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Global home prices hit new peak

By Judy Martel ·
Tuesday, March 11, 2014
Posted: 5 pm ET

Residential prices in 53 countries reached a new high by the third quarter of 2013, exceeding the previous 2008 peak by 4 percent, according to an index developed by the Knight Frank research firm. Prices were also 12.7 percent above second quarter 2009, the low point of the global financial crisis.

In New York City, one of the fastest-growing cities for residential price gains, $1 million will buy only 40 square meters (431 square feet).

In New York, one of the fastest-growing cities for residential price gains, $1 million will buy only 431 square feet on average.

Meanwhile, the list of the 10 fastest-growing locations is made up largely of cities where only the ultrarich can afford to buy.

Asia leads, Europe bleeds

For the year ending in the third quarter of 2013, Dubai, China and Hong Kong posted the highest price increases, while emerging markets such as Turkey, Brazil, Taiwan and Indonesia also had double-digit gains.

Europe was the biggest underperformer. Fourteen of the 17 countries where prices dropped were in Europe. The other three countries were New Zealand, Japan and South Korea.

By the end of 2013, a fifth of the locations in the index recorded double-digit price gains, with the Asia-Pacific region leading the way. Jakarta, Indonesia, topped the list of cities with a gain of 38 percent.

Hoity-toity cities

Glittery Monaco topped the list of fastest-growing locations in the index, where $1 million will buy an average of 15 square meters, or 161 square feet. Second was Hong Kong, where the same amount will buy 21 square meters (226 square feet). London, Singapore and Geneva rounded out the top five. In New York, ranked sixth on the list, $1 million will buy 40 square meters -- the equivalent of a 20-by-21.5-foot room.

Keep up with your wealth and mortgages and follow me on Twitter: @JudyMartel.

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1 Comment
March 12, 2014 at 11:18 am

Good sign for the economy, bad sign for homebuyers.