What type of property does $5 million buy around the world?

Contact

Sep 22, 2016

What type of property does $5 million buy around the world?

A global benchmark for luxury property is $5 million; we take a look at what it can buy in the world's top property markets.

Monaco is the world's most expensive city for real estate, with $5 million buying only 1,399 sqf.
$5m in Hong Kong will buy 1,646 sqf.
Image: Christie's.

This four-bedroom duplex at One Kensington Gardens is on the market for £11.7m. A $5m investment in London will buy 1,730 sqf.
The view from 80 Columbus Circle, New York, where the penthouse is expected to fetch US$50 million. In New York, $5m will buy 2,815 sqf.
Image: Papaty.

In Paris, $5m will buy 3,229 sqf.
Image: Christie's.

A beautiful three-bedroom home for sale in Kirribilli, Sydney. In Sydney, $5m buys 7,352 sqf, a relatively large area compared with other global cities.

Monaco, Hong Kong, London, New York and Paris are the most expensive markets for luxury real estate worldwide, according to Christie’s International Real Estate.

Million dollar plus homes in most luxury housing markets range from US$200 per square foot to just under US$1,100 per sqf, based on Christie’s data for the year of 2015. However, Monaco stands on its own, costing US$4,500 per sqf for its luxury homes.

Meanwhile, property firm Knight Frank recently calculated what US$1m buys in global luxury markets and found that property in Sydney is about twice as affordable as Monaco, Hong Kong and London.

Knight Frank’s index focuses on value per square metre and shows that $1m in Monaco only gets 17sqm of ‘prime residential property’, followed by Hong Kong at 20sqm and London at 22sqm. Sydney offers double this size for the same price at 40sqm and Melbourne even more at close to 116sqm, says Knight Frank.

Another measure of luxury pricing used by Globalpropertyguide.com is the price to rental cost ratio, which, for example, shows that the average price of a London property is 31 times the cost of a year’s rent. Hong Kong prices are 36 times a year’s rent and New York 26 times a year’s rent. However, by this measure, Vienna leads all other markets as the most expensive, costing 46 times its average yearly rent.

To keep things simple, here’s a snapshot of five of the world’s most expensive property cities (plus Sydney), and what $5m will buy you in those locales, based on a 2016 report from Christie’s and other sources.

Monaco

A quick scan of property for sale in Monaco shows an otherworldly market. For example, a three bedroom - three bathroom waterfront apartment is currently for sale at US$17.6m, says Christie’s. It offers a panoramic sea view with a vantage of the city’s formula one track. If you’re looking for something a little cheaper, Sothesby’s is advertising a renovated two bedroom duplex with a large terrace for US$10.9m.

Average price per sqf: US$4,500

For $5m: 1,399 sqf

Source: Christie’s

Hong Kong

The Arch building in West Kowloon, Hong Kong, boasts harbourfront views and all the mod cons. Its two bedroom apartments are therefore typically priced at HK$450m, as per Landscope-Christie’s. Meanwhile, four bedroom townhouses at the inaptly named Repulse Bay, fetch for about HK$680m, according to Landscope-Christie’s. This price can secure you four bedrooms, four bathrooms, a view of both greenery and the sea, and just in case, two maid’s rooms.

Average price per sqf: US$3,000

For $5m, 1,646 sqf

Source: Christie’s

London

London has a broad range of luxury properties but perhaps none more enticing than its spacious family houses in suburbs like Kensington. For instance, 28 Hyde Park Gate was formerly the home of Sir Winston Churchill and is currently selling for £22.9m, says Christie’s. It has seven bedrooms and 55-foot long west facing garden. For the more modest price tag of £11.7m you could nab a generous four bedroom duplex nearby, in a building with 24 hour concierge and a swimming pool.

Average price per sqf: US$1,930

For $5m, 1,730 sqf

Source: Christie’s

New York

New York boasts its fair share of luxury homes, but often comparatively smaller than in other major cities at similar price points. For example, the grand penthouse at 80 Columbus Circle is going for US$50m, which is perhaps a bargain for such an amazing view of Central Park, as per Sotheby’s. That price secures the buyer four bedrooms, five bathrooms and almost 5,000 square feet of space.

Average price per sqf: US$1,860

For $5m, 2,815 sqf

Source: Christie’s

Paris

Parisian luxury property is also expensive but a cursory glance of for sale homes shows there are some slightly more affordable options. For instance, a five bedroom townhouse on 465 square metres and not far from the Eiffel Tower, is currently selling for £5m, as per Luxuryestate.com. The buyer can enjoy elegant early 1900s architecture, complimented by a neat garden.

Average price per sqf: US$960

For $5m, 3229 sqf

Source: Christie’s

Sydney

Surrounded by its harbor and beautiful bushland, Sydney is home to some highly sought after luxury property. Such is the layout of the city, you could easily find a waterfront mansion and penthouse suite on the same street. For example, Kirribilli, on the northern side of the harbour, offers large apartments alongside breathtaking waterfront mansions. One such house is a three bedroom - five bathroom house that comes with its own jetty, advertised by Christie’s. Another is an estate home in Middle Harbour that’s going for US$19m, as per LuxuryHomes.com.

Average price per sqf: US$680

For $5m, 7,352 sqf

Source: Christie’s