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
https://twitter.com/WaterfrontTO/status/1290698023962648582?s=20
One of my favorite public spaces in the city is easily Sugar Beach at the foot of Jarvis Street. So I couldn't resist sharing this before and after tweet by Waterfront Toronto. Sugar Beach turns 10 years old next week. It's nearly a teenager.
For those of you who were around and paying attention a decade ago, there was a bit of controversy over the cost of this park -- specifically its pink umbrellas. The budget for the park was $14 million and each umbrella cost $11,000.
It's one of those things that's easy to single out and make a big deal out of -- if that's what you're trying to do. "How much? $11,000 for a candy pink beach umbrella? Come on."
But as Waterfront Toronto explained in this blog post from 2014, each umbrella was fabricated out of a solid piece of fiberglass and was designed to withstand hurricane winds, as well as a good old fashioned Toronto winter. They also serve as lighting for the beach at night.
Part of this is coming from lessons they learned on previous waterfront parks, where the umbrellas weren't as expensive and haven't been as resilient to the elements. So there is a whole life cycle cost analysis to be considered here.
Now I don't profess to be an expert on candy pink beach umbrellas, but I will say this: Sugar Beach wouldn't be Sugar beach without them. And ten years later, it's easy to argue for this being one of the most successful public spaces in the city.
P.S. If I could make one small request for Toronto's waterfront, it's that we need to better engage the lake. We need proper places to swim. Think of the Strandbad Tiefenbrunnen or the Seebad Enge in Zurich. We may need to tidy things up a little, but it'll be worth it.
Using data from Turner & Townsend, Curbed recently reported that the most expensive city in the world in which to build is now San Francisco. On average, it costs USD 417 per square foot. San Francisco is followed by New York ($368 psf), London, Zurich, and Hong Kong. New York took the top spot last year, but San Francisco shot up this year because of, you know, tech.
This number was calculated using a blend of six different types of construction, everything from apartment high-rise and prestige office to general hospital and warehouse distribution centers.
Now, I'm not exactly sure what this number includes. But I'm assuming it is only direct construction costs and doesn't include (contractor) general conditions, land, or any soft costs, which are all significant. Once you add in these other cost inputs, I am sure that you can start to see how things -- including the cost of new housing -- can quickly escalate.
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
https://twitter.com/WaterfrontTO/status/1290698023962648582?s=20
One of my favorite public spaces in the city is easily Sugar Beach at the foot of Jarvis Street. So I couldn't resist sharing this before and after tweet by Waterfront Toronto. Sugar Beach turns 10 years old next week. It's nearly a teenager.
For those of you who were around and paying attention a decade ago, there was a bit of controversy over the cost of this park -- specifically its pink umbrellas. The budget for the park was $14 million and each umbrella cost $11,000.
It's one of those things that's easy to single out and make a big deal out of -- if that's what you're trying to do. "How much? $11,000 for a candy pink beach umbrella? Come on."
But as Waterfront Toronto explained in this blog post from 2014, each umbrella was fabricated out of a solid piece of fiberglass and was designed to withstand hurricane winds, as well as a good old fashioned Toronto winter. They also serve as lighting for the beach at night.
Part of this is coming from lessons they learned on previous waterfront parks, where the umbrellas weren't as expensive and haven't been as resilient to the elements. So there is a whole life cycle cost analysis to be considered here.
Now I don't profess to be an expert on candy pink beach umbrellas, but I will say this: Sugar Beach wouldn't be Sugar beach without them. And ten years later, it's easy to argue for this being one of the most successful public spaces in the city.
P.S. If I could make one small request for Toronto's waterfront, it's that we need to better engage the lake. We need proper places to swim. Think of the Strandbad Tiefenbrunnen or the Seebad Enge in Zurich. We may need to tidy things up a little, but it'll be worth it.
Using data from Turner & Townsend, Curbed recently reported that the most expensive city in the world in which to build is now San Francisco. On average, it costs USD 417 per square foot. San Francisco is followed by New York ($368 psf), London, Zurich, and Hong Kong. New York took the top spot last year, but San Francisco shot up this year because of, you know, tech.
This number was calculated using a blend of six different types of construction, everything from apartment high-rise and prestige office to general hospital and warehouse distribution centers.
Now, I'm not exactly sure what this number includes. But I'm assuming it is only direct construction costs and doesn't include (contractor) general conditions, land, or any soft costs, which are all significant. Once you add in these other cost inputs, I am sure that you can start to see how things -- including the cost of new housing -- can quickly escalate.
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