Despite Beijing's efforts to rein in prices and slow development in the
last three years, China remains the hottest residential real estate
market in the world, according to the most recent data from Knight
Frank, a 115-year-old, London-based consulting firm. Newmark Knight
Frank is the firm's North American affiliate in New York City.
The rankings are based on housing price increases from fourth quarter 2006 until the last quarter of 2011.
China
Housing prices in major cities Beijing and Shanghai have surged by over 110 percent in the past five years as the world's second biggest economy experiences rapid growth.
Knight Frank data show a home in Shanghai's prime areas costs $19,400 per square meter or $1,800 per square foot in the fourth quarter of 2011. In Beijing, the same home costs an average $17,400 per square meter or $1,600 per square foot.
The years of tightening measures China's government started showing results in the second half of last year. Home prices marked a fifth straight month-on-month drop to 0.1 percent in February.
China's average home prices are expected to fall between 10 percent and 20 percent in 2012, according to a recent Reuters survey.
The country's property developers, meanwhile, have enjoyed rising sales this year. Vanke, China's biggest developer by sales, reported March sales rising 24 percent year on year -- the second-straight month of gains.
China's largest developer by market value, China Land Overseas, saw February sales hit $1.7 billion, up 209 percent from the same month a year ago.
Hong Kong
As a major global financial center, the city overtook London last year as the world's most expensive office rental market, according to Knight Frank.
In the fourth quarter of 2011, the average price of a home in prime areas was about $47,500 per square meter or $4,400 per square feet -- the fourth-highest in the world.
Protests from locals over high prices and foreign buying led the Hong Kong Monetary Authority to introduce a measure last year that requires buyers whose principal incomes are not in Hong Kong to pay an extra 10 percent in down payment when buying a house.
All this has led to a slowdown in recent months. Housing prices grew only 11.3 percent in 2011, compared with 20.1 percent in 2010, according to Knight Frank.
And year-to-date prices have grown by a more moderate 6.7 percent , according to market estimates. Sales of luxury homes valued over $1.29 million also decreased 23.6 percent in February following a 17.4 percent fall in January, according to Knight Frank.
Israel
Knight Frank research found high home prices in Israel led to a series of protests in 2011 with demonstrators asking the government to intervene to cool the market. Thousands of protesters made headlines last July to voice concerns over a housing shortage and high rentals. The demonstrations seem to have had an effect on property prices. They fell 1.2% in 2011.
However, after an interest rate cut from 3.25% to 2.5% in February, there appears to be resurgence in property demand, with new mortgages issued by banks jumping by more than 14% in March compared to the two pervious months.
Singapore
Singapore is the most expensive real estate market in Southeast Asia. The average price of a prime property in the city-state was $25,600 per square meter or $2,600 per square foot in the fourth quarter of 2011, according to Knight Frank.
The country also ranked as the third most expensive city to rent high-end property in Asia last year after Hong Kong and Tokyo, according to research firm ECA International. Low interest rates and a wave of immigration in recent years have boosted demand for homes.
A regional financial hub, Singapore has a large foreign population that's helping to drive home prices. Foreigners make up more than one-third of Singapore's 5.2 million people and accounted for 18 percent of new homes sold in the third quarter of 2011, according to Citigroup.
Among foreign buyers, mainland Chinese are the largest group, accounting for 30.6 percent of foreign sales in the third quarter of 2011, according to real estate firm DTZ.
Colombia
Colombia is the only South American country to make the list.
Rapid economic expansion, with GDP growth of nearly 6 percent in 2011 - its highest in four years - has led to an increase in house buying, especially among the growing middle-class.
Plus a decade-long military offensive against illegal armed groups has made it safer to do business in the country, attracting a flood of foreign investment, which has in turn boosted property prices. Foreign direct investment jumped more than 30 percent in the first quarter of 2012 to $4.2 billion compared to the period last year.
Property prices went up 3.2 percent year on year in 2011, while new home sales were up 19 percent in the first half of last year compared to the period a year earlier, according to government figures.
The rankings are based on housing price increases from fourth quarter 2006 until the last quarter of 2011.
China
Housing prices in major cities Beijing and Shanghai have surged by over 110 percent in the past five years as the world's second biggest economy experiences rapid growth.
Knight Frank data show a home in Shanghai's prime areas costs $19,400 per square meter or $1,800 per square foot in the fourth quarter of 2011. In Beijing, the same home costs an average $17,400 per square meter or $1,600 per square foot.
The years of tightening measures China's government started showing results in the second half of last year. Home prices marked a fifth straight month-on-month drop to 0.1 percent in February.
China's average home prices are expected to fall between 10 percent and 20 percent in 2012, according to a recent Reuters survey.
The country's property developers, meanwhile, have enjoyed rising sales this year. Vanke, China's biggest developer by sales, reported March sales rising 24 percent year on year -- the second-straight month of gains.
China's largest developer by market value, China Land Overseas, saw February sales hit $1.7 billion, up 209 percent from the same month a year ago.
Hong Kong
As a major global financial center, the city overtook London last year as the world's most expensive office rental market, according to Knight Frank.
In the fourth quarter of 2011, the average price of a home in prime areas was about $47,500 per square meter or $4,400 per square feet -- the fourth-highest in the world.
Protests from locals over high prices and foreign buying led the Hong Kong Monetary Authority to introduce a measure last year that requires buyers whose principal incomes are not in Hong Kong to pay an extra 10 percent in down payment when buying a house.
All this has led to a slowdown in recent months. Housing prices grew only 11.3 percent in 2011, compared with 20.1 percent in 2010, according to Knight Frank.
And year-to-date prices have grown by a more moderate 6.7 percent , according to market estimates. Sales of luxury homes valued over $1.29 million also decreased 23.6 percent in February following a 17.4 percent fall in January, according to Knight Frank.
Israel
Knight Frank research found high home prices in Israel led to a series of protests in 2011 with demonstrators asking the government to intervene to cool the market. Thousands of protesters made headlines last July to voice concerns over a housing shortage and high rentals. The demonstrations seem to have had an effect on property prices. They fell 1.2% in 2011.
However, after an interest rate cut from 3.25% to 2.5% in February, there appears to be resurgence in property demand, with new mortgages issued by banks jumping by more than 14% in March compared to the two pervious months.
Singapore
Singapore is the most expensive real estate market in Southeast Asia. The average price of a prime property in the city-state was $25,600 per square meter or $2,600 per square foot in the fourth quarter of 2011, according to Knight Frank.
The country also ranked as the third most expensive city to rent high-end property in Asia last year after Hong Kong and Tokyo, according to research firm ECA International. Low interest rates and a wave of immigration in recent years have boosted demand for homes.
A regional financial hub, Singapore has a large foreign population that's helping to drive home prices. Foreigners make up more than one-third of Singapore's 5.2 million people and accounted for 18 percent of new homes sold in the third quarter of 2011, according to Citigroup.
Among foreign buyers, mainland Chinese are the largest group, accounting for 30.6 percent of foreign sales in the third quarter of 2011, according to real estate firm DTZ.
Colombia
Colombia is the only South American country to make the list.
Rapid economic expansion, with GDP growth of nearly 6 percent in 2011 - its highest in four years - has led to an increase in house buying, especially among the growing middle-class.
Plus a decade-long military offensive against illegal armed groups has made it safer to do business in the country, attracting a flood of foreign investment, which has in turn boosted property prices. Foreign direct investment jumped more than 30 percent in the first quarter of 2012 to $4.2 billion compared to the period last year.
Property prices went up 3.2 percent year on year in 2011, while new home sales were up 19 percent in the first half of last year compared to the period a year earlier, according to government figures.
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