_Global Forecast 2019: Risks, Opportunities and trends to monitor

Market fundamentals such as demand and supply indicators as well as political stability, quality of life and accessibility are on the basic checklist for most prime buyers. Below, we go one step further to highlight some of the trends we think deserve closer attention over the next year: 

1 Follow the tech

The knowledge economy – universities, start-up industries and technology parks – will be key drivers of future growth. 

2 USD all powerful?

Although USD-denominated buyers are enjoying stronger purchasing power abroad, we’ve yet to see a strong flow of outbound capital into prime residential markets. 2019 may be the year USD buyers increase their market share, or it may be we see it being invested closer to home. 

3 Demographics dictate

In established western markets, non-traditional real estate sectors will be under the spotlight – student accommodation, retirement living and buy-to-rent will outperform the wider market. 

4 Detachment of ultra-prime

We confirm the detachment of the US$25m+ market in our Ultra-Prime Report. Sales accounted for 155 transactions in 2017 across, up 13% year-on-year. We expect more cities to enter this select club with San Francisco, Chicago, Dallas, Beijing and Shanghai all vying for contention. 

5 Greater synchronicity

The property cycles of first-tier world cities are more in sync as their financial markets have become more integrated. Low interest rates, greater institutional investment and rising wealth have left their mark on most prime markets but it also means policy responses in one market may have broader ramifications globally. 

6 Multi-tiered markets

A city’s housing market is far from homogenous. Whether driven by policy, supply or demand, we are seeing stronger mainstream sectors in some cities (Hong Kong, London) and stronger prime markets in others (Sydney). The divergent performance of different market tiers will become more evident as affordability constraints deepen. 

Read the full report here

For further information please contact Kate Everett-Allen