Attention wishful foreign investors and vacation house hunters: The world is your oyster. But as readers of our weekly International Real Estate columns know, buying internationally can be complex and fraught with unexpected hurdles. So where to begin?
This week’s chart, which shows fluctuations in international home prices over time, may offer a good starting point. Using data from Global Property Guide, which provides price information on home values in more than 70 countries, Hong Kong (part of China) and the U.S. territory of Puerto Rico, we’re looking at where prices grew at the greatest rates over one year, five years and 10 years as of the third quarter of 2019. The data is culled from central banks and national statistics and serves as a good general guide for home values.
The top of the list shows that a home purchased in Hong Kong a decade ago is likely worth nearly three times as much today. Does that suggest Hong Kong real estate will continue to grow at the same rate over the next decade? Of course not. Over five years, the growth was a substantial 44 percent, but over one year, real estate there was down a little over 2 percent.
While 20/20 hindsight on price changes is helpful, the universal investment disclaimer certainly applies: “Past performance is no guarantee of future results.”
So study our chart, and begin to dream. But don’t forgo consultation with financial, legal and real estate professionals. Making connections with other international buyers to learn about their experiences will also prove invaluable.