Overall, global leisure properties, which are located outside the urban zones of our 10 world cities, saw small falls in value in the first half of 2012. On average, values were down -1.3% and have continued to underperform the global centres.
However, the results were mixed, with winners as well as losers. There were small price falls recorded for leisure properties in Singapore, Sydney, Mumbai and Tokyo. But leisure property owned by people who are based in Moscow, New York, Hong Kong and London saw some modest price rises.
The sharpest price falls were for French leisure property
(St Tropez/Cap Ferrat), which was down -10% over the period. Like the rest of France, this region has suffered from new and proposed taxes on the wealthy and their second homes. Nonetheless, property here remains by far the most expensive of any of our leisure destinations.
Moscow’s leisure property saw the largest price rise of the group over the first half of 2012, although this was relatively modest at 1.7%. These properties operate very much as part of the wider Moscow city market as they are in much closer physical proximity (though not necessarily travel time) to the urban core. They are also often the main family home of wealthy people, most of whom will own an apartment in the city.
Despite the fall in prices, Cap Ferrat and St Tropez clearly remain the ultimate leisure property destinations. Properties in these locations command prices that are a third higher than the nearest most expensive homes (those in the countryside surrounding Moscow).
Easily accessible from Nice and Monaco, Cap Ferrat’s tranquillity, as well as the warm climate, ensures that it remains a firm favourite with the super-rich. Properties here typically have a private beach and are very carefully designed to maximise privacy.
Leisure property in Asia-Pacific (Japan excluded) is most notable for its level of affordability. Properties in Phuket, Krabi and Penang are a fraction of the price of the most popular European and North American destinations.
As these are more recently established markets, exclusivity and prices are now building. Given the weight of wealth generation in the Asian-Pacific region, the long-term prospects for these resorts look positive.