Miami’s prime residential property market would outperform all other cities in the world for 2022, according to a new report.
The forecast for this year bodes well for the city in South Florida. Prime residential property prices in Miami would increase by 10%, although it’s lower than an estimated 22% growth in 2021.
The metro area slightly overtook other global cities because of the state’s low taxes and appealing coastal lifestyle.
Coastal Lifestyle Amid A Pandemic Uplifted Demand
Luxury residential sales worth at least $10 million in South Florida rose to 394 properties from December 2020 to November 2021. The sales volume for the luxury properties amounted to $6.9 billion.
Financial and technology magnates have bought waterfront properties due to the allure of a coastal lifestyle during a pandemic.
Underlying factors such as low mortgage rates and remote work also influenced Miami’s strong market activity.
As more buyers could stretch their dollars and choose where to live, the demand has outpaced the available supply.
Top 10 Cities In Asia-Pacific, Europe And The US
The U.S. accounted for three cities with Los Angeles and New York joining Miami in the top 10 list. European cities on the same roster comprised Geneva, London and Madrid.
The Asia-Pacific region completed the roster with the inclusion of Auckland, Hong Kong, Singapore and Sydney.
Forecast Growth For Top 10 Global Cities In 2022
- Miami (10%)
- Sydney (9%)
- Los Angeles (8%)
- Auckland (7%)
- London (7%)
- Geneva (6%)
- Madrid (6%)
- Singapore (5%)
- New York City (5%)
- Hong Kong (5%)
The top 10 cities’ estimated price growth reached 6.8% on average. According to the forecast, only four out of the top 10 cities registered higher price growth based on a year-over-year comparison.
Sydney’s luxury home prices would increase 9% in 2022, slightly below the estimated 12% appreciation in 2021.
In Los Angeles, luxury home prices rose approximately 16% in 2021. A lower estimated price growth reflected the forecast’s moderate outlook in the city.
Luxury property investors in Auckland should also expect a more modest price hike. The forecast growth fell to 7%, less than half of the estimated 20% price appreciation in 2021.
New Zealand’s stricter rules for residential property transactions among non-residents may have affected the growth trend.
Prime property prices in London would increase 7% in 2022 from the estimated 2% price growth in 2021. The forecast growth would happen as more ultra-high-net-worth individuals plan to buy properties worth over GBP 10 million (US $13.4 million).
In Madrid, the forecast growth of 6% from the estimated 3% increase in 2021 signals a return to pre-pandemic annual performance.
Singapore and New York City recorded estimated price growth of 3% and 1% in 2021, respectively. The two markets’ forecast price growth of 5% reflected two primary factors:
- Fewer luxury properties in Singapore’s Core Central Region
- Rebounding luxury property market in New York City
A sustained strength of the greenback in 2022 could further propel a recovering market in New York City, according to the forecast.
Shorter Days On Market
Dale Sorensen Real Estate, the leading broker in Florida, regularly publishes market statistics for buyers’ guidance.
For example, property listings in West Miami disappeared after 89 days on average as of mid-January 2022. The average days-on-market in mid-December reached 92 days.
The number of properties for sale also declined from 49 to 44 during the same comparable period. Market observers believe that a wider resumption of international travel could further shorten the days-on-market average.
For this reason, prospective homebuyers should decide as soon as possible while the current lack of supply doesn’t become too chronic.
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