Most expensive cities 2008

[luce.rocks]

Not sure where Global Property Guide gets its figures, or if this has already been posted somewhere, but here are the most expensive cities for real estate in 2008:

Rank City, Country Price
------- ------------------------- --------
1 London (Prime), United Kingdom 24,250
2 Upper Manhattan, New York, USA 15,933
3 Moscow, Russia 15,531
4 London (Other Luxury), UK 15,202
5 Paris, France 13,826
6 Hong Kong 12,599
7 Tokyo, Japan 11,870
8 Singapore 11,800
9 Mumbai, India 10,222
10 Barcelona, Spain 9,871
11 Geneva, Switzerland 7,534
12 Zurich, Switzerland 7,376
13 Sydney, Australia 7,085
14 Madrid, Spain 7,021
15 Turks and Caicos Islands 5,724
16 Tel Aviv, Israel 5,021
17 Toronto, Canada 4,737
18 Auckland, New Zealand 4,438
19 Warsaw, Poland 4,383
20 Cayman Islands 4,234
21 Dubai, United Arab Emirates 4,066
22 Bahamas 3,998
23 Montreal, Canada 3,779
24 Munich, Germany 3,613
25 Saint Petersburg, Russia 3,417
26 Shanghai, China 3,318
27 Trinidad and Tobago 3,174
28 Athens, Greece 3,170
29 Frankfurt, Germany 2,843
30 Bangkok, Thailand 2,819
31 Cape Town, South Africa 2,784
32 Berlin, Germany 2,462
33 Beijing, China 2,282
34 New Delhi, India 2,107
35 Sofia, Bulgaria 2,032
36 Marrakech, Morocco 1,973
37 Manila, Philippines 1,969
38 Istanbul, Turkey 1,867
39 Panama City, Panama 1,783
40 Kuala Lumpur, Malaysia 1,400
41 Johannesburg, South Africa 1,376
42 Amman, Jordan 1,261
43 San Jose, Costa Rica 1,255
44 Beirut, Lebanon 1,237
45 Jakarta, Indonesia 1,068
46 Bangalore, India 980
47 Cairo, Egypt 569

http://www.photius.com/rankings/most_expensive_cities_real_estate_2008.html

I'm not sure how accurately that reflects Sydney prices, because all the figures are for apartments, but I noticed three things:

1. Sydney isn't even in the top 10.
2. The average price for the top 4 spots are 2-3 times Sydney prices.
3. No other Aussie city makes the list.

Now, I know there's a difference between price and affordability and that just giving averages for prices of apartments doesn't factor in who earns what, and how affordable those apartmetns are for the people living in those cities. But surely the relationship between price and affordability is at least close enough that we can look at that list and ask whether all the talk of affordability and grossly over-valued house prices in Sydney, and Australia in general, is a bit hyperbolic? Especially considering the cities in the top 4 spots all have prices 2-3 times that of Sydney.

 

[MichaelW]

I'm not sure how accurately that reflects Sydney prices, because all the figures are for apartments, but I noticed three things:

1. Sydney isn't even in the top 10.

Don't worry, we'll get there!

I see property prices as a good proxy for the desirability and economic strength of a city. The higher the price, the more desirable the property market and the more disposable income is available to service property purchases.

Sydney is a great city and I hope one day we will be number 1 on the global property price index. Would be great to beat London and Manhattan, but I think we're a little way off that yet unfortunately...

Cheers,
Michael

 

[Mr. Fabulous]

Sydney will never be a player on the global property price wheel of fortune, mostly for these reasons:

- too much available land (London is a capital city in a country with, what? 3 or 4 times Australia's population in a country the size of Tasmania and Manhattan is a tiny island)
- doesn't rate as being a place where people would like to live (as opposed to say, London and New York - how many people from O/S say 'oh, I'd really love to move to Sydney' as opposed to wanting to move to London and NY)
- population doesn't even come remotely close to the supply/demand requirements to get Sydney up there.

Anyone that thinks that Sydney even has a chance is living in La La Land. Also, how on earth did Auckland rate above Dubai?

Mark

 

[vbplease]

I think the wealthiest people in Monaco, Lodon etc take wealth to a whole new level.. comparing the prices of units there to any Australian cities - to gauge affordability is kinda meaningless..

Monaco 24,900 euro/sq m
Prime London 14,522 eruo/sq m

 

[MichaelW]

I think the wealthiest people in Monaco, Lodon etc take wealth to a whole new level.. comparing the prices of units there to any Australian cities - to gauge affordability is kinda meaningless..

Monaco 24,900 euro/sq m
Prime London 14,522 eruo/sq m

How is it meaningless? I think that's small town (or small country) thinking. You've got self limiting glasses on when you're looking in your own backyard.

Sydney is Australia's premier city and, with all due respect to Mark, I think it rates on the global stage. I've spoken to a lot of Londoners in my time there who dream about moving to Sydney. And, if you project forward 10 years, China will be the number 1 economy in the world, and Australia a much more significant player in the Western World due to our trading ties and geographical proximity. I think Sydney will overtake a couple of big US names in the next decade.

Now, if only our economy was to take off nationally then all the high flyers in Sydney would make a killing. I agree we're not as land locked as Hong Kong, Manhattan or other major centres which might be against us on a price comparison basis. But I still think there's heaps of potential upside for Australia's global city to run up that ladder a bit.

Just throwing it out there. I can see a Sydney median of $2M in a decade or two's time with some properties fetching $100M. There's already some approaching the $60M mark if my memory serves. Of course, urban sprawl will mean a lot of properties fetching a lot less, but prime stuff has so much upside potential.

Cheers,
Michael

 

[vbplease]

Michael,
Small town glasses on?? maybe I've been watching too much mtv

I think when the mega rich people makes their billions they buy their apartment in Monaco, London, or New York.. not Sydney. I'm talking about Russian oil barons that buy football teams for fun. Our equivilent would be mining company owners or the Kerry Packers, not too many really? London and Monaco are full of these people.

 

[Mr. Fabulous]

I think Sydney will overtake a couple of big US names in the next decade.

NY is the only big US city above Australia in the list. Australia is only ever going to be a bit player on the world stage, whether you like it or not. People with money - serious money - do not (or rarely, at least) consider Sydney as an option for somewhere to live.

These guys run huge businesses and living in Sydney is more a pain in the bum than an advantage. Just because China is going to become the world's biggest economy, doesn't mean squat for Sydney. I mean, we supply them with resources, whoop dee doo! That in itself is not going to make Sydney a place that the wealthy will want to move to.

Mark

 

[tiger]

I'm surprised to see some incredibly poor countries ranking there above some of the major cities in Australia, US, Canada and other wealthy countries.