Monaco becomes world’s second most expensive ultra prime property
Ahead of the Formula One annual Grand Prix in Monaco new research shows that the price of ultra-prime property per square metre in the city is the second most expensive in the world with only Hong Kong more costly.
Last year was a strong one for Monaco with a total of €2.25 billion sales with new builds making up just 7 per cent of total sales but 20 per cent of total sales value.
The data from Savills World Research also shows that prime two bedroom apartments on the Grand Prix track are nearly nine times the cost of comparable properties on the Singapore race track and if the track was measured as dwelling floor space, it would be worth €3 billion
The report points out that Monaco is a small market and average prices are prone to fluctuation depending on the sample of properties sold in any one year. In 2015 the average resale price in Monaco stood at €3.5 milion, down 4.8per cent on the previous year, while the median price at €2.1 million was up 5%. The long term median price trend shows
consistent growth, averaging 5.8per cent per annum since 2010.
“Monaco continues to be an exceptionally attractive location for the global wealthy and has all the key ingredients for real estate price growth” the report says.
“A very strong local economy employs more people than can be physically accommodated within the Principality. High demand for both residential and commercial space meets with slow supply in an extremely land limited area,” it explains.
This means that Monaco remains one of the most expensive destinations for ultra-prime property in the world only Hong Kong tops it at €109,800 per square meter compared to Monaco’s €90,900 per square meter.
The report points out that while Monaco’s residential property market may be very valuable it is also very small. Transaction numbers topped only 547 in 2015, but even then thper cent of private housing stock numbers in Monaco.
On average, since 2006, less than 3per cent of private stock has traded each year. This means the average Monegasque property changes hands only once every 37 years compared to prime London where properties trade nearer once every 20 years.