According to a study conducted by Luxury Portfolio International, the luxury arm of Leading Real Estate Companies of the World, Hawaii is the favorite destination for international luxury home buyers.
Luxury Portfolio International (LPI) unveiled a report on the preferred destinations of luxury real estate buyers. The study reports that 20% of international buyers are looking for a home in the 50th state of the United States, Hawaii, which represents one in five buyers.
The volcanic archipelago leads the survey by a wide margin, as the second most popular destination, the continental United States, receives only 8% of the votes. France is in third place and is of interest to 6% of international buyers of luxury real estate.
“In Hawaii, we are currently witnessing a market unlike anything we have seen in the state’s history,” said Matt Beall, CEO of LPI affiliate Hawaii Life Real Estate. “We continue to see inventory drop to record levels, with some markets having only one month’s supply left.”
Other popular destinations include, not surprisingly, China (6%), New Zealand (5%), Mexico (4%), Greece (3%), and Canada (3%). Regionally, international luxury buyers‘ interest is 37% in the U.S., the Americas, and the Caribbean, where Hawaii is located. Europe and the Middle East received 29%, while Asia mobilized 18% of international buyers.
In addition, the study conducted by Luxury Portfolio International reports that luxury real estate buyers plan to spend a median of $2.75 million on their next home. Twenty-eight percent plan to spend more than $5 million.
The main reasons for choosing a destination are better quality of life (75%), investment potential (69%), and flexibility (e.g., for land ownership or obtaining a second passport (58%)).
The particularity of luxury real estate clients is that they do not necessarily favor proximity to the city center when they decide to purchase a property. Instead, many prefer a natural setting, proximity to the sea, or a view of a lake or river. The features buyers want are good broadband speed, recreational facilities, and plenty of space.
Finally, the Luxury Portfolio International report reveals that the main reason luxury real estate buyers buy a home is the return on investment (27%). Respondents are also interested in a vacation home, or a single–family residence, preferably one that was recently built.
“In Hawaii, in terms of where international buyers are coming from, Japan tops the list, followed by Korea and then Singapore, while Canadian buyers continue to show strong interest in Maui and the western part of the Big Island,” says Matt Beall.
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