research, China, said: “since the end of 2014, conditions in the housing market have improved
following a series of interest rate cuts in
conjunction with the lifting of Home Purchase
Restrictions (HPRs) in most tier II cities. The interest rates in
China are currently at historically low
levels. Given that domestic demand for asset allocations is still robust,
residential real estate is expected to remain a key growth
sector over a certain period of time.”
Shanghai: A set of policy changes stimulated demand and sales volumes were on the rise. Latest data suggests there has been a 14% surge in prices in Shanghai, meaning an average apartment would cost around $362,990.
Beijing: The government’s legislative efforts are also showing effectiveness in boosting the residential market in Beijing. Housing prices have picked up quickly by 12.4%, and the average cost to purchase a residential property is $367,568 in Beijing.
Compared with the 3% average annual housing price decrease nationwide, Beijing and Shanghai have been leading the price jump in residential property. Although the first quarter of 2015 remained fairly muted, at the end of March the People’s Bank of China lowered the minimum down payment for both first-time buyers and upgraders, followed by benchmark interest rate cuts in both May and June. Despite the continued housing purchase restrictions at the city level, these policy changes stimulated demand and sales volumes picked up.
“Businesses in tier
I cities are constantly seeking to expand office space, which means these
cities are providing more job opportunities and continue to be preferred
destinations for home buyers. As a result, developers and investors are keen to
increase their investments in these locations.
That’s why we keep seeing record-high
land deals in tier I cities,”
added Frank Chen.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
