Global billionaires have weathered the latest economic uncertainty better than many. New billionaires continue to be created in emerging markets, led by China. As a consequence, the value of billionaire property held up better than the SEU, recording growth of 3.6% in the second half of 2011.

The notable exception is Hong Kong, where billionaire property fell by -5.9%. The city’s red-hot ultra-prime districts, The Peak and Southside, have cooled following price growth of 118% between December 2008 and June 2011. Buyers are exercising caution ahead of anticipated price falls, and are seeking discounts on asking price. Such measures were unheard of just six months ago, and may indicate the market to come.

By contrast, safe-haven cities like New York performed particularly well. The value of billionaire property in New York increased by
17% in the final half of 2011, fuelled by super-wealthy overseas buyers from Russia, China, Brazil and Argentina seeking condominium investments.

London and Paris also saw price growth, with increases of 4% for this type of property. London’s super-prime market saw record sales in excess of £1.9 billion in 2011.

Taken from
Insights: World Cities Review Spring 2012