Key global cities see prime property prices rise 4.4%
Prime property prices in key global cities increases by 4.4 per cent in the 12 months to June 2017, with Guangzhou in China recording the biggest rise at 35.6per cent, the latest index shows.
Although Guangzhou leads the rankings, the data from the Knight Frank prime global cities index also shows that all three Chinese cities tracked recorded a decline in annual growth compared with the first quarter on 2017.
Beijing recorded the largest drop, down from 22.9per cent year on year in March to 15per cent annual growth in the second quarter of 2017, the figures show.
In Toronto, a city affected by new regulation aimed at curbing buyers from overseas, the annual growth of 20.7per cent suggests a level of resilience but quarterly figures show a slowdown. Prices increased by 8.5per cent in the first quarter of 2017 but by 5.1per cent in the second quarter, according to Propertywire.
Overall, 28 of the 41 cities, some 68 per cent, recorded flat or rising luxury prices over the 12 month period and this figure has remained largely static in last two years.
According to Kate Everett-Allen, head of international residential research at Knight Frank, a more valuable an indicator is the market direction of each city. That shows that cities in Asia, Russia and the CIS account for ten of the 17 cities that have seen their rate of annual growth decline compared with last quarter.
Conversely, cities in Europe and Australasia are well represented within the group that have seen a rise in their annual rate of growth compared with last quarter. Cities such as Madrid, up 10.7per cent, Berlin up 9.7per cent, Paris up 8.8per cent, and to a degree Dublin with growth of 3.8per cent, have seen a marked increase in their annual rate of growth compared with a year ago.
“Whilst safe haven flows, Brexit and a recognition of these cities’ comparative affordability may in part be responsible so too is the recent delivery of higher grade stock in these markets,”said Everett-Allen.
Although prices in prime central London fell 6.3per cent in the 12 months to the end of June, the quarterly drop of 0.3 per ent was the lowest quarterly fall recorded since early 2016. “While there was an element of hesitation ahead of the general election on 08 June, anecdotal evidence suggests activity has been relatively healthy since this time,” she added.