Knight Frank today launches the Global Residential Cities Index for Q3 2016 which tracks the performance of mainstream house prices across 150 cities worldwide based on official house price data published by either National Statistic Offices or Central Banks. 40 of the 150 cities tracked are from Asia-Pacific.
Results for Q3 2016:
- Index increases 6.3% year-on-year, the strongest annual rise since Q4 2013. Asia (12.7%) saw the largest average percentage price change compared to other regions across the world.
- House prices increased in 77% of the 150 cities tracked by the index year-on-year.
- 13 cities recorded price rises in excess of 20% in the year to September.
- 33 cities saw prices fall, out of which 20 were in Europe and 6 were in Asia-Pacific.
- Top tier cities in China continued to stand out, accounting for all top eight rankings for annual growth on the index. This was an increase from six in the previous quarter. Nanjing (43%) and Shanghai (40%) usurped the rapid-growing technology hub of Shenzhen (35%) in Q3 2016.
Kate Everett-Allen, Partner, International Residential Research, says, “Urbanisation and rising household wealth are behind the surge in Chinese prices but it is far from uniform with smaller cities and rural markets lagging behind. Since September there is some evidence to suggest the rate of price growth has cooled in a few key cities as the new regulations have taken effect.”