Key global cities register price growth in prime residential property in 3Q2020 despite pandemic: Knight Frank

SINGAPORE (EDGEPROP) - According to Knight Frank’s Prime Global Cities Index for 3Q2020, the international real estate consultancy found that 62% of tracked global cities registered price growth in the respective prime property sectors. This is based on a valuation-based index that tracks the movement in prime residential prices across more than 40 cities around the world.

In 3Q2020, the index increased by 1.6% y-o-y with 62% of the cities tracked recording a climb in their prime property prices on a yearly basis. However, Knight Frank says that the percentage of cities registering annual price declines was also creeping up from 23% at the end of 2019 to 38% in 3Q2020.

Last quarter, Auckland led the rankings after recording a 12.9% y-o-y increase in prime property prices. It was followed by Manilla which saw a 10.2% y-o-y increase, and Shenzhen which registered an 8.9% y-o-y increase in prime property prices. Singapore took 45th place with prime property prices falling 6.1% y-o-y in 3Q2020.

Knight Frank says that with most international restrictions still in place across much of the world, the demand for luxury properties remains primarily domestic in nature.

One notable city performance was Vancouver in 7th place. The city recorded a 6.6% y-o-y jump and a 1.8% q-o-q increase during the period of review. “Vancouver’s recovery continues to surprise having sat low in the rankings for the last four years following the introduction of a 20% foreign buyer tax,” the report says.

Knight Frank says that given the present uncertainty around the world, buyers are looking more favourably at luxury property, mirroring buying attitudes last seen in 2008. “With equity markets volatile, Brexit looming large, the repercussions from the US presidential election expected to rumble on, and further waves of the pandemic hitting Europe and the US, property’s credentials as a safe and tangible asset class are rising to the fore,” the international real estate consultancy says.