Monte Carlo

Monaco's ultra-prime property is still among the most expensive in the world

According to the latest from Savills World Research, a prime two-bedroom apartment close to this weekend's Monaco Grand Prix circuit is currently valued at €8,500,000, compared with €950,000 for a similar property near Singapore's F1 city track and €50,000 close to Montreal's (see table, below). Indeed, if the Principality's track were measured as dwelling floor space, it would be worth €3bn.

Monaco remains, at €90,900 per sq m, one of the most expensive destinations for ultra-prime property in the world (see table, below). Only Hong Kong tops this figure at €109,800 per sq m. But not only is the Principality's residential property market very valuable, it is also very small. Transaction numbers topped 547 in 2015, but even then this represented less than 4 per cent of private housing stock. On average, less than  3 per cent of private stock has traded each year since 2006. This means the average Monegasque property changes hands only once every 37 years – compared with prime London where properties trade nearer once every 20 years.

A total of €2.25bn sales took place in 2015, slightly down on 2014’s record €2.4bn. In the re-sale market, which accounted for 93 per cent of deals, 509 sales were recorded. This was 8 per cent down on 2014 volumes but still 11 per cent above 2007 levels. The very upper tiers of the market are the most liquid and total euro volumes stand 67 per cent above their 2008 peak.

However, land-constrained Monaco is expanding and rebuilding to remain relevant to modern-day occupier demands. Project Portier, a reclamation project agreed in 2015 and scheduled to complete by 2025, will add a further six hectares of land. Meanwhile, the Principality’s dual status as business destination and recreation centre, coupled with safe haven credentials, will continue to underpin its appeal.

 

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