Sydney and Melbourne remain in the top 10
Chinese cities see rate of luxury price growth slow
18 August 2017, Kuala Lumpur – Knight Frank, the independent global property consultancy, launches the Prime Global Cities Index Q2 2017 which tracks prime residential prices across 41 global cities worldwide.
The report enables investors and developers to monitor and compare the performance of prime residential prices across key global cities. Prime property corresponds to the top 5% of the housing market in each city.
Highlights of the report:
The index saw growth of 4.4% in the year to June 2017, with Guangzhou leading the city rankings with luxury prices up 35.6% in the 12 months to June 2017.
Chinese cities led the index for three consecutive quarters. However, all three Chinese cities tracked by the index – Beijing, Shanghai and Guangzhou – recorded a decline in annual growth compared with the rate seen last quarter. Beijing recorded the largest drop – down from 22.9% year-on-year in March to 15.0% annual growth as at the end of June.
Sydney and Melbourne remain in the top 10, with Sydney staying at 6th place as per the previous quarter while Melbourne has slipped to 10th place from 9th last quarter.
European cities such as Madrid, Berlin and Paris have risen up the rankings in the last year.
Quarterly figures for Toronto suggest the new foreign buyer tax is having an effect on luxury price growth.
Nicholas Holt, Asia Pacific Head of Research, Knight Frank, says, “A majority of prime residential markets in Asia saw growth rates slow in the second quarter of 2017. Tier-1 Chinese cities continue to see the impact of the home purchase and lending restrictions, while Hong Kong and Singapore both saw price performance in prime residential homes slow since the previous quarter.
“In Australia, Sydney and Melbourne, with limited supply at the top-end of the market, continued to see buoyant price growth during the second quarter of 2017.”
Kate Everett-Allen, Partner, International Residential Research, Knight Frank, highlights, “Although prices in prime central London fell 6.3% in the 12 months to the end of June, the quarterly figure of -0.3% was the lowest quarterly fall recorded since early 2016. While there was an element of hesitation ahead of the General Election on 8 June, anecdotal evidence suggests activity has been relatively healthy since this time.”
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