The forecasts for global real estate markets for the coming year may be gloomy, but over the past 5 years, prices have registered huge gains in the top real estate markets of the world. Naturally, this sparks fears of an asset bubble and raises concerns over an increasing household debt.
Top Countries with Hottest Property Markets
It is useful for you to know how Singapore ranks by way of affordability if you are intending to move to Singapore, be it as an employee or an investor. Thus, we present to you a list of the world’s 10 hottest property markets (by way of percentage point increase in indicative prices from 2006 – 2011) in ascending order, with the national 5-year averages reflecting the mainstream housing prices in most major cities of these listed countries except for China (only Beijing and Shanghai) below.
5-year price growth: 27.5%
Switzerland is home to some of the world’s most expensive cities, and it is not surprising that it has seen property prices boom in the past five years.
With low interest rates aimed at countering the franc and at slowing growth sparking this surge in prices, the highest level of home prices in nearly 20 years was recorded in Q4 2011, prompting the Swiss National Bank to try and stem what is deemed as excessive mortgage lending.
Swiss cities St. Moritz, Gstaad and Geneva were among the 10 most-expensive places, measured by square-meter costs. For instance, in Geneva, the average square-meter price of a prime property was US$31,900 in the fourth quarter of 2011.
5-year price growth: 28.5%
Despite measures by the Malaysian government to try and curb rising property prices in Malaysia, the prices have still increased significantly. Prime property in capital Kuala Lumpur costs about US$5,000 per square metre in 2011.
Due to pressure from middle-class Malaysians who are priced out of the real estate market by wealthier overseas buyers, however, the government is considering raising the minimum price of homes that foreigners can purchase from US$162,972 to US$325,944 and to consider doubling the entry price for foreigners buying property in the country.
Malaysia’s economic growth of over 5% in 2011 has also whetted buyers’ appetites for high-end condominiums that, while smaller, command a higher price per square footage because of the facilities and the prestige attached to them.
Norway
5-year price growth: 28.7%
Of all the European countries, Switzerland and Norway are the only European countries that are among the world’s hottest housing markets amidst Europe’s gloomy economic outlook. Norway, oil-rich and whose economy is set to grow 2.7% in 2012, has low interest rates facilitating the purchasing of property by citizens and contributing to the jump by 6.8% year on year in March despite figures indicating that housing prices have been growing almost twice as fast as wages this year. Like Switzerland, Norwegians buying property also get a 28% tax deduction on interest payments, which causes stress upon property prices.
5-year price growth: 28.7%
Unlike the U.S. whose housing market has still yet to recover from the 2008 global financial crisis and its massive debt, Canada’s housing market has stayed robust over the past few years due to a surge in existing home sales and in apartment construction.
Ontario, the country’s most populous province, has seen heavy investment in condominiums and numerous new urban developments increase by more than 50% in March.
Vancouver, its most expensive property market, is mostly popular with foreign buyers as it is often ranked among the world’s best places to live. Accordingly, it saw prime property prices jump 10.4% in the third quarter of 2011 from the period last year.
The average price for a residential property in Vancouver was US$734,207 in December, compared with the national average of US$358,261, according to the Canadian Real Estate Association.
Taiwan
5-year price growth: 30.1%
Rapid urbanization has led to crowded housing conditions in one of the world’s most densely populated countries, where housing prices rose more than 30% on average between 2006 and 2011. Recently, measures introduced by the government like the “luxury tax” and a 10% tax levied on any investment property sold within two years (or 15% if the property is sold within 1 year) have been slightly effective in driving down prices but Taiwan remains among the top 10 expensive places in the world to buy property.
Colombia
5-year price growth: 39.4%
Colombia, the only South American country on this list, attributes its increase in house buying especially among the growing middle-class as well as the surge in prices to its rapid economic expansion, with GDP growing nearly 6% in 2011. A relatively successful decade-long military offensive against illegal armed groups and drug cartels has also made it safer to do business in the country, thereby attracting foreign investment in droves (more than 30% in Q1 2012 to US$4.2 billion) and in turn boosting property prices. Foreign direct investment jumped compared to the period last year.
Singapore
5-year price growth: 50.5%
The most expensive real estate market in Southeast Asia and the third-most expensive city in Asia to rent high-end property, the average price of prime property in the little country was US$25,600 per square meter or US$2,600 per square foot in Q4 2011.
This is not surprising, seeing as how Singapore is a regional financial hub with world-class quality of life, public amenities and the penchant for ostentatious status-reflective property developments that offer a lifestyle representative of the ‘Singapore Dream’. Additionally, low interest rates and the massive immigration of people from all over the world in recent years have boosted demand for homes where space is a precious scarcity— foreigners make up almost half of Singapore’s almost 5.3 million residents and accounted for 18% of new homes sold in Q3 2011. For example, among these foreigners, PRC Chinese are the largest buyers accounting for 30.6% of foreign sales in Q3 2011.
Nevertheless, public discontent over such skyrocketing property prices has led the government to implement measures to cool the market. In December, the government hit foreign property buyers with an additional stamp duty equal to 10% of the property value. This has contributed to property prices marking their first quarterly fall in nearly three years of 0.1% in January to March this year.
Israel
5-year price growth: 54.5%
Having been the third-hottest housing market in the world since 2009, high property prices in Israel led to a series of protests in July 2011 with demonstrators demanding the government to intervene to cool the market. However, interest rate cuts have led to a resurgence in property demand, new mortgages issued by banks and an overall increase in price.
Hong Kong
5-year price growth: 93.7%
As a major global financial center, Hong Kong overtook London last year as the world’s most expensive office rental market and the average price of a home in prime areas was about US$47,500 per square meter or US$4,400 per square feet.
The growing wealth of mainland Chinese people, coupled with mainland China’s property restrictions, has led to an influx of wealthy mainland Chinese buyers in Hong Kong’s residential market in recent years, with as much as 30% of buyers for the luxury property being mainland Chinese buyers.
As such, in an effort to cool the market, the Hong Kong Monetary Authority introduced a measure recently requiring buyers whose principal incomes are not in Hong Kong to pay an extra 10% in down payment when buying a house in Hong Kong. Nevertheless, it remains the second-most expensive place in the world for the property.
THE COUNTRY WITH THE BIGGEST 5-YEAR INCREASE IN PRICE:
China (based on Beijing and Shanghai prices only)
5-year price growth: 110.9%
Housing prices in major cities Beijing and Shanghai have surged by over 110% in the past 5 years as the world’s second biggest economy experiences rapid growth of its economy.
A home in Shanghai’s prime areas costs US$19,400 per square metre or US$1,800 per square foot, from a survey at the end of 2011. In Beijing, the same type of property in a prime area costs an average of US$17,400 per square meter or US$1,600 per square foot.
Fears of a property bubble have led the Chinese government to limit multiple home purchases in the last 2 years, rising interest rates and hiking bank reserve requirements. However, despite these cooling measures, the country’s home prices are still far from a reasonable level, and the country’s property developers, have enjoyed rising sales and an increase in their market value this year.
Therefore, when moving to Singapore, it may be observed that there are many factors that you will have to take into consideration, not only in matters of pricing but also in tax issues. Do consult our Singapore tax professionals today for a clear assessment of your options.
Let us help you understand Singapore's property tax rates
Speak to our taxation specialists - we are experts when it comes to Singapore's individual and corporate tax rates and schemes. Our reliable guidance comes with 20 years of experience.
Rikvin’s content team includes in-house and freelance writers across the globe who contribute informative and trending articles to guide aspiring entrepreneurs in taking their business to the next level in Asia.
FAQs
Back in 2020, Hong Kong was crowned the “world's most expensive real-estate market” by CBRE Global Living, calculating the average property prices to be in the range of $1.25 million.
Where is the hottest real estate market in the world? ›
Back in 2020, Hong Kong was crowned the “world's most expensive real-estate market” by CBRE Global Living, calculating the average property prices to be in the range of $1.25 million.
What cities have the hottest real estate markets? ›
Main Findings
| Rank | MSA | Inventory Rank |
|---|
| 1 | Tampa-St. Petersburg-Clearwater, Fla. | 6 |
| 2 | Phoenix-Mesa-Scottsdale, Ariz. | 14 |
| 3 | Austin-Round Rock, Texas | 4 |
| 4 | Seattle-Tacoma-Bellevue, Wash. | 30 |
21 more rowsApr 27, 2023
1. Austin, Texas (Metro Area)
- While Austin certainly isn't as cosmopolitan as New York, San Francisco or Los Angeles, it does have all of the “big city” amenities any buyer could want plus warm weather to boot. ...
- Analysts predict Austin will continue to be a top market in 2022 and beyond based on population growth alone.
Charlotte, a 211-mile drive from the sands of the Atlantic Ocean, nabbed the top spot on our list of the hottest housing markets for 2023 due to its forecasted annual home price growth. While considered the hottest market, activity may be less than what buyers and sellers saw in Tampa last year, says Prakash.
Which country has fastest growing real estate? ›
The World's Hottest Real Estate Markets
- Switzerland. 5-year price growth: 27.5% ...
- Malaysia. 5-year price growth: 28.5% ...
- Norway. 5-year price growth: 28.7% ...
- Canada. 5-year price growth: 28.7% ...
- Taiwan. 5-year price growth: 30.1% ...
- Colombia. 5-year price growth: 39.4% ...
- Singapore. 5-year price growth: 50.5% ...
- Israel.
U.S. metros with the biggest increases in home values in 2022
| Metro area | Growth |
|---|
| 1. | FarmingtonNew Mexico | 20.3% |
| 2. | North Port-Sarasota-BradentonFlorida | 19.5% |
| 3. | Naples-Immokalee-Marco IslandFlorida | 17.2% |
| 4. | Greensboro-High PointNorth Carolina | 17% |
11 more rowsFeb 13, 2023
Commercial real estate is known to yield higher returns than residential real estate. If you can afford to manage a commercial space, it can prove lucrative over time, depending on your area.
Where real estate prices are cooling the fastest in the US? ›
Home prices in some US cities are finally cooling, with Seattle's housing market slowing faster than any other in the country. The 10 fastest-cooling markets are almost entirely in the West, with Seattle, Las Vegas, and the three California cities of San Jose, San Diego and Sacramento leading the way.
What state sells the most expensive houses? ›
1. Hawaii. Hawaii is known for its beautiful beaches, warm climate, and breathtaking scenery. However, it is also the most expensive state to buy a house, with a Zillow Home Value Index of $834,582.
The combination of record-fast home value growth to start the year and a record number of newly built homes increased the total market value of residential real estate in the U.S. in 2022, despite price drops to end the year. California remains untouchable on its perch as the most valuable housing market in the country ...
Where do houses sell the fastest? ›
Nashville was the hottest market, with an average listing time of 14 days. Seattle was the second fastest-moving, averaging 17 days. Omaha and Salt Lake City both averaged 18 days, and Cincinnati, Birmingham, Charlotte, Denver, Las Vegas, Manchester and San Francisco were also among the busiest.
What state has the best housing market 2023? ›
Texas replaced California in 2023 as the strongest housing market by state. With an existing home inventory of 83,222, the available houses for sale have more than doubled since last year. It has seen a drop of about 6% in new construction and is now at 248,648 since 2022.
What markets will boom in 2023? ›
Three Key Sectors in Which to Invest in 2023
- Consumer staples. ...
- Precious metals. ...
- Healthcare.
The Bay Area has the worst performing housing market in the nation, according to a new report.
Is the market crashing in 2023? ›
Top reasons why the stock market may crash in 2023
The housing market continues to slow nationwide. Big tech layoffs and hiring freezes may prompt other industries to follow suit in preparation for a 2023 recession. The manufacturing sector is arguably already in a recession.
What is the best performing property market in the world? ›
China and the US together make up 42 per cent ($84.8 trillion) of global property value alone. According to Savills, China is home to more of the world real estate market assets (by value) than any other country at $42.7 trillion or 21 per cent of global real estate value, just ahead of the US at $42.1 trillion.
Which country is the hardest to buy a house? ›
After Hong Kong, New Zealand and Australia were the least affordable countries overall in the study which looked at the U.S., Canada, the UK, Hong Kong, Singapore, Australia, New Zealand and Ireland. This chart shows the places where it's hardest to afford a home (2023).
What is the largest real estate market in the world? ›
Among the constituents of the MSCI Global Annual Property Index (Unfrozen; Weighting: Market Size) (see Exhibit 5), the United States remained the largest market in the index with an increase of 162 basis points in 2021.
What is the fastest growing city in the US? ›
Here are the 15 fastest-growing cities by population, according to the Census Bureau:
- Georgetown, Texas—14.4% (July 2021-July 2022)
- Santa Cruz, California—12.5%
- Kyle, Texas—10.9%
- Leander, Texas—10.9%
- Little Elm, Texas—8%
- Westfield, Indiana—7.7%
- Queen Creek, Arizona—6.7%
- North Port, Florida—6.6%
There is no quick way to make money or get rich in real estate, but you can grow wealth gradually and consistently by investing correctly. You are probably aware that there are numerous ways to accumulate wealth, but real estate is one of the most effective.
Do most millionaires invest in real estate? ›
Some of the most successful entrepreneurs in the world have built their wealth through real estate. In fact, it's estimated that 90% of all millionaires invest in some form of real estate. There are several reasons for this, but in today's article, we'll share seven reasons why millionaires invest in real estate.
Why are most millionaires in real estate? ›
Because of the many tax benefits, real estate investors often end up paying less taxes overall even as they are bringing in more income. This is why many millionaires invest in real estate. Not only does it make you money, but it allows you to keep a lot more of the money you make.
Which city has the highest rental yield? ›
City-Wise Rental Income Trends
| Cities | Rental Yield (in %) in 2019 | Rental Yield (in %) in 2022 |
|---|
| Bangalore | 3.6 | 3.9 |
| Mumbai | 3.5 | 3.8 |
| Navi Mumbai | 2.8 | 3.2 |
| Thane | 2.7 | 2.9 |
5 more rowsFeb 17, 2023
More On: housing
The largest decrease in home prices will occur in Austin, where values are projected to slump 19% by late 2024 compared to late 2022, according to the note. Prices are expected to sink in Phoenix by 16%, San Francisco by 15% and Seattle by 12%.
What is the hottest month for real estate? ›
Nationally, the best time to sell a house is March if you're trying to sell quickly, while the best time to maximize profit is July. Zillow recommends listing your home for sale in March, but no later than Labor Day, based on historical market trends.
What time of year is real estate the hottest? ›
Buying a house in summer
It's no secret that home prices tend to be higher in the peak summer season. Between April and August, homes sell above list price in greater numbers than any other time of year, according to Redfin data and Fit Small Business statistics.
What US city has most expensive real estate? ›
The most expensive city in the U.S. in terms of housing costs is San Jose, California. It combined the highest monthly housing costs in our study with the second-highest home values, but San Francisco wasn't far behind.
Who owns most expensive home in US? ›
Famous and Famously Expensive
The Chartwell Estate, located in Beverly Hills, California, is owned by the late head of Univision, Jerry Perenchi. Built in 1933, the French neoclassical home encompasses 25,000 square feet of land.
Where is property most expensive in the US? ›
1. The One, Los Angeles, California | Most Expensive Houses. The One, which took eight years to create, has surpassed all other pricey mansions in the US to claim the top rank.
- California, 978,000.
- Texas, 322,000.
- Florida, 289,000.
- New York, 234,000.
- Washington, 140,000.
- New Jersey, 137,000.
- Colorado, 127,000.
- Arizona, 123,000.
John Malone is the largest private landowner in the United States. Malone made his fortune as a media tycoon, building the company Tele-Communications, Inc, or TCI, and acting as its CEO before selling it to AT&T for $50 billion in 1999.
What state has the cheapest housing cost? ›
1. Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average.
What month sells most houses? ›
Late spring — specifically, the month of May — is the best time to sell a house. Homes sold in May net a 12.6 percent seller premium (the amount above the home's market value), based on ATTOM's analysis of single-family home and condo sales over the past 10 years.
What style of house sells the most? ›
Colonial. Colonial-style homes have the highest resale factor when all other elements are equal. These two-story homes that often have a boxlike appearance are popular because of the amount of functional living space that they often have.
Where are the most homes sold in the US? ›
Cities where homes were sold most quickly in the U.S. 2020-2021, by number of days. Columbus, OH, Denver, CO, and Indianapolis, IN are the top three cities where homes were sold most quickly in the United States in September 2021.
Will there be a housing crisis in 2023? ›
It's also worth noting that while foreclosure rates are up year-over-year, experts do not expect to see a wave of foreclosures in 2023, even where home values are depreciating, as many homeowners have substantial equity due to progressive home price appreciation in recent years.
Will house prices go down in 2023 usa? ›
Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.
Will 2023 be a good time to buy a house? ›
Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.
What 4 sectors to buy in 2023? ›
2023 US sector outlook
- Real estate.
- Materials.
- Industrials.
- Communication. services.
Fastest growing industries within leisure and hospitality
According to the BLS fastest growing occupations report, some of the fast growing occupations within this segment for 2021-31 by percent of employment change, include: Ushers, lobby attendants, and ticket takers (40.5%)
Would prices go down in 2023? ›
The "slowing economy is likely to bring the yearly inflation rate down to around 4.0 percent by the end of 2023," Kiplinger predicted.
Where is real estate dropping in the US? ›
Some of the most popular pandemic boomtowns such as Phoenix and Seattle, plus perennially popular West Coast cities like San Jose and San Francisco, posted home price declines of more than 10% from their 2022 peaks, according to December data from mortgage technology and data provider Black Knight Inc.
What are the hottest housing markets in 2023? ›
The hottest markets included two locales from Massachusetts and Connecticut, and one each from Pennsylvania, Rhode Island, New York and New Hampshire. The Hartford, CT metro is a particular stand out as it was ranked number one in the Top Markets Forecast for 2023.
What is a bad location in real estate? ›
Commercial/industrial areas are bad locations
Unless you live downtown, commercial buildings on your block diminish residential real estate values.
Will the housing market crash in 2024? ›
With mortgage rates declining faster than expected, home prices are likely to remain mostly flat throughout 2024.
Where is the market headed in 2023? ›
Global consumer price index (CPI) inflation is on track to slow toward 3.5% in early 2023 after approaching 10% in the second half of 2022.
What would be good to invest in right now? ›
12 best investments right now
- High-yield savings accounts.
- Certificates of deposit (CDs)
- Money market funds.
- Government bonds.
- Corporate bonds.
- Mutual funds.
- Index funds.
- Exchange-traded funds (ETFs)
China and the US together make up 42 per cent ($84.8tn) of global property value alone.
Where in the world is the most expensive real estate? ›
Monaco holds on to its title as the most expensive residential market globally. However, in 2022, the strong currency rewarded the US dollar-based buyer with two extra square metres for their money compared with a year ago.
Canadian investors lead this pack, by a long shot, with nearly 9.4 million acres of U.S. land — more acreage than 44 of the top 50 foreign landowners combined, according to the report. (These people own the most land in America.)
Who has the most real estate in America? ›
The 2022 Land Report 100, compiled each year by The Land Report magazine, released its annual list of landowners who own the most acres in the United States. The nation's largest private landowners are the Emmerson family in California who own over 2.4 million acres.
What state is selling the most real estate? ›
Real Estate Housing Market Statistics 2023
| Overall Ranking | State | Available Inventory2 |
|---|
| 1 | Texas | 2 |
| 2 | California | 3 |
| 3 | New York | 4 |
| 4 | New Jersey | 13 |
37 more rowsFeb 13, 2023
In four cities in particular, supply levels are above pre-pandemic levels, the bank said, which will result in greater price declines than the national average. They include: Phoenix, Arizona; San Francisco, California; Seattle, Washington; and Austin, Texas.
What four cities will have big home prices decline? ›
By the fourth quarter of 2024, the firm expects home prices to fall 19% in Austin, 16% in Phoenix, 15% in San Francisco, and 12% in Seattle.
Where is the most expensive property in USA? ›
The One, Beverly Hills, California—$126 Million
The One, yes that one—the colossal, incomplete, 105,000-square-foot Bel Air mansion commissioned in 2012 by controversial developer Nile Niami that went into receivership in 2021 due to over $165 million in unpaid debt—was sold to the highest bidder this year.
Who owns the most homes in the world? ›
Conclusion: The Catholic Church owns the most land, far more than McDonald's and billionaire Bill Gates.
What state sells houses the fastest? ›
California leads the nation for fastest home sales, with the average property snapped up in just 52 days. Compare that to Vermont, the slowest of all 50 states, where it takes nearly half a year — 161 days on average — just to lock down a buyer.
