Average prime (luxury) prices worldwide expected to increase +4% in 2021. Sydney Australia luxury prices expected to increase +10% in 2021.
Prime Residential Price Forecast for 2021
According to the latest Knight Frank research, average prime (luxury) property prices are expected to increase +4% this year. Such an increase of +4% in 2021 is more than the increase of +3% predicted by Knight Frank in 2019 and more than the forecasted increase of +1% in May 2020.
Knight Frank is predicting that average prime (luxury) property prices in Sydney Australia will jump a whopping +10% this year.
Luxury Home Prices in Worldwide Cities Are Rebounding
Due to government measures taken worldwide, Kate Everett-Allen, the head of international residential research with Knight Frank, luxury prices in international and domestic residential markets are coming back to life.
Everett-Allen said, “Government fiscal stimulus measures have been revised upward, protecting jobs and incomes via furlough schemes, meaning there have been few forced property sales. Banks in key developed markets offered mortgage holidays to customers reducing repossessions and foreclosures.”
Pandemic Inspired Many to Relocate and/or Buy Other Homes
Everett-Allen continued. “Households accrued a total of over US$5T globally in savings during lockdown, enabling some homeowners to undertake home improvements. Others have opted to relocate, upsize, downsize or buy a second home/investment property.”
Luxury Price Increases Around the World
After projecting a whopping +10% increase in Sydney’s luxury residential prices in 2021, Knight Frank is forecasting an uptick of +6% in Miami’s luxury housing prices.
Both Los Angeles and Hong Kong are predicted to see +5% lux price increases in 2021, according to Knight Frank.
The London-based research firm predicted that luxury home prices in New York would rise +4% in 2021. If this prediction comes to fruition, this would be the first positive price growth for luxury homes in the Big Apple since 2018 and its strongest price bump since 2015.
Projected Luxury Residential Prices in 2022
Knight Frank is forecasting that Sydney will share the number one spot for biggest price growth with London next year. Average luxury home prices are projected to jump +7% in each city. (Obviously, Sydney’s lux prices would decline from its 2021 +10% to a much more modest increase in 2022 London’s lux prices are expected to rise +5% in 2022.)
Knight Frank is predicting a price bump of +5% for both Hong Kong and Los Angeles in 2022 and an increase of +3% in New York.
Red Flags?
Knight Frank’s latest red lag warnings related this year’s and 2022’s luxury home prices include:
- Slow vaccine rollouts worldwide
- Uncertainty of the Delta variant of the COVID virus
- Rising interest rates
- Government cooling measures
Thanks to Knight Frank and MansionGlobal.
