Miami is set to reign as the most prosperous high-end housing market next year, according to a 2022 forecast Monday from Knight Frank.
The South Florida metropolis leads the estate agency and property consultant’s global cities ranking, with its luxury property prices expected to grow 10% in 2022 on the back of high-demand stemming from Florida’s low-tax environment, the city’s competitive prices and the enduring appeal of coastal living.
“It comes as no surprise,” Georgina Atkinson, regional head of Knight Frank’s U.S. residential business in Asia Pacific and the Middle East, said in the report. “Bidding wars have now risen to their highest market share on record as the market pace in Q3 2021 was the fastest recorded. Sales continue to surge and there is a chronic lack of inventory.”
Coming in at a close second is Sydney, where prices are expected to rise 9% next year on the back of border reopenings, the return of investors and a “growing appetite amongst domestic buyers for second homes on Australian soil,” according to the report.
Los Angeles ranked third, where record-low inventory levels paired with a healthy appetite for large family homes and the availability of low mortgage rates are set to push high-end home prices up 8% in 2022.
Auckland and London rounded out the top five, with both cities expected to see luxury prices grow 7% next year.
“Since the start of the pandemic, we’ve monitored the performance of cities closely and the story is an evolving one,” Kate Everett-Allen, head of international residential research at Knight Frank, said in the report. “The narrative has pivoted from ‘cities are dead’ to ‘smaller, secondary cities are king’ and now ‘metropolises are back.’”
Across the board, key growth drivers next year are expected to come in the form of the easing of travel restrictions, limited supply, the demand for second homes and the increased wealth among big-ticket buyers.
