New York ranked most affordable among world’s wealthiest cities

February 10, 2011 03:56PM

Property prices are now substantially higher in the global cities of Hong Kong and Moscow, and lower in New York, according to a survey conducted by Savills Plc, an international property firm which is an affiliate of New York-based residential brokerage Stribling & Associates. The study compared the residential markets within four of the world’s cities sought out by the wealthiest households — London, Moscow, Hong Kong and New York — and revealed New York to be the most affordable. Using London as a means of comparison, the total cost of a group of residential properties of equivalent households is 8 percent higher in Moscow, 56 percent higher in Hong Kong and 18 percent lower in New York.

According to the results, these four cities outperform the broader market of their countries. The high-rise and compact characteristics of Manhattan living spaces make it possible for New Yorkers to live in prominent areas of central Manhattan, the report says. Additionally, an influx of foreign buyers proves that the demand for luxury residential property is on the rise. “Overseas buyers have become proportionally more important in the Manhattan market due to lower prices and the buying power of foreign currency,” said Elizabeth Stribling, the company’s president. She also noted that although residential real estate in New York is not inexpensive, when compared to other markets, it is relatively affordable and still a solid investment. TRD