The Knight Frank Prime International Residential Index for the second quarter of 2008 shows that there is a growing risk of oversupply and concerns about price bubbles in Asia.
'The financial markets have taken a significant turn for the worse and will drag down the performance of the prime markets over the next 12 months,' said a Knight Frank spokesman.
'Recent falls in energy and commodity prices also point towards a weakening in wealth generation in future months,' he added.
London has now moved into second place in the prime market, being overtaken by Monaco. Prices for the best properties in London are now reaching £3,290 per square foot compared with £3,760 in Monaco.
New York and the Cote d'Azur in France along with prime property in Courchevel in the French Alps, come next.
According to the analysis it is wealthy buyers from Russia who are influencing prices in London and the French and Italian Alps. Indian investors are also showing more interest in Europe and the US while in Asia it is the Chinese buyers who are leading the way.
Asked if super prime property could be reaching its peak, the spokesman said: 'Our view is that fundamental economic arguments point to continued support for this sector. Demand is not going to evaporate, wealth creation and accumulation in emerging economies and in specific high end service sector activities will continue.'
As far as the world's super prime properties are concerned, there seem little to worry about. They are still performing well especially in London, New York and Los Angeles, according to the index.