Luxury property prices in the Chinese city of Guangzhou are rising faster than those in any other city in the world.
According to Knight Frank’s
Prime Global Cities Index for the second quarter of 2017, luxury prices in Guangzhou were 35.6 per cent higher than they had been in the same quarter of last year.
Toronto recorded the second highest luxury property price growth in this period, growing by 20.7 per cent in the past year.
However, while this price growth may sound impressive, it is actually down on the increases recorded by both cities in the first quarter of 2017. New regulations introduced to try and stem investment, mainly from overseas buyers, were give as the main reason behind the slowing growth.
In total, 28 of the 41 cities included in the index recorded flat or rising luxury prices over the 12-month period; a figure that has remain largely static in last two years.
“Cities in Asia, Russia and the CIS account for ten of the 17 cities that have seen their rate of annual growth decline compared with last quarter,” said Kate Everett-Allen, Head of International Residential Research at Knight Frank. “Conversely, cities in Europe and Australasia are well represented within the group that have seen a rise in their annual rate of growth compared with last quarter.”
The biggest luxury property price decreases were seen in Moscow (-11.8 per cent), followed by St Petersburg (-7.9 per cent) and Taipei (-6.5 per cent).
Meanwhile, European cities such as Madrid (10.7 per cent), Berlin (9.7 per cent), Paris (8.8 per cent), and to a degree Dublin (3.8 per cent) have seen a marked increase in their annual rate of growth compared with a year ago.
London, however, appears to have been adversely affected by last year’s Brexit vote and the uncertainty surrounding this year’s General Election. Luxury property prices in the UK capital fell by 6.3 per cent in the past year.