Singapore comes in second, averaging $919 per square foot in a city where 90.8 per cent of the population are owner occupiers, the data from the 2016 Global Living Review from international real estate firm CBRE.
The report, which compares property markets across 35 key cities, puts New York in third place at $907, London next at $734, then Paris at $541, Shanghai at $511, Beijing at $469, Frankfurt at $401, Bangkok at $370 and Los Angeles at $367.
The research shows that Istanbul has experienced the highest level of annual price growth at 25per cent, yet the city has one of the lowest average property values, making it an attractive investment option.
Overall, the results highlight that demand and growth remains highest in those cities that offer a safe harbour for wealth and a robust political and economic environment.
When it comes to lettings Singapore continues to lead the way, with average monthly rental prices at $2,960, whilst London follows closely with $2,810 in a market that is relying increasingly on the Private Rented Sector.
In third place is Abu Dhabi at $2,558, then Los Angeles at $2,544, Rome at $2,497, New York at $2,422, Milan at $2,286, Dubai at $2,160, Hong Kong at $1,960 and Miami at $1,868. Meanwhile, Madrid has experienced the biggest annual rental growth of 11per cent which CBRE says reflects the wider economic recovery in Spain.
“Global forces are constantly at work, changing our cities and shaping our lives. The homes we live in, invest in, purchase and rent, and the motivations for doing so, are being manipulated and modified by these global changes and influences,’ said Jennet Siebrits, Head of Residential Research at CBRE in a report by Propertywire.
She pointed out that the research has highlighted some surprising performances. ‘Istanbul and Vancouver have had the highest house price growth at 25per cent and 22per cent respectively, whilst newcomer Bangalore has made it in to the top three for rental growth,’ she said.
‘Singapore, a city that actually suffered house price decline last year, is now the second most expensive city in which to buy a property. House prices here are averaging $919 per square foot. Meanwhile in our highest value city, Hong Kong, average house prices are currently at $1,501,’ she added.
She also pointed out that wider economic growth continues to be reflected in local property markets and is a useful tool for identifying potential investment zones. For example, Istanbul experienced the highest annual house growth, whilst also having one of the best value average property price. ‘With increasing confidence in its property market as an investment haven, Istanbul is continuing to show signs of embryonic growth and huge potential,’ Siebrits explained.
‘In the UK, annual price growth to the end of May 2016 in London reached 13.6per cent, up from 8.7per cent growth one year ago, suggesting that demand for this world class global city remains strong,’ she added.