Demand for homes in popular ski resorts is rising at a rapid rate around the world according to a new report.
Data from Knight Frank shows that Swiss resort, St Moritz recorded the strongest price growth in 2021 with property prices increasing by 17 per cent according to the firm’s Ski Property Report.
Knight Frank notes that in the past 12 months, demand for ski homes has remained strong, with low stock levels contributing to the upward pressure on prices.
Other properties in popular ski resorts across Switzerland have also experienced robust growth after opening in December 2020.
Verbier has also seen strong growth, with prices climbing 10.2 per cent, including some sales at 12 per cent above the asking price.
The resort also achieved a record sale price of CHF30,000 per square metre for a resale apartment.
The French Alps also proved to be a popular location with Chamonix (6.1 per cent) and Megeve (4.7 per cent) seeing strong growth, as restrictions eased in places like Milan, Turin and Geneva.
Knight Frank Head of International Residential Research Kate Everett-Allen said the current growth might slow down as travel restrictions continue to ease.
“This year has been an anomaly,” she said.
“We don’t expect this frenetic pace in Swiss resorts to continue. Supply constraints will ease as the COVID-19 landscape starts to normalise.”
Knight Frank Head of Swiss Sales Alex Koch de Gooreynd said potential sellers had been holding off to make the most of their property’s potential .
“Would-be sellers have become landlords and parents that are thinking of selling have put their plans on ice as their children or extended family members have wanted to enjoy the Alps in the last 12 months,” he said.
“While this affection for the mountains shows no sign of cooling, we are hopeful that we will start to see stock levels recover, albeit slowly.”
The report also notes that Colorado in the US saw 51 per cent surge in transactions in 2020, while sales slowed in Aspen in 2021, due to a shortage of stock.
This also had an inflationary effect on prices.
Riley Warwick at Douglas Elliman, Knight Frank’s residential partners in the US, said one sale, in particular, caught his attention.
“One property I’m familiar with sold for US$6.65m in 2019 and was resold in 2020 for US$9.3m despite no significant refurbishment, almost a 40 per cent increase,” he said.
