Knight Frank, the independent global property consultancy, today releases the Prime Global Cities Index for Q2 2015. The index, which tracks the performance of luxury residential prices across 35 cities worldwide, has been rising for 22 consecutive quarters but the pace of growth has almost halved in the last year with annual growth falling from 5.2% to 2.5%.
- The index increased by 2.5% in the year to June 2015 but recorded flat growth in the first half of 2015
- Vancouver, Miami and Sydney occupy the top three rankings in terms of annual price growth
- Monaco has seen sales activity increase pushing prices up by 7.9% year-on-year
- Singapore (down 15% year-on-year) is home to the weakest-performing luxury residential market for the sixth consecutive quarter
Ms Alice Tan, Director and Head of Consultancy & Research, Knight Frank Singapore, says, “The continuous price fall seen in Singapore's luxury residential market testifies the persistently weak sentiment that has plagued the market for almost two years. The Additional Buyer's Stamp Duty has been a significant deterrent for foreign buyers, and the negative price performance compounds the weak demand situation. Yet, the lower prices now present a higher value proposition for luxury properties and we are seeing more enquiries from interested buyers. While there is a potential ‘green shoots of recovery’ for this segment, existing cooling measures are not likely to be adjusted in the short term. Hence, luxury residential prices are expected to register lower declines with up to -1% quarterly change in the second half of this year.”
Ms Kate Everett-Allen, Partner, Residential Research, says, “Asian cities are rising up the rankings with seven of the top ten cities now based in the Asia Pacific region.”
Mr Nicholas Holt, Head of Research for Asia Pacific, says, “Since the Lehman crisis in September 2008, prime Asian residential markets have seen some of the strongest price growth globally. Jakarta, which is seeing its market slow in 2015 on the back of a cooling economy and additional taxes, leads the way with a staggering 174.5% price appreciation over this period.
“Beijing and Shanghai, the political and financial capitals of mainland China, have also seen their prime markets significantly appreciate over this period, with the huge growth in the number of HNWIs’ demand for high-end property. Recent volatility in the Chinese stock market could lead to more capital seeking a home in bricks and mortar, providing a boost to demand in Tier-1 Chinese prime residential markets.”
For further information, please contact:
Ms Alice Tan, Director and Head of Consultancy & Research, Knight Frank Singapore
Ms Rachel Loke, Head of Asia Pacific Public Relations & Communications
Ginli Tang, Senior Corporate Communications Executive, Knight Frank Singapore