Cape Town and Shanghai look poised to have the most prosperous prime real estate markets in 2021, according to the latest global forecast. The cities are forecast to see prime prices grow 5% next year, the real estate agency and property consultant said. Both metropolises are expected to see demand and sales volumes for prime homes “rise slightly,” but supply will remain the same in Cape Town, and fall slightly in Shanghai.
Next year, 20 of the 22 cities analyzed in the report are expected to see prices remain flat or increase, with values set to rise 2% across the board, the report said. Despite the financial turmoil that has resulted from the coronavirus pandemic, prime property markets have been “largely resilient,” underpinned by stimulus packages and low borrowing costs.
In London, where buyers are currently benefiting from a stamp duty holiday, which curbs the tax on home sales up to £500,000 (US$666,427), prices are expected to rise 4%, helped along by the tax break plus pent-up demand and firm market fundamentals. The city is “overdue a period of [property] price growth,” said in the report. “It will also benefit from a wave of international demand as travel and quarantine rules are relaxed.” In Vancouver and Miami, a jump in sales activity “as buyers reconsider their property requirements in light of the pandemic,” looks poised to push prices 3% and 4% in 2021, respectively.
In Monaco, where prices are set to edge up 3% next year, “there has been strong sales interest, but the top end of the market has been affected by many international buyers not being able to travel. Prices in New York City, which at this time last year were predicted to slump 3%, are expected to remain flat in 2021 due to excess inventory being bought up by buyers who are “recognizing its relative value,” the report said.
Article source: Mansion Global