The latest (15th) edition of Knight Frank's annual The Wealth Report was published last month. I find these interesting because they give you a global view of how and where capital is flowing into real estate (specifically prime real estate). London, for example, did rather well last year despite the pandemic. Buyers from the around the world spent nearly $4 billion on what is commonly referred to as "super-prime properties." This is real estate with a sale price of US$10 million or more. London saw 201 super-prime properties trade hands last year, with an average price of $18.6 million and with 31 of these transactions being at or above $25 million. This is an increase compared to the year prior (2019), which I suppose is something given that the UK's housing market was more or less frozen between March and May of last year. These figures put London at the top, ahead of New York and Hong Kong, when it comes to super-prime real estate sales in 2020. (London figures via the Financial Times.)
Another interesting thing that you'll find in the report is a city ranking that Knight Frank calls their City Trifecta. What this index does is take Knight Frank's City Wealth Index (which considers where wealth is currently concentrated) and then adds in two other dimensions: innovation and wellbeing. The idea here is that innovation should drive future economic growth and wealth, and that wellbeing (quality of life) is pretty important when it comes to the future competitiveness of our global cities. When you look at the world's top cities through this lens, the ranking starts to differ from what you may be used to seeing with cities like London, New York, and Hong Kong at the top (see above chart). Now you have Munich taking the number one spot; Boston and Toronto in 5th and 6th position, respectively; and cities like Zurich jumping up ahead of cities like Hong Kong. These kind of rankings always need to be looked at with a critical eye, but they can be interesting nonetheless.
Image: Knight Frank
Today we visited BMW Welt (World) and the BMW Museum in Munich. BMW Welt was designed by COOP HIMMELB(L)AU out of Vienna. It is the result of a design competition that the BMW Group held in 2001. Construction of the ~73,000 square meter facility was completed in 2007. The project is centered around a great hall and an elevated vehicle delivery area known as Premiere. It was designed -- and this includes the HVAC system -- to handle 40 car deliveries per hour, or 250 per day. I guess they don't work a full 8 hours. Below are two photos that I took of the delivery area. The circles you see on the floor in the second picture are rotating platforms. This is where you want to pick up your new car.
And here is a plan of the entire Welt space via COOP HIMMELB(L)AU:
I also really enjoyed the BMW Museum, which is housed in a separate building adjacent to the BMW Tower (the one that looks like engine cylinders). The "art cars" were a lot of fun. I'm sure that many of you will be able to guess the artist behind this one:
But what I enjoyed most were the classics like this one here:
The least interesting cars for me were the ones that weren't old enough to be "classic", but also weren't new and shiny. This can happen with architectural styles as well. Designs sometime need time to settle in. For more photos of BMW Welt and the BMW Museum, follow me on Instagram. Drawings/Isometrics: COOP HIMMELB(L)AU
I’m on a flight right now reading the latest issue of Monocle Magazine in a seat that barely accommodates the length of my femur. This month’s issue has their annual ranking of the top 25 cities in the world.
Munich is first, which is not unusual for their ranking methodology. It generally scores well. Quality of life is high. Crime is low. The economy is strong. Beer gardens are fun. And you’re close to the Alps for snowboarding.
One stat that caught my attention — and it’s not included for all of the cities — is the number of homes built in the past year. Presumably this is all housing units in the metro area — for sale, for rent, subsidized and so on.
Here are their (clearly rounded) numbers. The order is as they appeared in the ranking, but again, not ever city included this stat.
Munich: 8,300
Tokyo: 150,000
Copenhagen: 5,000
Berlin: 11,000
Madrid: 1,600
Hamburg: 7,000
Melbourne: 5,100
Helsinki 4,400
Stockholm: 7,000 (18,000 in Greater Stockholm)
Sydney: 39,000
Hong Kong 17,000
Vancouver 22,600
Amsterdam 5,100
Kyoto 8,900
Dusseldorf 2,600
Barcelona 1,000
Some of these numbers appear to stand out, such as the counts for Tokyo, Sydney and maybe Vancouver. But it’s hard to draw any conclusions around housing supply and housing affordability.
Melbourne and Amsterdam allegedly have the same number of homes built over the past year, but according to Monocle the metro areas of Melbourne and Amsterdam have populations of 4.85 million and 2.4 million, respectively. This also says nothing about their growth rates.
So which one is doing a better job of addressing housing demand? I’m not sure.
But it was still interesting to see that Tokyo delivers somewhere around 150,000 homes a year. Tokyo is somewhat unique globally in that it’s a big city — one of the biggest — that somehow manages to gracefully balance both scale and quality of life.
Photo by Elias Keilhauer on Unsplash