Knight Frank, the independent global property consultancy releases the Prime Global Cities Index for Q3 2016. The index, which monitors and compares the performance of prime residential prices across key global cities, reports an increase of 3.8% in the year to September 2016. Despite an average annual growth rate of 3.8%, 18 of the 37 cities tracked by our index saw their rate of price growth slide compared with last quarter.
Among them were Vancouver, Toronto, London, Sydney and Melbourne; all cities where new taxes have been imposed in the last 12 months; either in the form of higher stamp duty, additional taxes for foreign buyers or the closing of tax loop holes for non-residents.
• The rate of growth declined in 48% of the cities tracked by the index compared with last quarter
• Although still on top, Vancouver’s quarterly price growth slipped to 1.5% in the three months to September
• Europe is split, Dublin is Europe’s strongest performer and Paris the continent’s weakest
• Currency, in particular the trajectory of the US dollar, will be critical to future prime market performance globally
Kate Everett-Allen, Partner, International Residential Research, Knight Frank, says, “Elections and referendums tend to provoke a ‘wait-and-see’ approach in the minds of buyers and this has been the case both in terms of the UK’s Brexit vote in June and the forthcoming US presidential election.”
Alice Tan, Director and Head of Consultancy & Research, Knight Frank Singapore, comments, "Despite the prevailing muted sentiment across the Singapore private homes market, amid economic weakness and property cooling measures, annual price recovery of Singapore’s ultra-luxury homes has been continuing for the past 3 quarters this year. The search for safe haven property investment destinations and the increased value proposition compared to elevated home prices in other global gateway cities largely supported the demand revival for Singapore ultra-luxury homes. However, growing headwinds such as the prospect of a slow economy and possibly lack of an uplift in private home sales could limit price growth of ultra-luxury homes going forward in the next 6 months or so."