While most of us read with awe about “mystery” foreign buyers plunking down $100 million to buy apartments on 57th St. the reality is that London’s luxury real estate market prices far surpasses Manhattan and certainly New Jersey.
With the average price per square foot reaching a dizzying $3,380, London even dethroned of Hong Kong as the priciest city on the planet. Hong Kong is still holding on to second place and Manhattan is in third place with prices per square hovering around $3290 and $3240 respectively.
London brokers are however saying that prices may be plateauing in The City as the wave of foreign funds that has pushed prices to these lofty levels may be slowing. They cite concerns of political uncertainty focused mostly on the the possibility of higher taxes as the reason why foreign money influx is cooling off. In London foreign buyers purchase 77% of the real estate market compared to about 33% in New York City.
Foreign money leaving London may actually be a bonus for New York and New Jersey as capital looks for new harbors safer from the threat of higher taxes.