The World Property Journal’s Michael Gerrity reported that Knight Frank’s latest Prime Global Cities Index indicated that global luxury home prices increased only +1.4% this year to June 2019. This +1.4% increase in worldwide luxury home prices is significantly lower than the 4-year average of +3.8%, despite an effort by policy makers generating a wave of interest rate cuts in hopes of stimulating economic growth.
Knight Frank’s key findings in its latest Prime Global Cities Index included the following:
- Berlin had the strongest rate of annual price growth of all cities included in the
- 3 percentage points separate the strongest and weakest performing cities.
- 78% of all Index cities registered a prime price increase in luxury homes over a 12-month period.
- 76% (35 of 46) cities registered prime price growth in this year to June 2019.
- Madrid and Paris (+5.2% and +5.0% annual growth respectively) had variations in price growth at neighborhood levels.
- In Madrid, Chamber and outer non-prime districts were strong.
- In Paris, the Left Bank (6th and 7th arrondisements) “paused” after price growths of +11% in 2017 and the 18th arrondisement continued its upward price trajectory.
- China also had variations in price growth at neighborhood levels.
- Beijing and Guangzhou showed increases of +4.5% and +2.7% respectively.
- Hong Kong showed flat growth of 0.0% due to concerns over the trade war.
Top 10 Cities in Terms of Global Cities Price Growth
- Berlin +12.7%
- Frankfurt +12.0%
- Moscow +9.5%
- Manila +6.2%
- Geneva +6.0%
- Madrid +5.2%
- Paris +5.0%
- Zurich +4.5%
- Beijing +4.5%
- Delhi +4.4%
Closer to home, luxury home price growth in Miami, San Francisco and Los Angeles increased +1.5%, +1.2% and +0.7% respectively.
Bottom 10 Cities in Terms of Global Cities Price Growth
- Vancouver -13.6%
- Istanbul -9.9%
- Auckland -7.5%
- Nairobi -6.7%
- Dubai -6.0%
- London -4.9%
- New York -3.7%
- Shanghai -3.5%
- Seoul -3.4%
- St. Petersburg -1.0%
Again closer to home, luxury home price growth in Los Angeles decreased -0.7%.