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Knight Frank Global Residential Cities Index Q4 2016

20 April 2017

Malaysia – Knight Frank, the independent global property consultancy, today launches the Global Residential Cities Index for Q4 2016 which tracks the performance of mainstream house prices across 150 cities worldwide, 47 of which are from the Asia-Pacific region.

 

Fig 1

 

Results for Q4 2016

·         House prices increased by an average 6.6% in 2016, its highest rate in three years. However, excluding Chinese cities, the index would have increased by only 4.9% in 2016.

·         Chinese cities occupy the index’s top nine rankings for annual house price growth. Nanjing leads the rankings with average prices ending last year 41.1% higher. Chinese cities would have occupied the entire top ten had New Zealand’s Wellington (23.7%) not nudged Shenzhen (23.5%) out of tenth spot.

·         The cities of Auckland (12.4%) and Vancouver (17.0%) which have for several years been New Zealand and Canada’s stellar performers have now been usurped by their respective rivals, Wellington and Toronto (19.8%).

 

Nicholas Holt, Head of Research for Asia-Pacific, Knight Frank Asia-Pacific, says, “The dominance of major Chinese cities at the top of the 12-month price growth rankings, has led to increased moves by policy makers to cool these markets off with tougher home purchase restrictions and tighter lending criteria. These measures, coupled with more stringently imposed capital controls could push more capital into some of the smaller Chinese cities, some of which are suffering from significant supply overhangs.

 

“Elsewhere in the rankings, Australian cities continue to see significant price growth, buoyed by low interest rates and strong urbanisation rates – although price appreciation is expected to moderate in most of these markets in Australia throughout 2017 given tighter bank lending criteria and a slight softening of external demand.”

 

Kate Everett-Allen, Partner, International Residential Research, says, “The impact of the Federal Reserve’s third rate rise in 10 years (to 1%) will filter into next quarter’s edition but we do not envisage a sudden slowdown in US cities’ price inflation. Furthermore, we may see stronger capital outflows from the US to key European and Asian cities.”

 

Sarkunan Subramaniam, Managing Director of Knight Frank Malaysia, comments, “Despite weaker property market condition, house prices in Kuala Lumpur continued to uptrend, posting a modest 5.1% increase y-o-y. Moving forward, prices of residential properties in prominent and established areas in the city are expected to remain resilient with moderate capital appreciation. Transit oriented developments along the Light Rail Transit (LRT) and Mass Rapid Transit (MRT) routes are expected to gather pace with improved connectivity.”

 

END

 

For further information, please contact:

 

Mr Nicholas Holt, Asia-Pacific Head of Research

nicholas.holt@asia.knightfrank.com +86 10 6113 8030 @nholtKF

 

Ms Rachel Loke, Asia-Pacific Head of Marketing, Communications & Digital

rachel.loke@asia.knightfrank.com +65 6429 3587 @knightfrank

 

Ms Denise Nah, Asia-Pacific Public Relations & Communications Manager

denise.nah@asia.knightfrank.com +65 6429 3599 @knightfrank

 

Ms Seline Soo, Marketing & Communications Manager, Knight Frank Malaysia

seline.soo@my.knightfrank.com +603 2289 9669 @KnightFrank_my

 

 

To download the report, please visit:

http://www.knightfrank.com/research/global-residential-cities-index-q4-2016-4567.aspx

 

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 14,000 people operating from 413 offices across 60 countries. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit knightfrank.com.

 

Knight Frank has a strong presence in Malaysia with its headquarters in Kuala Lumpur as well as branches in Penang, Johor and Kota Kinabalu. The company offers high-quality professional advice and solutions across a comprehensive portfolio of property services and is registered with the Board of Valuers, Appraisers and Estate Agents. The Company is licensed to undertake property, valuations / consultancy, estate agency and property management and is also on the panel of all leading banks and financial institutions. For further information about the Company, please visit www.knightfrank.com.my.