Since the recession of 2008/09 real estate prices have rebounded. But they’ve rebounded in some places a lot faster than they have in others. As an investor, you’re always looking for the places with the biggest deltas. So where are real estate prices rising the fastest and where should you put your investment capital?
In this post we’re going to look at the cities where real estate prices have risen the fastest so far in 2016.
Cape Town
According to the Knight Frank Prime Global Cities Index, Cape Town has seen prices rise by 6.9 percent since this time last year. And while that may sound surprising, it shouldn’t be. Cape Town now has a global reputation as a stable business hub. And this is attracting talent from all over the world. The city is also seen as a gateway to the African continent. And it’s practically the only place in the south of the continent where businesses feel confident setting up. In fact, in Cape Town, there are pools of highly trained labour willing to do new, high-end service jobs. This has all combined to make prices in Cape Town jump considerably.
Melbourne
Since this time last year, prices in Melbourne have soared some 12.1 percent. It’s all part of a trend across the Australasian region right now of rising real estate prices. Investment opportunities, like the Peak Apartments in the city centre, have seen a surge in interest.
But what’s driving it? Again, it’s essentially because Melbourne has become a global city. It has, in a sense, become detached from the rest of the Australian market. Now the city is attracting international workers, looking to make good money in the city.
Sydney
Sydney has always been regarded as something of a prime location. As the de facto commercial and tourist capital of Australia, it is a choice location. Real estate prices have risen by 12.3 percent here, on 0.2 percent more than in Melbourne. And it’s largely driven by the same factors, but not entirely. More so than Melbourne, Sydney has the tourist element, which is driving business in the city to ever greater heights.
Shanghai
It should surprise no one that Shanghai has the second fastest real estate price grown in the world. Prices jumped 20.3 percent between January 2015 and January 2016. Right now, huge waves of Chinese migrants are moving from the towns into the city. And this is putting a massive demand on China’s cities, not least, Shanghai.
Shanghai’s price growth has also been fostered by low-interest rates and easy finance. This is bullish in the short-term, bearish in the long-term.
Vancouver
Prices in Vancouver are rising faster right now than anywhere else in the world. They rose 26.3 percent on an annual basis until January 2016. But why? The main reason appears to be a chronic lack of supply. It’s incredibly tough to build new housing projects in the city. And this is leading to surging house prices. Thus, Vancouver is one of the biggest opportunities right now for real estate investors.
