In the Knight Frank Prime Global Cities Index, global residential prices for prime homes increased in 3Q2022 by 7.5% in 3Q2022, contrasted with the 10-% growth recorded in the 1Q2022.
Prime Global Cities Index Prime Global Cities Index is an index based on value that follows the trend of residential prices that are prime which is defined as the highest five% of the market for housing in terms of value, in 45 cities across the world. It is built on Knight Frank’s research network . It is a measure of the prices of local currencies.
The Hill @One-North condominium has been sold to Kingsford Development for S$162.388 million under the Government Land Sales (GLS).
The growth in prices for the quarter of last year was higher than the index’s average five-year rate at 4.4%, and the number of cities with decreases in prices y-o-y changed between six cities in the 2Q2022 seven in the 3Q2022.
Victoria Garrett, head of residential for Knight Frank Asia-Pacific, says that 85% of the cities surveyed show a significant increase in their prime prices annually. She says: “The markets that registered some of the highest price increases in the pandemic are well-represented in these cities: San Francisco, Toronto, Wellington, Stockholm, Vancouver, Los Angeles, Seoul and a handful of Chinese Mainland cities”.
The last quarter of the central area of London was able to see prices rise to 2.7% yearly. “Prices are currently increasing at the fastest rate since Q1 2015. The resilience of labour markets and a shortage of supply , and well-capitalised lenders will ensure that prime prices are maintained across the majority of markets until 2023,” says Garrett.
All in all, Dubai is the city with the fastest-growing residential property prices this year, increasing 88.8% over the first nine months of 2022. “Prime homes in the Asia Pacific continued to cool during the third quarter, with cities in the region being 11 of 19 global markets that saw an increase from June to September of 2022. This is an utter contrast from the annualized figures that had only four markets that were in the blue,” says Christine Li who is the head of research for Knight Frank Asia-Pacific.
But, a few Asia Pacific markets are holding in check, including Tokyo and Singapore in which rates for financing remain low, according to Li. She also adds that some price drops were noticed to be less severe in emerging markets in Southeast Asia.
“The continuing supply imbalance and an opening to travel and immigration is expected to boost the price level. But, as prices fall due to the monetary policy, things will remain a bit skewed in the short-term, and the primary market for residential homes across the globe is an opportunity for buyers,” says Li.
The shift from a prolonged period of low rates on loans could result in a squeeze especially for highly stressed principal residential landlords. This could lead to greater resales of property in certain cities, says Knight Frank.