_Super-prime sales resilient in 2020 due to domestic demand and the search for space
At a glance:
London took the title of largest super-prime market, with US$3.7 billion transacted across 201 sales. Out of the usual top markets, the UK capital saw transactions rise by 3%, while Hong Kong and New York saw theirs fall by 27% and 48% respectively - more here in the recently launched New York Focus Report 2021.
The small reduction in super-prime transactions despite Covid-19 restrictions has surprised forecasters; super-prime markets are often dominated by international buyers, so a largely flat market for the year demonstrates the scope to which the pandemic has caused domestic buyers to reassess their needs, often seeking out larger properties or homes closer to large, open spaces.
Domestic buyers accounted for a third of all activity in London’s £10m+ market, up from 12% a year earlier. European buyers were also more prevalent due to the relative ease with which they could reach the city.
It is also a reminder that the world’s population of ultra-high-net worth individuals (UHNWIs) swelled during the year as huge fiscal stimulus and rock-bottom rates fuelled asset prices.
A fifth of UHNWIs purchased a home in 2020, according to our Attitudes Survey in The Wealth Report 2021, which quizzed more than 600 private bankers, wealth advisors and family offices across 50 countries and territories.
There was significant variation in performance depending on the location and characteristics of cities. Sales rose in nine of the 12 markets we track with buyers spending US$18.9 billion across 1,066 sales.