North America and Australia boost Prime Residential Price Index
15 May 2015, Singapore – Knight Frank, the independent global property consultancy, today releases the Prime Global Cities Index. The index, which tracks the performance of luxury residential prices across 35 cities, continues to outperform mainstream market equivalent. However, it is a mixed picture with previous strong performers such as London slipping back whilst cities such as San Francisco, Vancouver and Sydney climb the rankings.
Ms Kate Everett-Allen, International Residential Research at Knight Frank, says, “If we were to omit cities in North America and Australia, the index would have recorded growth of 2.3% instead of 3.9% in the year to March 2015.”
Ms Alice Tan, Head of Research at Knight Frank Singapore, says, "Singapore's luxury residential market remains tepid for first 3 months of 2015, plagued by property cooling measures and persistent weakness in demand in the last 2 years. Notwithstanding the lack lustre price performance, there are recent signs of growing enquiries from prospective buyers who are gradually turning their interest to pick value buys. Singapore's luxury homes continue to possess long-term investment potential with its prime location, high quality and stable market fundamentals."
Luxury properties are, on average, 46% more expensive than in Q2 2009 when the index hit its financial crisis low.
Despite its cooling measures, Hong Kong saw an upturn in annual price growth as tighter mortgage restrictions targeted properties below HK$7m, shifting the focus of some investors from mainstream to luxury residential properties.
European luxury homes have, on average, been the weakest performers globally over the last year.
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