The average value of a property in 150 key cities worldwide increased by 4.3% in the year to June 2018, while Asia has the strongest property price growth, the latest global index shows.
Ahmedabad in India leads the annual rankings, registering a 19% rise. Two other Indian cities also made the top 10 with prices in Hyderabad up 16% and in Pune up 14%, according to the Knight Frank Global Residential Cities Index.
According official Government data the Indian economy grew by 8.2% in the year to the first quarter of 2018 and this is filtering through to housing demand and consumer confidence, says the index report.
The data also shows that Budapest, Rotterdam and Amsterdam are Europe’s frontrunners with price growth of 15%, 14% and 13% respectively. But Turin is the city with the weakest rate of annual growth globally.
‘Domestic and international buyers alike have recognised Budapest’s comparative value whilst Dutch house prices, which were falling up until 2013, have undergone a sharp correction,’ said Kate Everett-Allen, head of international research at Knight Frank.
Overall, of the 150 cities monitored, some 123 or 82% recorded a rise in residential prices during the year to June. Asia is the strongest performing world region, on average prices ended the year to June 5.1% higher across the Asian cities tracked.
In second place was North America registering 5% growth. Long term strong performer, Hong Kong, registered a marginal slowdown in annual growth although prices in the year to June still accelerated 15%.
The report points out that at the end of September, Hong Kong’s banks raised prime rates for the first time in 12 years, which is feeding through into mortgage payments, influencing Hong Kong borrowers.
Of those countries where a rate rise has taken place in 2018, a number have a significant gap between their strongest and weakest performing city such as 16% in Canada, 11% in the UK, and 10% in the US).
‘With some already registering negative annual growth, we expect any further tightening of monetary policy to be slow and steady. In some cities, the performance of the mainstream and prime market is diverging,’ said Everett-Allen.
‘A lack of prime supply is cushioning the top segment of the market in Sydney and Dubai where annual prime price growth is closer to 5.7% and down 0.8% respectively. Elsewhere, tax changes targeting foreign buyers or higher stamp duty such as in Vancouver, Toronto, and Hong Kong, and has led to slower growth at the luxury end of the market,’ she added.
Article from propertywire