The Everywhere Rally
Residential investment is now 14.4% above its pre-pandemic trend, representing $90 billion a year in extra activity. That, according to the NYT, was constrained by shortages of homes to sell, and lumber and other materials used to make them. Data on housing starts suggest investment is likely to surge further in coming months.
Right on cue, Kate Everett-Allen reveals prime prices in key global cities are rising at their fastest rate since 2017. Prime prices, defined as the top 5% of the housing market in value terms, increased an average 4.6% in the year to March 2021.
Three Chinese cities – Shenzhen (+19%), Shanghai (+16%) and Guangzhou (+16%) – lead the index this quarter, fueled by improving economic sentiment and government investment in the Greater Bay Area of China. Buyer enthusiasm has persisted despite the introduction of a new round of curbs in January.
Vancouver and Seoul (both +15%) complete the top five rankings. Successive cooling measures have been deployed in both cities in attempts to reduce speculative activity but local appetite for homebuying remains undeterred. Residential sales in Greater Vancouver increased 22% in 2020 year-on-year.
Residential investment is now 14.4% above its pre-pandemic trend, representing $90 billion a year in extra activity. That, according to the NYT, was constrained by shortages of homes to sell, and lumber and other materials used to make them. Data on housing starts suggest investment is likely to surge further in coming months.
Los Angeles launches bold new ADU program to combat housing shortage
