The latest edition of the Prime Global Cities Index, which tracks the performance of luxury residential property prices in key cities around the world, rose by 6.6% on average in the year to September but by only 1.2% in the last three months.
This quarter’s results represent the index’s strongest annual growth since the third quarter of 2010 but its weakest quarterly growth since 2012.
On closer analysis however, the third quarter has been the index’s weakest performing quarter for the last three years. The slowdown can partially be attributed to weaker sales activity in the summer months and this year to the timing of Ramadan. This coincided with quarterly growth rates in Dubai almost halving from 6.1% in the second quarter to 3.4% in the third.
Despite the third quarter’s muted performance, the appetite amongst the world’s wealthy for luxury bricks and mortar looks to be growing. The index now stands 31% above its low in the second quarter of 2009. 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, prime property remains firmly on the radar of the world’s wealthy.
In annual terms Jakarta and Dubai recorded the strongest growth, with prices 27.2% and 21.8% higher respectively than a year ago.
On a quarterly basis Beijing recorded the strongest quarterly growth of all the cities in our index with prime prices up by 7.9% over the three month period. China continues to defy expectations – its hard landing looking an increasingly remote prospect.
The full index listing each city’s luxury price performance over the last three, six and 12 months can be viewed HERE