According to Knight Frank's newest Global Residential Cities Index, the annual rate of home price growth (globally) went from 4.1 percent to 4.7 percent between Q2 and Q3 2020, while 18 international cities had prices rise by more than 10% year-on-year, up from 16 in Q2 2020. pearl qatar island
This does not indicate that the city has died, but it does reflect that demand has remained resilient over the pandemic, with few discounted or distressed purchases.
The increase in price increases is due to record low interest rates, massive fiscal stimulus measures, and the release of pent-up demand in Q3, and with travel restrictions in place during this time, buyer demand was mostly domestic in nature.
Emerging markets are leading the trend, with Manila seeing a 35 percent increase in prices year over year. Banks in the Philippines are reporting increased construction and labor expenses, as well as robust demand for high-end projects. Izmir (28 percent), Ankara (27 percent), and Istanbul (26 percent) are the second, third, and fourth most populous cities in Turkey, respectively, with St Petersburg (19 percent) rounding out the top five.
Despite 20 rounds of cooling measures over the previous four years, Seoul's annual price increase has remained over 15%, boosted by the city's rapid economic recovery and some speculative activity.
With news this month that Canada is mulling a national foreign buyer tax, four Canadian cities (Ottawa, Halifax, Montreal, and Hamilton) have risen to the top 20. Three cities in the United States have made it into the top twenty (Phoenix, Seattle and San Diego).
In the year leading up to Q3 2020, prices fell in 15% of cities, with India, Spain, and the United Arab Emirates significantly represented.
All eyes are now on Q4 data, which may reveal significant regional differences. Due to recent lockdowns, price rise in Europe may decelerate in Q4 before a further release of pent-up demand in Q1 2021, while sales and prices in some regions of Asia may begin to gain traction.
The United Arab Emirates and the United States of America are driving wealth. The High-End Property Market in the United Kingdom in 2020
According to UK mortgage broker Enness Global, the UAE, the United States, and Australia are the main countries of origin for high-end international house purchasers entering the UK property market during the 2020 Coronavirus outbreak.
According to Enness data, the UAE is now leading the way in terms of the highest number of mortgage deals secured by international buyers throughout the top-end of the UK market. Enness has completed 35 percent of all deals thus far in 2020 in the country.
The United States is the second most important country in terms of current market activity, accounting for 14% of all transactions.
International purchasers from Australia (9%), Cyprus (5%), Germany (5%), Saudi Arabia (5%), Singapore (5%), and Switzerland (5%), among others, contribute for a significant share of current market activity in the UK's top tiers.
Malaysian buyers, on the other hand, are in the lead when it comes to the average value of the property being acquired. The average property valuation for Malaysian purchasers who obtained a mortgage through Enness so far this year has been £5.1 million.
Homebuyers from Cyprus (£3 million), Switzerland (£2.4 million), and Monaco (£2.25 million) rank first, second, and third, respectively, with an average purchase value of £3.6 million.
Who is the most reliant on borrowing?
With the most expensive purchases, it's no wonder that Malaysian and American buyers had the highest average loan amounts, borrowing £3.57 million and £2.94 million, respectively. Swiss buyers are borrowing the most money, at £1.773 million, followed by Cypriots (£1.635 million) and Jordanians (£1.54 million).
Who is the most generous with their deposit?
Buyers from the United States and Malaysia are also putting down the highest money, with deposits of £1.863 million and £1.530 million, respectively. Buyers from Cyprus are putting down an average of £1.375 million, with buyers from Monaco (£1.150 million) putting down deposits of over £1 million.
Hugh Wade-Jones, Managing Director of Enness Global Mortgages, stated, "Despite the clear constraints that have created additional barriers for many international buyers so far this year, we've seen a wide spectrum of countries continue to commit to a purchase at the high end of the UK market.
The UAE is presently driving the most activity, while Malaysian and American purchasers constantly rank first in terms of the amount borrowed, the price of residences acquired, and the deposits placed in the present market.
Due to the ongoing theatrics generated by Brexit over the last few years, and, of course, the more recent issues created by the current pandemic, international interest has been relatively muted in some ways.
However, as the domestic market has regained its footing, we've seen an increase in demand from the foreign circuit. Many people believe that the swift recovery of market health at lower price levels is a promising sign that the high-end market will soon follow.
As a result, they've decided that now is the moment to commit, and this increase will soon be visible in terms of top-line pricing rise."