Tim Seymour: The value of so-called ultra prime homes throughout Asia has soared over the past five years as the continent mints ever more billionaires.
The changes are felt especially in Mumbai and Singapore, where prices have more than doubled.
Ultra prime homes are defined as having a value of more than $15.7 million. In Mumbai, the values have increased 138% and in Singapore, they have risen 144%, according to estate agent Savills.
During the same time, the value of ultra-prime homes in London and New York has risen just 40 percent, the Financial Times reported.
“Many more of the world’s billionaires are being created in China, rather than in New York or London, and it is shifting the buying patterns,” said Yolande Barnes, director of residential research at Savills.
The stability of London, New York and Paris is still attracting investment, the newspaper said, being driven by overseas investors.
The value of ultra-prime homes overall has increased by 65% over the past five years, the newspaper said.
The Guggenheim China Real Estate ETF (NYSE:YAO) is down about 25% so far this year.
Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.
About Tim Seymour: Tim is a founder of Emerging Money. He is a founder and Managing Partner at Seygem Asset Management, and The Emerging Markets Contributor to CNBC. Seygem Asset Management focuses on investing throughout the global emerging markets asset class. With a view that emerging and developing economies will continue to outpace the economic growth and advancement of developed economies, Seymour has devoted a career to investing in the dominant markets of tomorrow, today. Seymour’s career has included significant experience in both alternative asset management (hedge funds) and capital markets, having launched two hedge funds, and built the largest Russian broker dealer in the USA. Seymour started his career at UBS, focusing on international credit (cash, swaps, forex) in a specialized hedge fund group (New York). Seymour completed the firm’s training program after graduating with an MBA in international finance from Fordham University. Seymour received his undergraduate degree at Georgetown University.