LA Makes Knight Frank Suggested Places to Buy

by Landon M. Scott

According to Knight Frank, a well respected global real estate brokerage, “The housing market in the city of angels is hardly flying high – real estate consultancy Marcus & Millichap predicts the number of completed apartments will hit a 16-year low in 2011. But nowhere is looking more ripe for recovery than the Wilshire area just north of Beverly Hills….values have been relatively stable [since 2009] and a survey by the National Association of Realtors shows prices of mid- to top-end LA homes have risen a gentle 2 per cent in the past six months.”

So I take back partly what I said yesterday, that now and LA isn’t a time/place to buy quite yet; for higher end homes in higher end regions, it seems we are coming off the bottom. But I still think for the low to mid range of homes and multifamily, though, prices may soften a little yet, or stay flat for a while. Again, no problem admitting I was (somewhat) wrong.

Overall, according to an index aggregated by Knight Frank since January 2002 (US info comes from Case/Shiller), net price appreciation in Los Angeles has been 38.5%. Here are the rest of the cities that Knight Frank considers as “plum suggestions” for “those with, say, £700,000 [about US $1,139,000] to spend, even for those demanding investors who want an optimum combination of capital appreciation, high rental yield and a chance to enjoy sunshine and culture wherever they choose to invest”:

Net Price Appreciation from January 2002

Hong Kong – 139.7%

London – 85.3%

New York – 31.9%

Shanghai – 151%

Sydney – 51.6%

Mumbai – 59%

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