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International Property
OpinionComment
Nicholas Spiro
Nicholas Spiro

The View | How New York and London markets’ recovery shows the enduring appeal of city living

  • Homebuyers in the West appear to be reassessing their priorities as life increasingly returns to normal and urban areas regain their appeal
  • The recovery in London and New York suggests the new normal for residential real estate will look more like the old one as people live and work in city centres

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A couple cross a road in Manhattan on May 16, 2020, in New York City. Flat sales in Manhattan reached their highest level in more than three decades in the third quarter of this year. Photo: AFP
Nicholas Spiro
Following the eruption of the Covid-19 pandemic, the fiercest debate in the property industry was about whether changes in the way people live, work and play were temporary or permanent.
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As the world’s mass experiment in working from home got under way, demand for offices was a key source of uncertainty. The wider concern was the future of big cities as many of the attributes of large urban centres – their liveability and connectivity – suddenly became less appealing.
In the United States and Europe, many city dwellers sought out properties with outdoor space in suburban and rural locations. Resort and coastal areas also experienced a surge of new residents. Some of the fastest rises in luxury residential prices last year were in cities such as San Diego, Aspen and Zurich.

However, national and regional differences emerged. In Asia – excluding Australia and New Zealand – homebuyers showed a strong preference for city centres. The desire for more indoor space and proximity to family and friends were key reasons for relocating, according to the results of a global survey of homebuyers published by Knight Frank last month.

This year, there have been increasing signs that big cities in Western economies are back in favour. With vaccines offering the prospect of a return to normal life and the drawbacks of suburban living becoming more apparent, many homebuyers are once again reassessing their priorities and lifestyles.

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A major shift in global residential markets over the past several months has been the resurgence of the high-end New York and London markets, which were hit hard by the virus-induced exodus of wealthier residents. In the third quarter of this year, flat sales in Manhattan reached their highest level in more than three decades, according to data from US brokerage Douglas Elliman.

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