Expensive Luxury Real Estate Markets

Take a look around the world at what $1.5 million buys in 20 of the world's most expensive housing markets.

1. London
Price: $6,191 per sq. ft.
What you get for $1.5 million: Small studio apartment
Annual price change: 29%*
A housing boom began in Central London in September, 2005, and continued through 2007, as wealthy buyers flowed in from around the world. The annualized growth for prime real estate is slowing this year and is expected to weaken further. But the super-luxury segment remains incredibly strong. Sales for £10 million-plus homes in Belgravia, Chelsea, Knightsbridge, and Mayfair increased by 190% in the six months ending January, 2008, compared with the same period a year earlier.


2. Monaco
Price: $5,888 per sq. ft.
What you get for $1.5 million: Studio apartment
Annual price change: 25%
It's not just the casinos, beautiful people, and staggering views of the Mediterranean that have made Monaco a popular home for the world's wealthiest buyers. The real appeal is that its residents don't pay income tax.


3. St. Jean Cap Ferrat (France)
Price: $5,853 per sq. ft.
What you get for $1.5 million: Small studio apartment
Annual price change: 39%
St. Jean Cap Ferrat on the French Riviera continues to be popular with European aristocracy and the super-rich, such as billionaire Paul Allen, who enjoy the gorgeous beaches and warm weather.


4. Courchevel (France)
Price: $4,710 per sq. ft.
What you get for $1.5 million: Studio apartment
Annual price change: 5%
Like to ski and shop? This resort town high in the Savoie region of the French Alps is favored by the Russian elite and is known for expensive hostelries such as the Hotel Le Lana, fashion boutiques, and wild parties.


5. Hong Kong
Price: $4,507 per sq. ft.
What you get for $1.5 million: Studio apartment
Annual price change: 21%
Hong Kong's real estate market has been driven by China's strong economic growth. Despite limited space, real estate demand on the island has started to slow, and prices are softening as the effects of the U.S. credit squeeze spread.


6. Manhattan
Price: $4,320 per sq. ft.
What you get for $1.5 million: Studio apartment
Annual price change: 25%
At the high end, Manhattan continues to boom even as the credit crunch deepens. In fact, in the first quarter of 2008 average prices were up 19% and the price per square foot was up 16%, according to the Corcoran Group. There are several reasons: First, the city has been shielded from the subprime crisis, largely because its co-ops and condos are well out of reach of most buyers with poor credit and shaky finances. Second, it remains a popular destination for movers and shakers in the financial, entertainment, and media world. Last, because of the weak dollar it is more affordable than ever for wealthy foreigners looking for a Manhattan pied-à-terre.


7. Cortina d'Ampezzo (Italy)
Price: $3,028 per sq. ft.
What you get for $1.5 million: 1 bedroom
Annual price change: 22%
The Northern Italian resort town is a popular second-home destination for ski buffs and Milan's business elite. Prices for prime European vacation homes have benefited from the growth of the world's population of high-net-worth individuals.


8. Portofino (Italy)
Price: $2,692 per sq. ft.
What you get for $1.5 million: 1 bedroom
Annual price change: 14%
Although there's no beach, the harbor of this resort village on the Italian Riviera is packed with yachts owned by the world's rich and famous. The village is about 20 miles from the Genoa airport.


9. Singapore
Price: $2,423 per sq. ft.
What you get for $1.5 million: 1 bedroom
Annual price change: 31%
The city's high-end real estate has benefited from an influx of foreign buyers and has been particularly strong close to the Orchard Road shopping area and on the island resort of Sentosa.


10. Tokyo
Price: $2,334 per sq. ft.
What you get for $1.5 million: 1 bedroom
Annual price change: N/A
Despite traditionally astronomical prices and cramped living conditions for all but the very wealthiest, Tokyo's market is beginning to slow as a result of the credit crunch and a heavy supply of new condos that have recently come on the market.