Global Prime Home Price Growth Slows
Overall global luxury residential prices stalled during the third quarter, recording the weakest quarterly increase since 2012, Knight Frank reports.
During the third quarter, prime home prices increased 1.2 percent, compared to the previous quarter, across all 27 cities followed by the consultancy.
However, the third quarter is consistently the lowest quarter for the global home price index, the firm notes.
"The slowdown can partially be attributed to weaker sales activity in the summer months and this year to the timing of Ramadan," Kate Everett-Allen, international residential research, said in the report.
The report demonstrates strong yearly price growth for the global cities, with prime home prices increasing on average 6.6 percent in the year to September, the strongest growth since the third quarter of 2010.
Despite various housing measures introduced by the Chinese government, home price growth in the country continues to defy expectations, the firm said. Home prices in Beijing increased by 7.9 percent during the third quarter, the strongest quarterly rise for all cities. Jakarta continues as Asia's hottest market
, with prime home prices consistently leading global growth. During the third quarter, home prices rose 27.2 percent. The city is followed by Dubai, Beijing, Bangkok and Tokyo.
At the other end of the spectrum, Rome recorded the strongest yearly decline with 7.7 percent; Singapore, Paris, Geneva and Zurich round out the bottom five.
Average luxury prices increased by 13.1 percent in the Middle East during the last 12 months, representing the strongest-performing region.
The prime global cities index is now 31 percent higher than its low during the second quarter of 2009, the firm said.
"With the Eurozone crisis abating, economic confidence improving - particularly in influential markets such as the US, the UK and Germany - and the financial markets offering little return, the appetite amongst the world's wealthy for luxury bricks and mortar is growing," Ms. Everett-Allen said.