In a rising-price environment, affordability is a growing concern. But not for everyone. Typically, when a market has high prices it’s because demand outstrips supply. Some markets are naturally restricted for expansion, such as San Francisco, New York City, Aspen, Vail, and Miami. Even in Anchorage, in the largest state in the country, land is becoming scarce, restricted by both geography and a shrinking supply of privately-owned, non-government land. Las Vegas faces the same issue.
Then there are the global cities that make most U.S. markets look like lightweights when it comes to price. Knight Frank, which brokers and manages residential and commercial properties across the U.K. and offers global market research, has created a list of the 10 most expensive cities in which to buy a residential property. To compare costs, Knight Frank estimated how many square meters $US 1million would purchase. The following table shows that along with the cost per square foot conversion.
Another look at the expensive residential markets is from the Global Property Guide.
Despite differing methodologies, these two list are relatively similar. The Global Property Guide’s data are based on a typical 120 square meter apartment.
The Knight Frank analysis was taken from the Daily Telegraph at http://www.telegraph.co.uk/finance/property/international/10675352/The-worlds-10-most-expensive-cities-to-buy-property.html?frame=2763563
To see the Global Property Guide’s data along with rankings of the 93 most expensive residential markets click http://www.globalpropertyguide.com/most-expensive-cities On this site you can click on the price per square meter and it details prices at differing apartment sizes.
While I am certain there are fixer-uppers in these markets at lower prices, it’s all about the interaction of supply and demand, coupled with effective purchasing power (actually having the ability to buy rather just wish).
By the way, there are 10.764 square feet per square meter.
Ted