London keeps pace with Asia in billionaire property price race

Michael Bow
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LONDON has been ranked the third most expensive city in the world for billionaires to buy homes in, a survey released yesterday said.

Real estate properties for ultra rich buyers in the capital have soared 107 per cent since 2005, with billionaire properties in London costing £3,500 per square foot, the third most expensive in world, according to Savills.

The pace of growth is much higher than London’s historic rivals, with property prices in New York since 2005 up 47.4 per cent and Tokyo – which is the second most expensive place to live behind Hong Kong – at about eight per cent. Values in Tokyo fell 0.2 per cent for 2012 and stayed flat in New York.

London is the only so-called old world city to have seen significant growth since the financial crisis.

Rising commodity prices and the growth of a super rich class in emerging markets have propelled property prices there, with Singapore and Mumbai standing out as having seen the highest growth in ultra-prime values since 2005, at 232 per cent and 176 per cent respectively.