The index Knight Frank Prime Global Cities Index Q3 2018, which tracks prime residential prices across 43 global cities worldwide, increased by 2.7% in the year to September 2018, its weakest performance in annual terms for almost six years.

Kate Everett-Allen, Partner, International Residential Research, Knight Frank, highlights, “2018 marks a watershed for the index. The overall narrative of lower growth, which we predicted in 2017, has materialised. The rate of growth has declined for three consecutive quarters and has now reached its lowest rate since Q4 2012. A combination of uncertainty surrounding Brexit, rising interest rates across major economies, a tighter regulatory environment and the remnants of high supply in some markets is impinging on price growth.”

Highlights of the report:

• The price of a luxury property increased by 2.7% on average in the last year across 43 cities
• 74% of cities registered an increase in prime prices year-on-year
• Singapore (13%) is the city with the strongest rate of annual prime price growth
• Hong Kong’s annual price growth has slowed to 5.5%, trading its top spot with Singapore
• Despite a ban on the purchase of existing properties by overseas buyers, luxury prices in Auckland increased by 8.5%

Nicholas Holt, Asia-Pacific Head of Research, Knight Frank, says, “Prime residential markets continued to slow in Asia-Pacific in Q3 2018, with 13 of 17 regional markets seeing growth decelerate on the previous quarter. Rising interest rates, cooling measures and worsening prospects for global growth are all contributing factors to this region’s prime market slowdown.

Knight Frank Prime Global Cities Index Q3 2018 
Ranked by annual % change (Q3 2017 to Q3 2018)

Source: Knight Frank Prime Global Cities Index Q3 2018

“While pockets of outperformance remain, these growing headwinds are likely to ensure that sentiment in many prime cities residential markets remains muted towards the end of the year.”

The report enables investors and developers to compare the performance of prime residential prices across key global cities. Prime property corresponds to the top 5% of the housing market in each city.

Click here to download the Knight Frank Prime Global Cities Index Q3 2018 Report.

For more information about the report or the global prime city market contact Kate Everett-Allen, Partner, International Residential Research, Knight Frank via the contact details below. 

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