Skip to main content

Hong Kong ranks highest for 'billionaire' properties

By Sophie Brown, for CNN
March 21, 2013 -- Updated 0730 GMT (1530 HKT)
Hong Kong tops Savills index of the world's most expensive luxury real estate. Hong Kong tops Savills index of the world's most expensive luxury real estate.
HIDE CAPTION
Top billionaire property No. 1: Hong Kong
Top billionaire property No. 2Tokyo
Top billionaire property No. 3 London
Top billionaire property No. 4 Paris
Top billionaire property No. 5 Moscow
Top billionaire property No. 6 New York
Top billionaire property No. 7 Shanghai
Top billionaire property No. 8 Singpore
Top billionaire property No. 9 Mumbai
Top billionaire property No. 10: Sydney
<<
<
1
2
3
4
5
6
7
8
9
10
>
>>
STORY HIGHLIGHTS
  • Savills: Real estate values worldwide have doubled in the past seven years
  • Rise due to the emergence of new wealthy classes and rising commodity prices
  • Most growth in ultra-luxury properties happening in Asia Pacific
  • London is one of the few 'old world' real estate markets that is bucking this trend

Hong Kong (CNN) -- Hong Kong's billionaire properties are the most expensive in the world, according to global real estate firm, Savills.

"Ultra-prime" properties in Hong Kong cost £7,200 per square foot ($10,880) on average, Savills said in its latest World Cities Review report, which compares property prices for top luxury homes. Other Asia Pacific cities dominated the ranking, with Tokyo, Shanghai, Singapore, Mumbai and Sydney all among the top 10 most expensive cities to buy luxury property in 2012.

Real estate values worldwide doubled in the last seven years, with large increases seen in China and Asia, thanks to the emergence of new wealthy classes and rising commodity prices, the report said. Singapore and Mumbai experienced the highest growth in property prices since 2005, with a growth of 232% and 176%, respectively. Tokyo had the slowest growth at 8%.

"The activity of billionaires in international real estate markets reflects the creation of global wealth and the economic success of particular regions and cities," the report said. "This means that the cities in newly emerged economies have significantly outperformed those in the 'old world' economies of the U.S., Japan, Australia and Europe."

READ MORE: Report: U.S., China dominate global billionaires

China reins in property market
Retail rental space rising in Hong Kong
Russians make waves in UK real estate
The $640,000 parking space

New York stands out among world cities as "particularly good value" for residential properties, "especially from an income return point of view," according to the report. New York has dropped to seventh on the list of most expensive residential real estate cities -- down from fourth in 2005.

"Only London's ultra-prime market stands out among the 'old world' cities as having shown significant growth since 2005, totaling 107%," the report said.

Real estate costs for businesses are cheapest in Mumbai, with Sydney offering the best value for money. "We may well see Sydney becoming an increasingly global city as it proves attractive to new and expanding business on the Pacific Rim," the report said. But restrictions on foreign buyers to purchase homes remain an obstacle, according to Savills.

READ MORE: Report reveals where world's richest live

New tax measures to curb real estate spending have caused slowdowns in markets from Asia to Europe. In 2012, Singapore's growth slowed to 5%, Hong Kong's growth stalled in the second half of the year, and London slowed noticeably in the second half, Savills noted.

Paris saw a drop in billionaire property values, but remains the fourth most expensive city overall for top-end homes, at an average price of £2,900 per square foot ($4,383).

READ MORE: Best place to buy property in Asia

The report also looked at leisure resort areas -- like Cap Ferrat in France, Alibag in India and Phuket, Thailand -- which lag in values compared to urban properties but have the most potential for growth, according to Savills.

"Billionaire activity has been concentrated on high-end urban centers rather than leisure properties in the surrounding countryside or regional sunbelts," said Yolande Barnes, head of world research at Savills. "This reflects a global preference for urban locations as these billionaires need to be located in cities where they can do business."

The highest price for an individual property in the last seven years was recorded in London's Kensington Palace Gardens, where a home sold for £8,500 ($12,850) per square foot in 2008.

READ MORE: What city has world's best quality of life?

ADVERTISEMENT
Part of complete coverage on
June 17, 2014 -- Updated 1206 GMT (2006 HKT)
London is promoting its tech stars to shows it can compete with Silicon Valley. Here are five companies to watch.
June 18, 2014 -- Updated 1222 GMT (2022 HKT)
It's not easy being Jordan and it is about to become even more difficult, again.
June 18, 2014 -- Updated 1502 GMT (2302 HKT)
At the last football World Cup, it was all about 3D. This time around, it's nothing less than 4K.
June 5, 2014 -- Updated 1416 GMT (2216 HKT)
Bob Mazzer has photographed inside London's Tube network for 40 years. He's captured history.
June 13, 2014 -- Updated 1529 GMT (2329 HKT)
Iraq produces 3.3 million barrels per day and has the world's fourth-largest oil reserves. But the current crisis is putting all this in danger.
June 18, 2014 -- Updated 1222 GMT (2022 HKT)
Sandwiched in between Iraq and Syria, Jordan's destiny seems to be one of a constant struggle for survival. John Defterios explains.
June 16, 2014 -- Updated 1314 GMT (2114 HKT)
The gas standoff between Russia and Ukraine could have a knock-on effect on Europe. Explore this map to find out why is the EU nervous.
June 5, 2014 -- Updated 1416 GMT (2216 HKT)
Bob Mazzer has photographed inside London's Tube network for 40 years. He's captured history.
June 17, 2014 -- Updated 1206 GMT (2006 HKT)
The UK capital promotes its tech stars and shows it can compete with Silicon Valley. Here are five companies that pitch to make it big.
June 3, 2014 -- Updated 0956 GMT (1756 HKT)
Banksy has condemned an exhibition of his work after organizers defended their decision to remove his art from public spaces.
June 3, 2014 -- Updated 1029 GMT (1829 HKT)
As debate rages over whether Banksys should be for sale, we direct you to the ones you can still see on the streets.
June 2, 2014 -- Updated 1338 GMT (2138 HKT)
While Ukraine's fight for freedom gets bloodier by the day and Russia faces the West's cold shoulder, one oligarch is using art to get his message across.
May 30, 2014 -- Updated 2114 GMT (0514 HKT)
Index on Censorship's Jodie Ginsberg argues the "right to be forgotten" decision is too woolly.
May 29, 2014 -- Updated 1613 GMT (0013 HKT)
Andy McNab says being a psychopath makes us better at business, life and love. Could he be right?
May 28, 2014 -- Updated 1720 GMT (0120 HKT)
Google has revealed a prototype of its latest driverless car -- and this one doesn't even have a steering wheel.
May 30, 2014 -- Updated 1024 GMT (1824 HKT)
CNN's Nina dos Santos speaks to the mothers of successful children and asks them: What's the secret of bringing up a winner?
May 26, 2014 -- Updated 1613 GMT (0013 HKT)
Far-right and far-left parties across Europe caused a political "earthquake," with a string of victories in voting for the European Parliament.
May 26, 2014 -- Updated 1623 GMT (0023 HKT)
CNN's Fionnuala Sweeney speaks to Mihaela Carstei about the $400B gas deal recently struck between Russia and China.
May 21, 2014 -- Updated 0818 GMT (1618 HKT)
The EU is struggling to identify its vision after financial crisis. The European elections are key, and Nina dos Santos says the union needs a new vision.
May 26, 2014 -- Updated 1135 GMT (1935 HKT)
CNN's Nina Dos Santos sits down with Elon Musk's mother Maye, who tells her the story of her family and their success.
May 7, 2014 -- Updated 1410 GMT (2210 HKT)
Boko Haram attacks have shifted the focus at the World Economic Forum hosted by Nigeria, CNN's John Defterios explains.
May 20, 2014 -- Updated 2219 GMT (0619 HKT)
Russian oligarch is set to lose half his wealth after being ordered to pay his former wife $4.5 billion in a divorce settlement.
April 2, 2014 -- Updated 1324 GMT (2124 HKT)
China's ultimate goal is to reach a wide-ranging trade agreement with the EU. The EU hopes to persuade China to open its markets.
ADVERTISEMENT