According to the latest Prime Global Cities Index report released by Knight Frank, prime residential prices across the index’s 33 cities rose by only 0.2% in the third quarter of 2014. The report explores the reasons behind this sudden halt in growth.
This quarter marks the inclusion of Seoul for the first time. Prices in the South Korean capital are continuing their recovery since reaching their low in 2013.
Results for Q3 2014:
• The index increased by 0.2% in the third quarter of 2014, its weakest performance in two years
• Prime residential prices rose by 4% over a 12-month period, down from 6.6% a year earlier
• Tokyo recorded the strongest quarterly growth whilst Jakarta saw the strongest annual rise in luxury prices
• Luxury homes in North American cities increased by 10.5% on average in annual terms, European cities by comparison averaged a 1% rise
• In Q3 2014, Hong Kong outperformed Shanghai and Beijing, recorded a 1.7% positive price growth quarter on quarter
• The prime index stands 36.3% above its low in Q2 2009, whilst our mainstream global index rose by only 14.3% over the same period
Kate Everett-Allen, Partner, International Residential Research at Knight Frank, says, “Analysing the data on a quarterly basis, Tokyo and Cape Town were the strongest performers with prices ending the three-month period 9.2% and 6.3% higher respectively.”