Chinese cities dominated the top 10 positions for annual prime residential price growth, according to Knight Frank’s latest Prime Global Cities Index report in 3Q2016. The Chinese cities such as Shanghai, Guangzhou and Beijing posted 23.4%, 14.3% and 7.1% y-o-y growth respectively. Singapore was ranked 12th with a y-o-y growth of 6.2%.
Meanwhile, Hong Kong, where luxury residential prices are 4.7% below their 2Q2015 peak, has bucked the trend with prices rising by 4.1% in 3Q2016. Strong demand has led to a recent upturn in sales in the city.
Despite an average annual growth rate of 3.8%, 18 of the 37 cities tracked by the index saw their rate of price growth slide compared with the previous quarter. Among them were Vancouver, Toronto, London, Sydney and Melbourne, where new taxes have been imposed in the last 12 months.
Knight Frank reckons currency movements to be the single-largest determinant of international demand in the world’s top cities over the next six to 12 months. Investors are increasingly looking to the US as their haven of choice as the world economy stutters, but a strong dollar will have repercussions globally, adds Knight Frank.
Chinese cities dominated the top 10 positions for annual prime residential price growth