September 23rd, 2011
04:32 AM GMT
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Hong Kong (CNN) – According to a report compiled by Savills, a global real estate consultant, Hong Kong has the world's most expensive luxury property market.

Of the 10 “world class” cities profiled—Hong Kong, London, Moscow, Mumbai, New York, Paris, Singapore, Shanghai, Sydney and Tokyo—the average £6,700 ($10,316) per square foot price of Hong Kong luxury homes was the highest in the world. Behind Hong Kong was Tokyo’s £5,190 ($7,991) price per square foot. Paris, with luxury flats averaging £3,270 ($5,035) per square foot, came in third.

The report noted that Hong Kong’s luxury homes were twice as expensive as London’s per square foot, and more than 10 times more expensive than Sydney’s.

Hong Kong’s sky-high prices are fueled by market demand for “trophy homes,” especially from Mainland Chinese investors, and the city’s limited supply, the report said. "Many more of the world's billionaires are being created in China, rather than in New York or London, and it is shifting the buying patterns," Yolanda Barnes, director of residential research at Savills, told the Financial Times.

The cost of luxury homes is rising fastest in “emerging ‘new world’ economies,” Savills reported. Prices for top-end homes in Singapore grew 144% since 2005. Prices in Mumbai rose 138%, while Moscow climbed 110% and Hong Kong grew 83% in the past six years. Shanghai’s relatively low 32% growth rate is attributed to the closed, domestic nature of its billionaire market, while other cities are able to attract international buyers.

While Hong Kong’s luxury homes snagged the first place in price per square foot, Savills’ report noted that luxury homes in Tokyo were the most expensive in total value, as they tended to be bigger, averaging 16,000 square feet. Tokyo is also home to the most expensive flat, an £83 million ($128 million) property, in any of the cities surveyed.

Of the 10 cities surveyed, only Moscow had smaller homes on average than Hong Kong, averaging 4,600 square feet and slightly over 5,000 square feet, respectively.

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Filed under: AsiaHong Kong


soundoff (41 Responses)
  1. Professional Reporter

    So it's Savills Top Ten of the 10 cities they decided to have a closer look at.
    I.e. not a representative sample, from a single source, who also happens to be a stake-holder.
    Other media would put "Advertorial" next to the headline, not so CNN.
    After the gossip, now come the adverts. "CNN: Commercials, Not News!"

    September 23, 2011 at 5:11 am |
  2. Professional Reporter

    So it's Savills Top Ten of the 10 cities they decided to have a closer look at.
    I.e. not a representative sample, from a single source, who also happens to be a stake-holder.
    Other media would put "Advertorial" next to the headline, not so CNN.
    After all the gossip, now we get the adverts. "CNN: Commercials, Not News!"

    September 23, 2011 at 5:14 am |
  3. josh

    lol they put Mumbai on here but not Sao Paolo? Mumbai is disgusting and far from "world class"

    September 23, 2011 at 6:03 am |
  4. angelo99

    Why anyone would want a luxury condo in either Moscow or Mumbai is beyond me. If you can afford something like that, why would you stay in a dreary city populated by dreary people like Moscow or a complete mess like Mumbai.

    September 23, 2011 at 6:08 am |
  5. Gary

    @josh.....well they have mumbai because it is one of the most expensive cities in the world.........sao paolo is notas expensive.....its simple......

    September 23, 2011 at 6:52 am |
  6. Gary

    @angelo99............ some of the worlds richest billionaires live in mumbai..........i suppose they would be smarter than you....

    September 23, 2011 at 6:54 am |
  7. pete

    @Josh

    Yes but India's millionaires and billionaires live in Mumbai, so when there's demand...

    September 23, 2011 at 7:21 am |
  8. Bangkok Resident

    The ONLY world-class city in the world is Bangkok. By world-class I mean a city that's sophisticated, cosmopolitan, energetic, modern, safe and with a great transport system, great shopping, pleasant to live in, with endless business opportunities and nightlife, amazing food, and where you can still rent a very nice, spacious apartment for around 30,000 baht a month (US$1,000). If you're able to pay up to US$2,000 a month, you can enjoy a home of incredible luxury in Bangkok. This very low cost of living combined with all the entertainment, dining and work opportunities, not to mention tropical paradise beaches less than an hour away, make Bangkok an unbeatable world-class destination in my opinion.

    September 23, 2011 at 7:33 am |
  9. Rahul

    @Josh – so are you buddy ;-)
    Mumbai has everything going for it and is evolving all the time – People are fantastic. Can't comment about Sao Paolo.

    September 23, 2011 at 7:53 am |
  10. Joshua

    Some guy just built a billion dollar house in Mumbai complete with theater, helipad and 20 or so floors for parking. So I guess there is something there !

    September 23, 2011 at 7:58 am |
  11. MarcXW

    I find it pretty amazing that only 10 cities were surveyed, look at the prices of property in Switzerland, especially Geneva and you'll understand what expensive really means.

    September 23, 2011 at 8:31 am |
  12. hadongvinh

    Dear angelo99,
    I agree with you;I have lived in Bombay some time ago :a nightmare.!!!

    September 23, 2011 at 10:01 am |
  13. Peter

    I just visited the Philippines and I can say Manila is a luxury city. It seems Asian cities are propping up to be homes of high rollers. Manila was beautiful and modern. I was surprised to see it was like a western city implanted in Asia. It is a place for for luxury.

    September 23, 2011 at 10:18 am |
  14. Ong Bank

    I dont agree with Rahul. Property rates are increasing along with number of slum areas in the city. Dharavi, asia's largest slum area is no the biggest asian slum area as two new big slum areas in Mumbai suburbs have overtaken it. Weather is quite humid, neatness needs a new definition in mumbai and many more reasons put me off on mumbai.

    I love BKK for the courtesy of people, passion for growth and best performer in ASEAN region.

    September 23, 2011 at 10:38 am |
  15. saywhat

    To the one guy who said Manila is a luxury city, I am speechless. Manila is the Tijuana of SE Asia. I've lived in these parts for the last 4 years and have had the same response from anyone who's has ever been there including myself- that it is the a**hole of the Earth (and i heard it called that by two different people on separate occasions). The only positive review I have ever heard came from someone who had a rich friend show him around and avoid all the bad parts- even then, flying in is descending into a thick fog-like smog. Yikes. I am not doing this description justice. I would go back for Palawan but not spend one minute in Manila.

    September 23, 2011 at 10:39 am |
  16. justis

    Indian Cities are Sucks! and their people are the worst!

    September 23, 2011 at 11:09 am |
  17. Iqbal

    I disagree with you CNN. Many of the cities are not mentioned Like many Brazilian City Sao Paul and What about Middle East many cities like Dubai and Abu Dhabi they are also quite expensive in property market. Mumbai is expensive not because of its QUALITY property but Mostly because of its HUGE population ratio to the city.
    MIND you all these are disgusting to live in as the population are getting higher so much that there is no life. I Would never buy residential property there rather maybe commercial one.

    September 23, 2011 at 11:18 am |
  18. Dexter St. Jaques

    Political smugness backfires .. no more shelter for from world's economic problems ... http://canuckreport.ca

    September 23, 2011 at 12:42 pm |
  19. Steve Moore

    Moscow has more Billionaires than New York City and is far from Dreary. It is a wonderful economy and is "More" modern than most worldly destinations. UNRH trades on the OTCBB and is a construction company in Moscow that builds luxury homes. It is time to consider investing in Moscow and UNRH is a wonderful entry point into the market.

    September 23, 2011 at 12:45 pm |
  20. Miko Guillaume

    What about the Middle East , why they not mentioned they are the highest in that way .

    September 23, 2011 at 1:06 pm |
  21. chris

    CNN – may want to check your maths on the sq footage? At an average price of $8k / sqf in Tokyo for instance, the average 16,000 sqf home costs almost $130mm – about the same as the most expensive... Woops!

    September 23, 2011 at 2:22 pm |
  22. Andrew

    @chris The "average 16,000 sqf home?" Nothing average about a 16,000 square foot home.

    September 23, 2011 at 2:36 pm |
  23. ivanir ribeiro

    não é que eu seja desenteligente ou sem noção mais o lugar mais bonito mais lindo mais luxuoso mais confortavil mais agradavel é onde se vive o dia a dia,guardados na sua porpoções é logico.mundo muito louco.

    September 23, 2011 at 2:42 pm |
  24. ivanir ribeiro

    adorei a velocidade da postagem

    September 23, 2011 at 2:44 pm |
  25. chris

    Andrew – haha agree. Obviously we're talking on a "luxury" scale here!

    September 23, 2011 at 2:50 pm |
  26. ivanir ribeiro

    somos todos passageiros desta espacionave gigante chamada TERRA e sem o controle do leme.mundo muito louco.

    September 23, 2011 at 2:52 pm |
  27. ivanir ribeiro

    hoje tive a certeza de quando se fala em primeiro mundo a velocidade como posta os comentarios tirei o chapeu pro site da CNN vai ser o meu preferido.

    September 23, 2011 at 3:03 pm |
  28. ivanir ribeiro

    obrigado tenhos que parar agora esposa tirou eu da sala para limpar a mesma.mundo muito louco.

    September 23, 2011 at 3:07 pm |
  29. Jane

    I just got a $829.99 iPâd2 for only $103.37 and my mom got a $1499.99 HDTV for only $251.92, they are both coming with USPS tomorrow. I would be an idiòt to ever pay full retail prices at places like Wâlmart or Béstbuy. Go here at CoòlCént.còm

    September 24, 2011 at 2:04 am |
  30. Tak Lam

    I live in Hong Kong. I have serious doubts about the statistic "the average £6,700 ($10,316) per square foot price of Hong Kong luxury homes". Will Savills or CNN explain how the average was obtained?

    September 24, 2011 at 2:58 am |
  31. Dexter St. Jacques

    Precarious financial position .. we will miss financial targets, country will slide further into debt ... http://canuckreport.ca

    September 24, 2011 at 1:15 pm |
  32. EA Marco Polo

    World's most expensive luxury city is...

    ------–

    The topic is not good. Suggestion: World's most expensive "luxury homes" city is...

    85% Singaporean is living in "citizen apartments (state-built apartments)", it is built by governmental support.

    Singapore's "luxury homes" is expensive, but Singapore's restaurants are cheaper than any cities on Europe and the US.

    September 26, 2011 at 2:18 am |
  33. EA Marco Polo

    Hong Kong’s sky-high prices are fueled by market demand for “trophy homes,” especially from Mainland Chinese investors

    ------

    Because, they invest on Hong Kong could get the PR of Hong Kong; then they are freer for traveling the world; departing and entering Mainland China.

    In geography, Hong Kong is small and Hong Kong's plain is also small; hills and mountain are the main terrain.

    Indeed! Hong Kong's luxury homes and common homes both are too expensive.

    September 26, 2011 at 2:28 am |
  34. S J

    I'm really sceptical about the accuracy of some of the figures given. Is it possible for HK and Moscow to have average home size of 5000 sq feet and 4600 sq feet respectively ??? I suspect one extra "0" was wrongly added ! Poor CNN !!

    November 1, 2011 at 8:19 am |
  35. bkh808

    why would anyone want to live in Mumbai. GROSS

    November 1, 2011 at 6:34 pm |
  36. Hema

    300k + ? Wow. A fool bought this condo. Good for him. Idiots. Jus twhen you thuoght all the idiots couldnt get anymore interest only mortages this guys sells his junk condo at the top of the heap.

    March 31, 2012 at 4:48 am |
  37. Sydney

    Mumbai, isn't exactly the definition of "luxury" in my opinion.

    http://www.cheapeuropeantraveltours.com

    June 18, 2012 at 1:39 am |
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    July 24, 2012 at 6:05 pm |
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    August 4, 2012 at 11:05 am |
  40. j devine

    Wow you really mean , I can live in a 600 sq ft apartment with 4 family members for $6,000,000. Listening to my neighbours shouting or whatever. Whilst awaiting my 30 storey elevator to walk in the smog to my little work place. Amazing. Just think how lucky I am. ITS ALL ABOUT BANKERS OVER VALUING PROPERTY TO RAISE PROFIT WITHOUT GOVERNMENTS HALTING IMPENDING DOOM.

    February 19, 2014 at 1:11 am |

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