The most expensive real estate markets in the world

By Leave a Comment

The most expensive real estate markets in the world
CNBC.comBy Bianca Schlotterbeck | CNBC.com

The number of high net worth individuals – people with more than $30 million in investable assets – is forecast to rise by 95,000 over the next decade, according to Wealth-X, a wealth intelligence firm. The result is that each year there are more people who want, and more important, can afford, luxury properties.

While demand is ever-rising, the stock of desirable locations remains virtually static, meaning capital inflows concentrate on a few hotspots, pushing prices upward.

Knight Frank found locations in Asia-Pacific tended to be the biggest gainers, but old favorites such as London continue to perform well. Meanwhile, the biggest threat to property markets is their own popularity, as the lack of local affordability can become a political issue, prompting governments to impose cooling measures. Consequently, several areas in the top 10 were subject to new regulations in 2012.

Click ahead to see the world’s top five most expensive property markets in 2012, and find out how much prices rose or fell during the year.

5. Paris

$2,350–$2,600 per sq. ft. ($25,300-$28,000 per sq. m)

ParisAverage price change in 2012: -4.0%

Experts say Paris is the city with the most potential to compete with London for foreign property investors. However, it was dealt a dual blow in 2012 by the euro zone crisis, and the new socialist government’s proposed 75 percent wealth tax. As a result, property prices fell by 4 percent.

President Francois Hollande’s proposals caused more than a few potential buyers to reconsider, and some owners to leave the country. The market saw buyer interest shift to Monaco, the Italian Riviera and Switzerland, according to Knight Frank.

Luxury_Oahu_Estates_$2M -_$3M

Luxury_Oahu_Estates_$3M -_$4M

Luxury_Oahu_Estates_$4M -_$5M

4. Geneva

$2,720–$3,010 per sq. ft. ($29,300-$32,400 per sq. m)

Average price change in 2012: -6.0%

Prime property prices fell by 6 percent in Geneva in 2012, due in part to stricter mortgage policies and uncertainty regarding a new set of laws and taxes.

However, Knight Frank said prices in Switzerland are set to rise again, as the country is forecast to see a 27 percent rise in its high net worth population between 2012 and 2022. Strict planning regulations will also curtail new developments in hotspots like Cologny in Geneva, where the house pictured is located.

Geneva’s on-going popularity is explained by its position as a global financial center, its excellent schools, safe environment and the Alpine ski resorts on its doorstep, plus Switzerland’s political stability.

 Luxury_Oahu_Estates_$5M -_$6M

 Luxury_Oahu_Estates_$6M -_$8M

 Luxury_Oahu_Estates_$8M -_&10M

3. London

$3,890–$4,300 per sq. ft. ($41,900-$46,300 per sq. m)

Average price change in 2012: +8.7%

One of the most renowned safe haven markets in the world, London property prices increased by 8.7 percent in 2012, despite a new stamp duty tax on properties worth over 2 million pounds ($3 million).

The London property market was fueled by money from continental Europe in the first half of 2012. Then as fears the euro might collapse dissipated during the summer, Europeans buyers were increasingly replaced by those from the Middle East, Asia, Africa and Russia.

The property boom looks set to continue in 2013, with the average price of prime central London property rising by 0.9 percent in February, the highest rate in 10 months, according to Knight Frank. Prices have risen every month since November 2010, and are now 55 percent above the March 2009 market low.

“London is like a separate economic zone, it is the global investment destination of choice among global investors at the moment and I think that will continue,” Richard Tice, CEO of property investment company CLS Holdings, told CNBC.

A recent Vanity Fair article on the owners of London apartments, such as the 6,000 ($9000) per sq. ft. one pictured here, read like a cross-section of some of the world’s richest people, including Arab sheikhs, Nigerian oil billionaires, and supermodel Naomi Campbell’s Russian oligarch boyfriend, Vladislav Doronin.

 Luxury_Oahu_Honolulu_Condos

2. Hong Kong

$4,570–$5,050 per sq. ft. ($49,200-$54,400 per sq. m)

Average price change in 2012: +8.7%

The Hong Kong property market is so hot the government is fighting to cool it down. Despite new restrictions – notably an extra 15 percent stamp duty for foreign buyers, including those from mainland China – the rate of price increase almost doubled in 2012 to 8.7 percent, up from 4.6 percent in 2011.

A million dollars will only get you about 200 square feet (19 square meters) in Hong Kong, with a villa on The Peak, such as the one pictured here, costing considerably more.

Knight Frank put the city’s popularity down to strong demand from both local and international owners, and investors who see the city as an international financial hub with a strategic geographic location and a liberalized economy.

Nevertheless, the government cooling measures are expected to impact property prices and Knight Frank forecast prices will move up or down by 5 percent.

1. Monaco

$5,350–$5,920 per sq. ft. ($57,600–$63,700 per sq. m)

Average price change in 2012: 2.0%

The principality of Monaco has a reputation for being a playground for the super-rich. With only 36,000 people, it is renowned for its casinos, yacht-filled marinas and the Formula One Grand Prix.

The price of its property reflects this. A million dollars will buy you only about 170 square feet (16 square meters) in prime central Monaco, with housing developments such as the Tour Odeon, pictured here, going for roughly €60 ($77.90) per sq. m.

Top-end real estate in Monaco has benefited from a shift away from Paris, with prices up 2 percent in 2012 after France proposed a 75 percent top rate of tax. In addition, neither individuals nor companies resident in Monaco pay income or business tax, making it likely to remain a favorite destination for investors looking for safe haven assets.

Luxury_Oahu_Estates_2M_3M

 Luxury_Oahu_Estates_3M_4M

 Luxury_Oahu_Estates_4M_5M

 Luxury_Oahu_Estates_5M_6M

 Luxury_Oahu_Estates_6M_8M

 Luxury_Oahu_Estates_8M_10M

 Luxury_Oahu_Honolulu_Condos

 

Units in Ritz-Carlton Waikiki project priced from ‘$500,000s to over $15M’

By Leave a Comment

Units in Ritz-Carlton Waikiki project priced from ‘$500,000s to over $15M’

Janis L. Magin, Managing Editor of Digital Content- Pacific Business News  |  Mar 20, 2013, 4:45pm HST

This updated rendering shows some of the design revisions developer Pacrep LLC has made to the 2121 Kuhio condominium hotel project, which is being marketed as The Ritz-Carlton Residences, Waikiki Beach. Courtesy Pacrep LLC

This updated rendering shows some of the design revisions developer Pacrep LLC has made to the 2121 Kuhio condominium hotel project, which is being marketed as The Ritz-Carlton Residences, Waikiki Beach.
Courtesy Pacrep LLC

Some units in a proposed 37-story Waikiki condominium hotel tower that will be branded under The Ritz-Carlton Residences flag will go on the market this spring for more than $15 million, one of the highest asking prices ever for a new condominium unit in Hawaii.

The website for The Ritz-Carlton Residences, Waikiki Beach, says prices for the units, which range from a 401-square-foot studio on one of the lower floors to a 1,790-square-foot three-bedroom, three-bath unit on one of the top floors to a top-floor penthouse, start “from the $500,000s to over $15 million.”

In comparison, the penthouse units at the ultra-luxury One Ala Moana condo being developed atop the parking garage next to the Nordstrom department store behind Ala Moana Center by a partnership that includes the Howard Hughes Corp. (NYSE: HHC) are being marketed for around $9 million.

That building has drawn interest from some Mainland billionaires, including Mark Zuckerberg, founder and CEO of Facebook Inc. (Nasdaq: FB).

The sales office for the Ritz-Carlton project will open in mid-April in the Luxury Row retail complex on Kalakaua Avenue adjacent to the project’s site, which is also home to luxury retailers Tiffany & Co., Chanel, Gucci, Yves Saint Laurent, Coach, Tod’s, Bottega Veneta and Hugo Boss.

California-based Pacrep LLC, which is developing the Ritz-Carlton project that’s also known as 2121 Kuhio, expects to start construction on the building later this year, with a completion targeted for late 2015 or early 2016, Jason Grosfeld, principal of Pacrep LLC, told PBN.

Pacrep recently secured approval for a Waikiki Special District permit, although the Honolulu Department of Planning and Permitting attached conditions to the approval, including design revisions.

The developer’s current design already incorporates many of the revisions requested by the city, including an articulation to the building’s facade, Grosfeld said. Grosfeld is also a principal in Irongate, which developed the Trump International Hotel & Tower Waikiki Beach Walk and the Watermark Waikiki.

“We’ve already been addressing and satisfying some of these comments,” he said.

Grosfeld said Pacrep will apply for building permits once the design is completed.

Grosfeld is confident there will be strong demand for the units.

“We’ve had thousands of people contact us to get more information about the project,” he said. “We have hundreds of people who want to buy right now.”
 

Oahu_Luxury_Condo_1M_2M

Oahu_Luxury_Condo_2M_3M

Oahu_Luxury_Condo_3M_4M

Oahu_Luxury_Condo_4M_plus

Howard Hughes Corp. expects to make $66M profit from luxury Hawaii condo ONE Ala Moana

By Leave a Comment

One_Ala_Moana_View-12-Nordstrom-01_press

Howard Hughes Corp. CEO David Weinreb told shareholders Tuesday that the developer expects to make a profit of $66 million from the ultra-luxury ONE Ala Moana condominium tower being built next to Nordstrom at Ala Moana Center, seen in this rendering.

Howard Hughes Corp. expects to make $66M profit from luxury Hawaii condo ONE Ala Moana

Janis L. Magin Managing Editor of Digital Content- Pacific Business News
Mar 5, 2013, 12:57pm HST

The Howard Hughes Corp. expects to make a profit of $66 million from the ONE Ala Moana ultra-luxury condominium tower under construction behind Hawaii’s Ala Moana Center shopping mall, the developer’s CEO told shareholders on Tuesday.

Howard Hughes Corp. (NYSE: HHC) CEO David Weinreb said in a letter to shareholders that the units at the building, which is being developed in a partnership with Hawaii developers the Kobayashi Group and The MacNaughton Group, sold out for an average of $1,170 per square foot.

The cost of the project, including the value of Howard Hughes’ air rights, is about $900 per square foot, which means the developer expects to make a profit of $66 million, Weinreb said.

Mark Zuckerberg, founder, chairman and CEO of Facebook Inc. (Nasdaq: FB), is reportedly one of the buyers of several multimillion-dollar units in the 23-story ONE Ala Moana project, which is being built atop a parking garage adjacent to the Nordstrom department store.

Weinreb also told shareholders that he expects condo units in Howard Hughes’ Ward Village master plan will command premium prices, based on resale values of another ocean-view condo in Honolulu’s Kakaako neighborhood.

The company expects Ward Village to “capture premiums” in the same way buyers have paid premium prices to live in the company’s Summerlin development near Las Vegas or The Woodlands near Houston.

Weinreb noted that the Ward properties it had acquired from General Growth Properties (NYSE: GGP) generate about $23 million a year in net operating income. Howard Hughes has plans to build about 500 market-rate units and at least 125 work-force units as part of the Ward Village master plan.

“While we have not yet determined pricing for our first phase towers, market data suggest that comparable existing ‘front row’ product with unobstructed ocean views resold in 2012 at an average price of approximately $1,400 per square foot,” Weinreb wrote. “Hokua, which is the condominium tower adjacent to Ward, resells at the highest average price per foot of any condominium tower in Honolulu, approximately $1,400 per square foot.”

Hokua was also developed by a partnership of the Kobayashi Group and The MacNaughton Group, along with A&B properties, the real estate arm of Alexander & Baldwin Inc. (NYSE: ALEX).

Oahu_Luxury_Condo_1M_2M

Oahu_Luxury_Condo_2M_3M

Oahu_Luxury_Condo_3M_4M

Oahu_Luxury_Condo_4M_plus

Luxury High-Rise Living at Capitol Place – 1200 Queen Emma St., Honolulu, HI 96813

By Leave a Comment

About Capitol Place – 1200 Queen Emma Street, Honolulu, HI  96813

Honolulu has long been the urban core of Oahu, drawing people from around the island with its high energy and close proximity to everything. Capitol Place, a distinctive residential building on the edge of the Capitol District provides unique luxury high-rise homes with a lifestyle to match that offers convenience, first-class services and amenities, in a vibrant neighborhood.

It’s convenient city living at the top of Bishop and Alakea Streets with incredible mountain, ocean and town views. Residences are a blend of upscale, contemporary one-, two- and three-bedroom condominium homes with incomparable hospitality services and amenities like that of a luxury hotel or private club.

Wireless connectivity is conveniently made available throughout each residence and all common areas. State-of-the-art Viking appliances adorn the sleek kitchen layout, complemented by beautiful granite countertops.

Here at Capitol Place, you will connect to a new way of life. A new way of doing things. We invite you to be a part of our community. Come by today and experience how the wide range of amenities and services provide residents with a home they love to live in.

Currently Available Capitol Place Units at 1200 Queen Emma, Honolulu, HI  96813

Amenities

It’s nice when you live in a place that has everything. Capitol Place is that place. It has all the state-of-the-art amenities that you want, from entertainment to exercise equipment.

Workout, party, walk the dog, barbeque, listen to music in the soundproof music room, or relax with a movie in the media room without ever having to leave the building. It’s all right here. How’s that for convenient?

  • Swimming pool
  • Jacuzzi
  • Recreation room with kitchenette
  • Yoga/Pilates studio
  • Theater/media room
  • Children’s play area
  • Private outdoor barbeque areas
  • Dog park
  • Fitness center
  • Music room
  • Wired for home network

Luxury Services

At Capitol Place, you will experience a service culture, where residents will enjoy the same dedication to comfort and excellent attention to detail found in many Hawaii hotels.

Residential Specialists will greet you with warm aloha and the following menu of personalized services:

  • 24-Hour Front Desk Residential Specialist
  • Bell Service
  • Car Service (Battery charge cables, flat tire assistance)
  • Club Room
  • Ice chest set up
  • Tea cart delivery
  • Massage Room
  • Set up
  • Movie Theater
  • Room set up
  • DVD/Movie set up
  • Ice chest set up
  • Tea cart delivery
  • Personal Residential Delivery for:
  • Daily newspapers
  • Parcel/small packages/floral arrangements
  • Dry Cleaning – drop off and delivery
  • Taxi and Limo Service Arrangements
  • Terrace Cabana Use Preparation
  • Ice chest set up
  • Gas grill prep and clean up
  • Tea cart delivery to residence
  • Trash and recycling
  • Will Call Service

Currently Available Capitol Place Units at 1200 Queen Emma, Honolulu, HI  96813

Capitol Place Residential Specialists will also be available to provide residents with information regarding the following “fee for service” providers:

  •     Caterers
  •     Cultural Centers – Downtown
  •     Entertainers
  •     Event “Butler” Services
  •     Florists and Lei Shops
  •     Galleries – Downtown
  •     Housekeeping Services
  •     In-Home Dining
  •     Interior Design Services
  •     Moving Companies
  •     Notary Public and Business Services
  •     Personal Shopping Services
  •     Personal Trainers
  •     Pet Care
  •     Restaurants – Downtown
  •     Shoe Repair
  •     Spa and Massage Therapists
  •     Vehicle Detailing and Maintenance

Request more information or a private showing

[contact-form subject=”More information about Capitol Place” to=”[email protected]”] [contact-field label=”Name” type=”name” required=”true” /] [contact-field label=”Email” type=”email” required=”true” /] [contact-field label=”Website” type=”url” /] [contact-field label=”Comment” type=”textarea” required=”true” /] [/contact-form]

 

This advertisement is not an offering. No offering can be made except pursuant to an effective Preliminary or Final Public Report filed with the State of Hawaii Real Estate Commission. Every detail described, or illustrated or shown is subject to change at any time without notice at the sole discretion of the Developer, including, without limitation, the sales prices, apartment numbers, unit types, components, finishes, dimensions, sizes, designs, floor plans and building heights. All square footages approximate — net living area may vary as to unit location in the building. Units vary. Please refer to the Condominium Public Report for project and unit specifications for a particular apartment.