Growing demand from rich international buyers, particularly among billionaires, is helping to create a new global super class of property in some of the world’s most important cities, according to fresh research.

These high-end global destinations continue to defy the wider economic downturn, with property prices in the top ten cities having increased by 10% in the first six months of 2011 compared to the corresponding period last year, the latest Savills Research global billionaire property index shows.

Hong Kong is the most expensive place to buy a home globally in value terms with average property prices standing at £6,700 (Cdn $10,800) per square foot, up 83% from December 2005 to December 2010 and an additional 10% on top of that to the end of June 2011.

In second place is Tokyo at £5,190 ($8,400) per sq.ft., followed by Paris at £3,270 ($5,300) per sq.ft. and London at £3,090 ($5,000) per sq.ft..

There has been significant capital growth in emerging markets. Russia (Moscow), ranked fourth, has witnessed values increase 110% from December 2005 to 2010 and a further 2% increase this year to take it to £2,520 ($4,000). Singapore has seen a 144% and 16% rise, while Mumbai has appreciated 138% and 7%.

The 10% average prime property price growth recorded in the top cities worldwide compares to average price growth of 6% for ordinary properties in the same cities,

Yolande Barnes, director of residential research at Savills, commented: “We recently identified ten world class cities whose real estate markets have more in common with each other than the mainstream markets of the counties in which they operate and they are all attracting billionaire’s dollars, whether generated at home or overseas.

“Global billionaires can make any country their home, and often have several different residences across the globe. Most will seek a base where they are doing business. This has the effect of funnelling global equity into the very best residential real estate, a rare commodity in any city. Billionaire buyers demand the best international standards of accommodation and are paying prices to match, creating a super class of global billionaire homes,” she added.

The Top 10 ‘World Class’ cities are as follows: Hong Kong, London, Moscow, Mumbai, New York, Paris, Singapore, Shanghai, Sydney and Tokyo.

Source: International Estate Agent Today

Resale home prices in Canada rose in July for the eighth consecutive month to a new record high, according to the Teranet-National Bank Composite House Price Index.

The index, which tracks price changes for repeat sales of single-family homes in six metropolitan areas, showed prices rising 1.3% in July from the previous month.

It was the fourth consecutive monthly increase exceeding one per cent and sent the index to a reading of 146.51.

Prices rose in five of the six metropolitan areas, advancing 2.3% in Calgary, 1.7% in Toronto, one per cent in Ottawa, 0.9% in Vancouver and 0.5 per cent in Montreal, while declining 0.9% in Halifax.

Five of the six areas hit all-time highs in July, with the exception being Calgary, where prices were still down 8.8% from the all-time high set in August 2007.

On an annual basis, prices were ahead 5.3%. The largest 12-month advance was in Vancouver, where prices were ahead 8.5%.

Source: Financial Post

Vancouver Sun September 17th, 2011

8878 165th Street, Surrey

Type: 7-bedroom, 5-bathroom detached
Size: 5,480 sq. ft.
B.C. Assessment, 2011: $900,000
Listed for: $1.175 million
Sold for: $1.1 million
Sold on: July 28
Days on market: 21
Listing agent: Mayur Arora at OneFlatFee.ca
Buyers agent: Jill Sinclair at Royal LePage Wolstencroft

The big sell: Many TV programs and magazine articles espouse the merits of decluttering a home in order to present it in the best possible light when it goes to market. According to listing agent Mayur Arora, the owners of this 1996 Fleetwood rancher did just that: presenting neat and spacious rooms that secured a sale in three weeks. Of course, there were a number of other factors that contributed to the sale, namely, a 17,000-square-foot lot, a central Surrey location with proximity to schools, the Guildford Mall and transit arteries. As well, the updated house has a games room, media room and play room, a walkout basement, a double and a triple-car garage, covered parking for an RV or boat, far-reaching views of mountains and farmland, and a backyard with a hot tub, 18-by-36-foot swimming pool and in-ground sprinkler system.

2508 — 788 Hamilton Street, Vancouver

Type: 3-bedroom, 2-bathroom apartment
Size: 1,047 sq. ft.
B.C. Assessment, 2011: $707,000
Listed for: $1.048 million
Sold for: $975,000
Sold on: June 29
Days on market: 61
Listing agent: Colette Gerber at RE/MAX Select Properties
Buyers agent: Tyler Barrs at RE/MAX Crest Realty Westside

The big sell: As the only unit in a development that has more than 1,000 square feet of living space — plus an 870-square-foot terrace — this sub-penthouse apartment in Yaletown’s TV Towers building is indeed distinct. With such substantial outdoor space, the 180-degree views span east to west, and according to agent Colette Gerber, that was the clincher for the buyers. There were also $100,000 of custom upgrades, including a $2,300 wine fridge and $10,000 wall-bed system with a pull-down desk, pullout bed and storage cupboards. As well, the home has upgraded appliances, custom cabinets, tile and hardwood floors, custom window coverings, black and white marble slabs lining the bathrooms walls — even a heated toilet seat. The furniture was also included in the package.

808 Millbank, Vancouver

Type: 2-bedroom, 2-bathroom townhouse
Size: 1,140 sq. ft.
B.C. Assessment, 2011: $501,000
Listed for: $645,000
Sold for: $645,000
Sold on: July 11
Days on market: 0
Listing agent: Peter Dixon at Sutton Group – West Coast Realty
Buyers agent: Adriaan Schipper at RE/MAX Crest Realty (Westside)

The big sell: This ground-level townhouse in south False Creek was snapped up for the asking price on the day it was listed. The property has a waterfront location with easy access to the seawall, Charleson Park and Granville Island. It sits on leased land that is prepaid until 2036 and has water and city skyline views. The interior has benefited from numerous updates since its construction in 1976, including a kitchen with new appliances, countertops, maple cabinetry and flooring. There are built-in closets and a new ensuite bathroom, together with a four-piece guest bathroom. The home has good-sized rooms that include an office and laundry space. There are two patios and underground parking, and the building was completely rain screened in 2008.

© Copyright (c) The Vancouver Sun