A new report by Savills has revealed that out of the ‘big four’ global cities – Hong Kong, London, New York, and Moscow – Hong Kong has outperformed the other three over the past five years, with price rises for luxury property rising by 73% between 2005 and 2010.

Savills report: ‘The cost of accommodation has been increasing everywhere in the last five years but New York now looks ‘good value’ against other cities. As short a time ago as 2005, the costs of residential accommodation in each of the four cities looked broadly similar, with Moscow particularly cheap by comparison.

‘By the end of 2010 however, Hong Kong is considerably more expensive than London, Moscow is fast catching up, and New York is now the most affordable city. In local currencies, there is a notable volatility in the Hong Kong and Moscow markets. All markets peaked in 2007, with the exception of New York which saw continued growth into 2008, only suffering falls after the collapse of Lehman Brothers.

‘The rate of price growth in the residential markets of Moscow, and in particular, Hong Kong has been spectacular, even more at the very top of the market, where super-prime property suitable for the Global Billionaire grew 148%.

‘This rapid increase in Hong Kong residential values has been fuelled by Chinese mainland investors. These equity rich purchasers have high levels of capital to invest, and Hong Kong property is seen as a safe deposit of wealth. Mortgages too, have remained affordable with low interest rates set by a Hong Kong dollar pegged to the US dollar.’