Kuala Lumpur – Knight Frank, the independent global property consultancy, launches the Q1 2017 Prime Global Cities Index, which tracks the performance of luxury residential prices across key global cities on a quarterly basis. The index sees new cities, Istanbul and St Petersburg being tracked, bringing the total number of global cities on the index to 41. In Q1 2017, the index increased by 4.3%, largely due to China’s cities, which continue to dominate the top tier of the rankings.
Results for Q1 2017:
§ Guangzhou (36.2%), Beijing (22.9%) and Shanghai (19.8%) are ranked first, second and fourth, respectively on the index.
§ Guangzhou rises from a lower base than in Shanghai and Beijing. In Guangzhou, the availability of residential stock is tighter and cooling measures were implemented more slowly than most tier one cities.
§ Toronto – third on the index – ended Q1 2017 with year-on-year prices 22.2% higher, outpacing Vancouver (7.9%) by some margin. This led policymakers to announce a raft of new measures in April including a 15% foreign buyer tax putting the city on equal footing with Vancouver.
§ Established financial centres of the world such as Zurich (-7.0%), London (6.4%), Milan (-0.9%) and Tokyo (1.5%) are seeing slower price growth – on average 3.2% per annum – compared with the emerging tech hubs such as Seoul (17.6%), Stockholm (10.7%), Berlin (8.7%) and Melbourne (8.6%), which saw prices rise by 7.4% on average over the 12-month period.
Nicholas Holt, Asia-Pacific Head of Research, says, “Cities in China and Australia make up five of the top 10 prime markets globally in terms of annual price growth in Q1 2017 – a strong showing for the Asia-Pacific region. While the aforementioned markets will continue to see price growth in 2017, it is likely to be tempered due to continuing tighter lending restrictions and higher mortgage rates in both countries.”
Kate Everett-Allen, Head of International Residential Research, comments, “Although the world is in a state of political and economic flux at present and inevitably we are seeing a degree of safe haven investment flows into luxury property markets, the index’s upturn this quarter can largely be attributed to China’s cities which continue to dominate the top tier rankings.
An Asian revival might be overstating it but we are certainly seeing the region’s key cities of Hong Kong (5.3%) and Singapore (4.0%) rise up the rankings following years of lacklustre growth.”
To download the report, please visit: https://kfcontent.blob.core.windows.net/research/323/documents/en/q1-2017-4641.pdf
For further information, please contact:
Nicholas Holt, Asia-Pacific Head of Research
firstname.lastname@example.org +65 6429 3595 @nholtKF
Rachel Loke, Head of Asia Pacific Public Relations & Communications
email@example.com +65 6429 3587 @knightfrank
Ms Denise Nah, Asia-Pacific Public Relations & Communications Manager
firstname.lastname@example.org +65 6429 3599 @knightfrank
Ms Seline Soo, Marketing & Communications Manager, Knight Frank Malaysia
email@example.com +603 2289 9669 @KnightFrank_my
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 over 413 offices across 60 countries. These figures include Newmark Grubb Knight Frank in the Americas, and Douglas Elliman Fine Homes in the USA. 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 www.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.