THE ADDRESS Magazine No.20 | Page 335

system. Lifted by one of the world’s richest sovereign wealth funds, Norway ranks at the top of the Material Wellbeing sub-index. The country has further strengthened its fiscal position by reducing its public debt, reduced unemployment and better income equality. Australia ranks No. 3, up two spots from 2014, while Iceland and Netherlands finish 4th and 5th. New Zealand and Australia are the two non-European countries to reach the Top 10 due in large part to their mandatory retirement savings programmes. Australia’s Superannuation Guarantee system and New Zealand’s voluntary KiwiSaver demonstrate that security for retirees begins well before the date an individual actually retires. All nations that finished in the Top 10 enjoyed a well developed and growing industrialised economy with strong financial system and regulations, excellent public access to good health care and social services, and substantial public investment in infrastructure and technology. Prime ski properties showing surge in value in top resorts Luxury ski homes rose in price by 5.9% across a list of 20 top resorts in the year ending June 2014, up from 4.6% the previous year. Queenstown in New Zealand, and Aspen, Colorado, showed the largest increase in values, up by 24.8% and 20.7% respectively. Knight Frank’s prime ski property index report says New Zealand is experiencing an economic upturn, foreign investment and low interest rates which are contributing to the jump in prices there. In Aspen despite annual price growth of over 20% luxury prices are still 18% below their pre-crisis peak. North American resorts generally outperformed Europe, recording average price growth of 13.3% compared to 1% in Europe. However, North American prices remained 9.9% below their peaks of 2008, whilst in Europe, prices were nearly 9% higher than 2008. Morzine, in the French Alps, saw luxury property prices rise by 6.7% in the year to June 2014. Val d'Isère, which has seen sales strengthen in 2014, particularly in the €1 million to €2 million price bracket, saw prices rise by 3.2% after two years of flat prices. Zermatt in Switzerland experienced annual price growth of 5.5%. The report points out that uncertainty in the Swiss market surrounding Lex Weber, the introduction of a 20% cap on second homes per commune, has delayed some purchase decisions. Cortina, the most upmarket resort in the Italian Dolomites, experienced a price drop of 11%. Meanwhile, lack of supply at upmarket resorts such as Courchevel and Val d'Isère kept prices up. The report states: “Certainly, the world’s top resorts have a lot currently riding in their favour: limited supply, rising global wealth, large-scale investment in infrastructure, easier access via new flight routes and an increasing focus on delivering a year-round holiday destination. And this is against a backdrop of a global economic recovery.” Ultra-high net worth individuals are expected to increase in numbers by 28% over the next decade, meaning demand for ski property lifestyle investments seems strong, it says. China, India and Indonesia are expected to produce many of those individuals. Many Asian ski resorts are in their infancy, with limited luxury accommodation available. But with the Chinese registering 7 million ski visits a year, expectations are that the property numbers will rise dramatically, while the spillover to more developed resorts in other parts of the world is a forgone conclusion. ‘If we set this expanding demand against the limits on supply,