Christie’s International Real Estate is increasing its presence in Asia Pacific with the addition of two new affiliates in Japan and Thailand. Zackary Wright, Executive Director Asia Pacific & Western North America, was kind of enough to answer a few questions on what the firm has planned for the region and shared a few real estate insights as well.
What is behind Christie’s International Real Estate’s Asia Pacific push? What are some of the firm’s plans in Asia Pacific for 2018?
As the only global real estate company owned by a fine art auction house, Christie’s International Real Estate’s primary target markets are those where important clients of Christie’s reside, and destination markets where they want to own a second or third home.
We have long-standing Affiliates who have been serving the Asia Pacific region for many years: Landscope in Hong Kong; Singapore/Christie’s International Real Estate in Singapore; and Ken Jacobs in Australia.
We recently announced two new Affiliates, including Japan Capital Partners – because Japan is a market where Christie’s has long had a presence – and Richmont’s Luxury Properties in the emerging global destination market of Thailand.
Our strategy for the coming year is to identify other top luxury markets in Asia Pacific and around the world, and then select the brokerage most capable of meeting our clients’ discerning levels of customer care, expertise and service.
Hong Kong was recently named the world’s leading luxury property market by Christie’s International Real Estate. Why did it earn this distinction?
Monique Sofo, VP of Strategy, who heads the annual Luxury Defined state of the market report, provides these insights:
- Hong Kong surpassed London for the first time in our 2017 annual rankings of the world’s most luxurious prime property markets.
- Hong Kong reported four residential sales above USD 100 million in 2016—a record number for a single year by any city.
- Capped by a single sale eclipsing USD 270 million, Hong Kong led in almost all categories measured in our Index rankings, and also set new residential sales price records for the region in 2016.
- Sales activity at the ultra-high end has not slowed despite the introduction of higher stamp duties in late 2016 that were designed to cool the market.
- Two USD 100M+ residential sales were announced in early 2017, one for USD 360 million and the other for USD 139 million and both at The Peak luxury enclave, sealing Hong Kong’s place as the world’s top luxury market.
- Despite a series of stamp duty increases beginning in 2012, demand for premium homes remains strong, buoyed by mainland Chinese investors seeking to hedge against Yuan depreciation.
- Skyrocketing house prices, low interest rates, stringent development regulations, and limited supply of land have contributed to demand for luxury housing in Hong Kong. Despite an uptick in residential construction activity over the past 12-18 months, inventory is unable to meet demand.
How would you describe the luxury real estate market of Asia Pacific as a whole? What countries are the most interesting to buyers?
The luxury real estate market of Asia Pacific is very strong. In addition to Hong Kong, number one on the index of the top performing global luxury markets for 2017, Singapore retained the number five spot on the index and Sydney came in at number six.
In recent years, investors from China and other countries have shown strong interest in Japan’s luxury and signature properties. Tokyo has more MICHELIN-starred restaurants than any city in the world. A growing confidence in the economy, a long-standing foundation in the arts, beautiful urban areas, and a resurgence of interest in its ancient cultural traditions is further fuelling a spike in global interest – from both tourists and homebuyers. And, of course, Tokyo will be hosting the 2020 Summer Olympics.
Bangkok has more visitors each year than almost any city in the world, the majority of which come from Tokyo, Hong Kong, Kuala Lumpur and Seoul. They are drawn to the beautiful beaches, the food, the history, and also real estate. Bangkok is one of the great value propositions in all of Asia. As an added incentive, the Thai government offers a unique retirement visa program that is attracting retirees from throughout Asia.
One trend we are seeing is regional investors stepping up their luxury real estate acquisitions in neighbouring countries. Some trends are familiar, such as Singaporean buyers investing in Malaysia real estate, but some trends are new, such as Indonesia buyers becoming willing investors in countries like Thailand. What are some of the Asia Pacific luxury real estate investment trends you’re seeing now? What are you expecting in the future?
We agree. In addition to Japan, Thailand, and Australia, the Philippines is another market of note. The economy is improving and Asians looking for destinations with pristine beaches have discovered the area. We are marketing Villa One, an exquisite complex of four Asian-inspired casitas all with a view overlooking the majestic expanse of the Sulu Sea and with direct beach access. Located in Amanpulo, this ultimately exclusive resort is replete with a holistic spa; fine dining of healthy cuisine made from ingredients grown in the resort’s gardens, and its own airstrip.
In terms of luxury real estate in Asia Pacific, are there any projects that stand out to you and what are these doing right?
Kyoto’s Residences at the Four Seasons is at the cutting edge of noteworthy luxury in the region. Newly constructed and designed to maximize every modern convenience, these residences are also infused with Japan’s centuries-old traditions. Inspired by Kutsurgoi, the art of Japanese relaxation, select floorplans also offer the option of tatami rooms, a style dating back to the Muromachi Period when these spaces originally served as study rooms for the wealthy. Showcasing panoramic views of the majestic Shakusuien pond garden and Kiyomizu Temple, these gorgeous new residences are attracting interest from sophisticated buyers the world over.
Can you provide readers with a little background on how Christie’s International Real Estate works? What are some of the services you provide?
Admittance to the Christie’s International Real Estate network is by invitation only, extended exclusively to the world’s most accomplished luxury brokerages. We operate in 46 countries with offices in London, New York, Hong Kong, Moscow, Los Angeles, and Palm Beach. Christie’s International Real Estate and its affiliated brokerages have had combined luxury property sales of USD500 billion over the last five years.
Our specialty is properties valued in excess of USD1 million or in smaller markets, homes priced in the top 10 percent. Our marketing platform is proven effective in showcasing our extraordinary homes offered for sale.
Listings are showcased on christiesrealestate.com, a website reserved only for top-tier global luxury listings; included in video montages playing at Christie’s auction venues in London, New York, Paris and Hong Kong; have served as event venues for previews of Christie’s art and jewellery sales, and also benefit from referral opportunities that come with the coveted Christie’s International Real Estate Affiliation.
Is there anything else you would like to share with readers about Christie’s International Real Estate?
Our global network is distinguished as being the only luxury real estate marketing entity owned by a fine art auction house – and the most acclaimed at that. Christie’s and Christie’s International Real Estate are uniquely positioned to offer buyers and sellers of fine homes a suite of services, advice and venues which are simply unparalleled.