Key findings:
- Paris leads our prime residential forecast for 2020 with price growth of 7%. Stable economy, low interest rates, constrained prime supply, strong tenant and second home demand will underpin prime price growth.
- In second place sits Berlin and Miami where we expect to see prime price growth of 5%. Strong demand and significant regeneration will keep Berlin high in the rankings. In Miami, we expect the city to benefit from continued momentum from the State and Land Tax deduction.
- At 4%, Geneva and Sydney are both seeing prime price growth recover having dipped in recent years. Confidence has returned due to lower interest rates and limited supply. Both cities are recipients of significant transport infrastructure.
- We expect to see Madrid, Singapore and Melbourne to register price growth of 3% with international enquiries (Madrid), redirected capital outflows (Singapore) and a lower interest rate environment (Melbourne) shoring up demand.
- In LA, our forecast of 2% hides a complex picture. Below US$2m the market is active with strong demand for quality properties. Above US$10m, the market is slow.
Maggie Lee, Senior Director, Head of Residential Agency, expects the prime sales volume and demand to fall slightly due to poor market sentiment, which has led to both local sellers and buyers adopted a wait-and-see approach. We foresee Hong Kong prime prices to have a minor correction in 2020.
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