Friday , 21 July 2017


This Is Where The Uber Rich Are Buying (and Selling) Second Homes

There are over 552,000 multi-millionaires, and 87% of them own a second home. The wealth analystsreal-estate-7 at New World Wealth (NWW) have compiled their annual report on second home buying by multi-millionaires, those with over US$10 million in assets. Old money cites (NY, Hong Kong, etc…) top the list for the most secondary homes held by this segment of buyers, but some interesting new cities are experiencing rapid growth.

The comments above and below are from the original article by BetterDwelling.com which has been edited ([ ]) and abridged (…) to a limited degree by munKNEE.com to provide a faster and easier read.

London and New York City Top The List

Traditionally wealthy cities like London, New York City, and Hong Kong topped the list for second homes for these affluent buyers.

  1. London had the most second homes at 19,500, a decrease of 2,000 from 2015.
  2. New York had 18,400 second homes, an increase of 200 homes from 2015.
  3. Hong Kong had 15,000 second homes, a 200 home increase from 2015.

Secondary Homes Owned By Multi-millionaires (US$10M+ Net Worth)

Top 20 2015 2016
London 21,500 19,500
New York City 18,200 18,400
Hong Kong 14,800 15,000
Singapore 11,500 11,700
Dubai 8,400 8,600
The Hamptons 7,900 7,800
Geneva 5,500 5,500
Miami 4,100 5,000
Paris 6,300 4,800
Zurich 4,800 4,600
Los Angeles 3,800 4,000
Palm Beach 3,500 3,700
Rio 4,300 3,600
Sydney 2,700 3,500
Monaco 3,200 3,300
Tel Aviv 2,000 2,600
Rome 2,600 2,400
Cape Town 2,300 2,100
Nice 1,800 1,900
St Tropez 1,600 1,500
Source: NWW.

Biggest Winners of Millionaire Secondary Homeowners

Nice weather may have attracted second home buyers in 2016, since Sydney, Australia and Miami, USA topped the list for growth.

  1. Miami had 5,000 second homes held by rich folks, a 29.95% increase from the year before.
  2. Sydney had 3,500 second homes held by this segment, a 29% increase from the year prior.

Biggest Losers of Millionaire Secondary Homeowners

Political instability, one of the reasons wealthy families are migrating, may be driving wealthy second homeowners away.

  1. Paris was the biggest loser, with 4,800 second homes – a 23% decline from the year before.
  2. Rio had 3,600 second homes, a 16% decline from the year before.
  3. London had 19,500 second homes, a decline of a 9.3%.

A previous report from NWW had stated that wealthy homeowners are the first to move at signs of political unrest, since they have the means to do so.

Old money cities have been used by millionaires keeping secondary homes for centuries, but new cities are in for quite the surprise. The uber rich appearing in relatively smaller markets like Sydney, and Miami has sent local property prices soaring. This isn’t a problem if these buyers are helping up and coming cities like Sydney turn into the next New York City – a city where wealthy immigrants bring and start industries. Not so great if they’re turning them into the next Monaco, where there’s only seasonal business catering to the super rich.

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