Ski home prices get a lift uphill

Photo credit: KitLKat

The average value of ski homes around the world rose 4.6 per cent in the year to June, outperforming luxury homes in many locations, according to the consultants’ latest prime ski property index.

The report, which tracks ski property in 18 resorts, shows values grew 4.6 per cent, marking a strong upward trajectory compared to the 0.9 per cent fall year-on-year recorded in June 2012. Ski property prices are now 11.9 per cent higher than the record low recorded in the second quarter of 2009.

The prices are being pushed up by rising demand from wealthy investors, who are competing for a limiting supply of real estate. The property’s lifestyle advantages and potential for further capital growth continues to attract investors. Indeed, in South Lake Tahoe and Queenstown (New Zealand), prices rose by a staggering average of 20.9 per cent and 18.6 per cent respectively annually.

In past years, Swiss resorts have dominated the Knight Frank rankings, ahead of the French Alps and, further down the table, North American and Russian resorts. Now, though, the rankings are for more evenly distributed, with Zermatt and Davos enjoying the strongest annual price growth, closely followed by France’s Morzine and Chamonix, where values jumped 8.5 per cent and 8 per cent respectively.

Despite this growth, though, sales have slowed slightly, partially due to the limited stock levels.

“Ski property owners are usually discretionary sellers with no pressing need to sell unless the ‘right’ price is achieved,” explains Kate Everett-Allen of Knight Frank’s International Residential Research.

“We expect sales activity to improve during the 2013/14 season as interest in ski homes spreads beyond Europe and North America to emerging centres of wealth.”