Photo credit: Yohanes Budiyanto
The agent’s index of luxury residential property prices across 33 cities edged up by 0.2 per cent in the third quarter of 2014, it weakest period in two years, as cooling measures in Asia and European economic uncertainity take their toll.
Our Prime Global Cities Index, which tracks the movement of luxury residential prices across 33 cities, rose by only 0.2% in the third quarter of 2014, its weakest performance in two years.
Jakarta tops the rankings once again, with prices rising 27 per cet in the year to June, but even the Indonesian city has seen a sharp deceleration, with values only climbin 2.5 per cnet in the first half of 2014. Dubai has seen a similar slowdown, which Knight Frank attributes to both the UAE Central Bank’s mortgage caps and Ramadan, while the approaching General Election in the UK (including on-going discussions of a Mansion Tax) have hit London’s market.
As a result, Tokyo and Cape Town were the strongest performers with prices up 9.2 per cent and 6.3 per cent during the three months respectively.
Seoul also makes an appearance in the index for the first time, with luxury residential prices in the South Korean capital continuing to rebound from a low in 2013, with prices up 4.1 per cent year-on-year in September 2014.
Knight Frank adds that other temporary factors contributed to the slow period, with the summer holiday season often seeing slower sales activity, which reduces pressure on prices. The European slowdown, though, highlights the relative strength of luxury real estate in the US: all four cities included in the index are in the top ten rankings for annual price growth, with luxury prices up 10.5 per cent on average across North American cities in the year to September, compared to an average of 1 per cent across Europe.
Source: The Movechannel