Brisbane, Chicago and London continue to be the hottest markets in the world for Hong Kong property investors, according to IP Global’s latest Global Real Estate Outlook report.
The median prices of flats in Brisbane, one of Australia’s most important metropolitan areas outside of Sydney, rose to A$367,367 (US$344,075) in the first quarter of 2014, the eighth consecutive quarterly increase.
This has largely been fuelled by the city’s population growth, which is projected to more than double by 2061, and is coming up against a drastic undersupply of housing, with the city more than 13,000 homes short of demand over the past decade, according to the report.
A surge in the technology sector is the main driver of employment and higher rents in Chicago, a city stretching its economic legs as the US recovers.
This rising demand will further improve an already good vacancy rate of just 3.8 percent given the city’s severe residential inventory shortage. Such an imbalance in supply and demand is always a good prospect for investors, the report said.
London is predicted to see an annual shortfall of 120,000 homes over the coming years. Both Prime and Outer London saw above-average, year-on-year growth of 7.5 percent and 11 percent respectively, the report said.
The general living environment and infrastructure improvements, particularly around the imminent introduction of the high-capacity Crossrail system, are making hotspots out of previously unpopular areas, it added.
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