News releases

Los Angeles claims top spot in Schroders Global Cities 30 Index for the second time

24/01/2018

Los Angeles has been named as the top global city for the second time in the fourth publication of the Schroders Global Cities 30 index, narrowly beating Hong Kong which took second place knocking London into third place.

US cities

US cities continued to dominate the index taking 17 of the of the top 30 places, including five of the top ten spots. New York, the most populous city in the United States jumped one place from fifth to fourth, however Boston and Chicago both fell from third place to sixth and fourth place to seventh respectively.

US cities have been in the spotlight recently as Amazon looks to find the best city to host HQ2, its second headquarters in North America. Twenty cities have been shortlisted by Amazon and of those 20, eleven feature in the Schroders Global Cities 30 index.

Chinese cities

Chinese cities saw the most improvement taking four of the top 30 places including two in the top ten. Shanghai jumped from tenth spot to fifth, Beijing climbed from 11th place to fourth and Shenzen increased its place in the index from 24th to 20th.

Australian cities

Australian cities struggled to maintain their positions in the index and were among some of the biggest fallers. Negative revision to population growth and GDP impacted Brisbane and Perth in particular. Perth dropped 15 places from 36th to 51st whilst Brisbane fell from 22nd to 30th.  Melbourne also saw a drop in ranking and lost its spot in the top ten, falling from eighth place to 16th.  Sydney was the only Australian city to improve its ranking, climbing from 14th place to take the tenth spot in the index.

European cities

London was once again the top ranked European city, despite falling by one place to third place in the overall index. Paris, the only other European city to feature in the top 30, climbed one place from 16th to 15th.

The Schroders Global Cities 30 index is compiled on a range of factors, including the projected growth of the economy, university rankings, disposable incomes over the next decade and the size of the population.

 Hugo Machin, co-Head of Global Real Estate Securities said:

“The Schroders Global Cities 30 Index looks at scale and growth of a city. We believe that cities with scale have a structural advantage. However, the model also captures fast growing cities. This means the ideal city would be medium sized with identifiable economic growth.

“It’s no surprise that Los Angeles has reclaimed its place at the top. This is due to a combination of large scale and excellent economic growth. The scale and economic depth of LA makes it a compelling location to work and live.

“Chinese cities continue to do well in the index with Shanghai and Beijing taking top ten spots. It remains clear that the increasing wealth being generated in leading Chinese cities is being reflected in the index. The scale and growth of Chinese cities is supportive of their high ranking. Shanghai, Beijing and Shenzen all moved up the index on the basis of small improvements in the income factor. This improvement shows that the population within the major Chinese cities are becoming wealthier, as the Chinese economy transitions from manufacturing to consumer.

“Australian cities generally fared quite poorly. On the positive side, Sydney continues to do well. This further supports our view that employers focus on locations with the best educated workforce and transport infrastructure to compete in the knowledge economy.

“London has slipped from second place to third. This is due to a slightly lower score on the university section of the ranking. We have made no negative revisions for London due to a perceived loss of growth from the vote to leave the EU. London remains one of our favoured places to invest.”

Machin co-manages the Schroder Global Cities Real Estate fund with Tom Walker. Their aim is to invest in stocks that should benefit from strong demand for commercial property in the world’s most highly-ranked global cities. They seek to invest in cities with restrictions to sprawl, be it geographical limits or planning rules, such as London’s green-belt.

The global cities team has launched the Global Cities blog which acts as a resource on the longer term trends impacting global real estate. For further reading please visit http://www.schroders.com/en/schrodersglobalcities/

 

CITY

COUNTRY

REGION

RANK

Los Angeles

United States

North America

1

Hong Kong

Hong Kong

Asia

2

London

United Kingdom

Europe

3

New York

United States

North America

4

Shanghai

China

Asia

5

Boston

United States

North America

6

Chicago

United States

North America

7

Beijing

China

Asia

8

Houston

United States

North America

9

Sydney

Australia

Oceania

10

San Francisco

United States

North America

11

Singapore

Singapore

Asia

12

Seattle

United States

North America

13

San Jose

United States

North America

14

Paris

France

Europe

15

Melbourne

Australia

Oceania

16

Toronto

Canada

North America

17

Atlanta

United States

North America

18

Washington

United States

North America

19

Shenzhen

China

Asia

20

Dallas

United States

North America

21

San Diego

United States

North America

22

Philadelphia

United States

North America

23

Miami

United States

North America

24

Tianjin

China

Asia

25

Baltimore

United States

North America

26

Tokyo

Japan

Asia

27

Phoenix

United States

North America

28

Minneapolis

United States

North America

29

Brisbane

Australia

Oceania

30

 

For further information, please contact:

Schroders

Charlotte Banks, Intermediary   Tel: +44 (0)20 7658 2589/ charlotte.banks@schroders.com

Lucy Cotter, International   Tel: +44 (0)20 7658 3365/ lucy.cotter@schroders.com

 

Notes to Editors

Note to Editors

For trade press only.  To view the latest press releases from Schroders visit: http://ir.schroders.com/media

Schroders plc

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*as at 30 September 2017

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