Last year prices fell in 39% of locations, compared with almost half in 2012, and a fifth of markets featured saw double digit price growth in 2013 against only 15% the year before, the Prime International Residential Index (PIRI) shows.
The main division is between generally booming Asian markets, which dominate the top positions in our ranking of price growth, and the weaker European markets that account for 80% of all locations where prices declined in 2013.
Jakarta heads the index with annual growth of 38%, almost exactly the same as the rate seen in 2012. It is followed by Auckland in New Zealand at 29% and Bali with growth of 22%. Christchurch with 21% and Dublin at 18% make up the top five.
Also seeing growth were Beijing and Dubai, both at 17%, Abu Dhabi at 15%, and Guangzhou and Los Angeles both at 14%.
‘Price growth in Jakarta is supported by limited supply while demand has remained strong. This is despite a slowing in Indonesia’s economic growth and the uncertainty created by the forthcoming presidential election in July this year,’ said Hasan Pamudji of Knight Frank Indonesia.
New Zealand’s prime markets have also strengthened significantly, with very strong annual growth in both Auckland and Christchurch. Layne Harwood, managing director of Knight Frank New Zealand, said two key factors, strong economic fundamentals, with GDP growth comfortably above 3% in 2013, and strengthening inward migration mainly from Asia, are behind the growth. Returning expats are also fuelling the prime property market.
The rebound in markets most affected by the downturn in 2008 has continued. Dubai experienced 17% growth in 2013, to add to its 20% gain in 2012. In Dublin, which witnessed tentative increases in 2012, prices climbed 18% in 2013.
The index report points out that cities in Asia Pacific have, by and large, performed particularly strongly, although government cooling measures have pulled back growth in Singapore and Hong Kong.
Monaco continues to have the most expensive real estate in the world. Here $1 million will buy just 15 square meters of space. Next is Honk Kong at 21 square meters, followed by London at 25 square meters.
The same amount of money will buy 33 square meters in Singapore, 35 square meters in Geneva, 40 square meters in New York, 41 square meters in Sydney, 42 square meters in Paris, 43 square meters in Moscow and 46 square meters in Shanghai.
