Many of us think that we suffer the highest property prices and ridiculous rises, but we are not alone. Knight Frank’s Prime Global Cities Index shows that three cities recorded double-digit annual price increases; Vancouver, Sydney and Shanghai and around 73% of cities recorded positive annual price growth in the year to September.
Kate Everett-Allen (left), Partner, International Residential Research, Knight Frank, says, “As we enter a new era of rising interest rates, greater regulation and potentially lower returns, it will be interesting to see which cities’ prime residential markets will outperform. Events in the world’s two largest economies look set to dominate the proceedings in 2016. The scale of the slowdown in China and the recent US interest rate rise will determine the performance of property markets across developed and emerging markets alike over the next 12 – 18 months.
“If we are to pick one prime market which we predict will outperform the world’s top tier of global cities, it is Sydney. Nonetheless, even here the pace of luxury price growth is expected to slow from 15% year-on-year in 2015 to 10% in 2016. Australia’s economic slowdown, weaker stock market performance in recent months and the introduction of foreign investment fees explain the lower rate of growth in 2016.”
Knight Frank’s global property statistics for 2015
- London is the most important city to the world’s wealthy, followed by New York and Hong Kong.
- Residential prices are highest in Monaco. Here, US$1m buys you 17.3 square metres,
- Singapore’s ultra-high net worth population (UHNW) is forecast to rise by 1,752 between 2014 and 2024.
- A study of 15 key global cities shows that at 2.9% and 2.3% foreign investors are charged the lowest property costs in Shanghai for a US$1m and US$10m investment respectively over a five year period.
- The same study of 15 global cities shows that tax costs are lowest in Monaco. Here, tax costs for foreign investors equate to 3.5% of the property price at year five whether purchasing a US$1m or US$10m property.
- New York and London continue to lead development trends, in terms of design, pricing and iconic architecture.
- Val d’Isere and Meribel lead the 2015 Ski Property Index recording annual price growth of 5.8% and 4.5% respectively
- Online viewings of island properties for sale increased by 21% compared with a year earlier
- Property accounted for 32% of an UHNWI’s investment portfolio according to this year’s Attitudes Survey.
- Cape Town, Zurich and Toronto recorded the strongest rise in prime rents in the year to June 2015