Knight Frank, the independent global property consultancy releases the Prime Global Cities Index for Q3 2015. The index, which monitors and compares the performance of prime residential prices across key global cities, reports an increase of 20.4% in Vancouver in the year to September 2015. A shortage of supply and strengthening local demand alongside foreign interest are the reasons behind this strong performance.
- The index increased by 1.9% in the year to September 2015.
- Three cities recorded double-digit annual price increases – Vancouver, Sydney and Shanghai.
- The index now stands 34.1% above its low in Q1 2009 but its annual rate of growth is slowing.
- Around 73% of cities recorded positive annual price growth in the year to September, two years ago this figure was closer to 91%.
- Singapore is home to the weakest-performing luxury residential market for the seventh consecutive quarter.
Ms Alice Tan, Director and Head of Consultancy & Research, Knight Frank Singapore, says, “There is evidence of notable condominium sales transacted at prices that are close to typical market prices for ultra-luxury residential properties, hence we see a slight upwards improvement in the index from last quarter. However, such transactions remain low as interest in high-end residential properties continues to remain muted due to ABSD and uncertain market conditions.”
Ms Kate Everett-Allen, Partner, Residential Research, says, “The index’s annual rate of growth has slowed significantly from 7% two years ago to 1.9%.”