Property values are on the rope in the US,
UK and many other countries - and as house values slip there
is little homeowners can do as their investment keeps sliding
- but wait and hope that their economies recover, and boost
buyers confidence enough to get the property markets going
again.
But there are some areas where the property
bubble just hasn't burst yet, and they're such niche markets
that they might just withstand current economic woes seen
elsewhere.
Real estate watchers will know that top end
London prices rose sharply in the last three years, but less
well reported has been how New York's Manhattan has fared.
While London prices are falling in many boroughs, one or two
are still showing slight increases on their 2007 values, but
overall London prices are expected to dip this year.
And while New York real estate prices could
drop too this year, Manhattan could see gains in property
prices.
Suprising given that New York real estate
prices dropped by four per cent in 2007, and yet, like London,
pockets of an area that is seeing property price reductions
can see good inflation for existing homeowners hoping their
property portfolio will continue to perform well.
In fact, when looking at the real estate
markets for the two leading financial centres of New York
and London, there seems to be a breakaway section of the property
market that behaves differently from other areas in the city
where the super rich don't favour, and are small enclaves.
Monaco, a financial centre as it is a tax
haven, and only a square mile in sze, is another enclave of
the wealthy that sees property behave quite differently from
neighbouring areas on the French Riveria such as Nice, Cannes
and St. Tropez.
'We often hear politicians comment that the
rich are getting richer', comments a UK based property company
who sells property in Monaco, 'And not only are the rich getting
richer they have a micro economic property bubble in Manhattan,
London and Monaco where the number of properties being sold
and their prices are completely independent, and seperate
from the rest of Europe and the U.S.'
Monaco property prices rose by over fifteen
per cent in 2007, and in Manhattan seventeen per cent - but
astonishingly apartments in Monaco priced at 10 million Euros
and above (around US$ 15 million) acheived a price hike of
over twenty five per cent.
Part of Monaco's price increases in recent
years, and for the medium term future too, is that new housing
being built is for locals, and a strong new supply of openly
available apartments is unlikely to happen for a decade -
and with strong demand and little supply it suggests further
price rises are likely for 2008.
British citizens have moved to Monaco in
high numbers in recent years and as UK taxes show no sign
of falling this large group is expected to swell further in
2008.
Previously a relatively small group of Monaco
residents, the number of British people living in Monaco has
doubled in the last two years since 2005, with some 3000 now
claiming residency in Monaco.
Time will tell if London and Manhattan's
top properties also continue to rise in the year ahead, pushing
the markets for the super rich still further away from other
real estate trends, and creating enclaves that belong to the
wealthy.
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