Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Thu
Oct 30th
Lost Password? Register
Home arrow Global arrow Jakarta, Bangkok and Miami top global cities prime property growth

Jakarta, Bangkok and Miami top global cities prime property growth

Monday, 29 April 2013
Image
The average price of luxury homes in the world’s key cities fell by 0.4% in the first quarter of 2013 although the annual rate remained positive at 3.6%.

Cities in Asia, North America and the Middle East continue to dominate the top half of the results table while seven of the bottom ten rankings are occupied by European cities, according to Knight Frank’s latest Prime Global Cities Index.

On a regional basis, cities in the Middle East recorded average annual price growth of 11% while Europe was the weakest performing region with prime prices falling on average by 2.3%.

A typical prime property is now worth 21.3% more than it was in the second quarter of 2009 when the Prime Global Cities Index hit its post-Lehman low.

Overall eight cities recorded double digit price growth in the year to March. Jakarta, Bangkok and Miami topped the table this quarter, recording annual price growth of 38.1%, 26.1% and 21.1% respectively.

Knight Frank says that the measures aimed at cooling residential price growth in Jakarta and Bangkok have been less stringent than those applied across many neighbouring Asian cities, allowing new middle class wealth to fuel demand and push prime prices higher.
 
In Miami’s case, Latin American wealth is a key driver of the luxury market, with the flow of capital from Brazil, Venezuela and Argentina proving influential.

Cities in Asia, North America and the Middle East continue to dominate the top half of the results table while seven of the bottom ten rankings are occupied by European cities.

In Europe, however, the price of luxury homes in Monaco increased by 10% in the first three months of 2013 as international interest swelled and the supply of apartments, particularly above €10 million, proved limited.

Tokyo, recording a 17.9% fall in prime prices, was the weakest performing city in the year to March 2012. However, after nearly 15 years of deflation, the Bank of Japan has announced radical monetary easing measures, and as a result business sentiment as well as demand for prime property is now strengthening.

Knight Frank points out that unlike Japan, the governments of China, Hong Kong, Malaysia and Singapore face the opposite challenge; trying to restrain growth. ‘Asia’s policy makers are not only introducing more lending restrictions, taxes and regulations, but the strength of these measures has been stepped up in recent months,’ said Kate Everett-Allen, head of international residential research.

‘In each year since 2009, our Prime Global Cities Index, has repeatedly recorded its weakest rate of growth in the first quarter of the year,’ she explained.

‘As a result, we expect stronger growth to emerge in the second quarter as buyers continue to search for luxury bricks and mortar as a way of sheltering their assets from the Eurozone’s continuing turmoil and the fragile global economy,’ she added.


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here



Company news

Design of largest research complex in Seoul unveiled

Design, architecture, engineering and planning firm HOK has unveiled plans for the largest research complex in South Korea for clients LG Group which will act as the centre for its next generation of research and development.

Finance Update

Nationwide resumes access to Help to Buy for home movers

Nationwide Building Society has announced that it is resuming access for home movers looking to participate in the government’s Help to Buy equity loan scheme from Wednesday, 24 September 2014.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>