6 May 2016 (Hong Kong) – Knight Frank today releases the Prime Global Cities Index for Q1 2016. According to the report, prime prices across the 35 cities increased on average by 3.6% in the 12 months to March 2016, with Vancouver leading the index for the fourth consecutive quarter.
Report highlights:
• Strong price growth in Sydney and Melbourne mean Australasia is the strongest-performing world region
• Strong demand in Shanghai led to a price growth of 20% year on year, however, in March the government tightened mortgage lending rules which is likely to result in slower growth in the second quarter
• Out of 35 cities, London has slipped to 23rd in the annual rankings with prime prices up 0.8% year-on-year
• Hong Kong and Taipei occupy the bottom rankings with luxury prices dipping 6.4% and 7.6% respectively
David Ji, Director and Head of Research & Consultancy, Greater China, says “Abundant supply and a potential US interest-rate rise in 2016 are expected to impose pressure on Hong Kong’s home prices. We expect luxury prices in the city to drop 5-10% this year, while mass-market prices could drop up to 10%. Meanwhile on the Mainland, the People's Bank of China is expected to further cut interest rate and required reserve ratio in 2016. Other relief measures such as the lowering of Loan-to-Value Ratio and reductions of transaction taxes are also expected.”
Kate Everett-Allen, Partner, International Residential Research, says “Despite stellar performances by four cities the overall narrative is one of more moderate growth. Since 2014 the index has consistently recorded annual growth of 3-4% with no city recording double digit annual price declines since Q2 2015.”
For further information, please contact:
Angela Fung
Associate Director, Public Relations, Marketing & Communications, Greater China
Tel: +852 2846 7175
Fax: +852 2840 0600
Email: angela.fung@hk.knightfrank.com