Annual property price growth in key global cities drops
In London, prime prices dipped 2.9 per cent in the last year as uncertainty around Brexit continued. The report says that this trend has been exacerbated by a growth in supply as more landlords attempted to sell their property following tax changes.
The index’s headline figure of 2.7 per cent growth conceals significant variations both within continents and even within countries. In Canada for example, Toronto with growth of 8.5 per cent continues to see prime prices rise in its exclusive areas of Rosedale and Yorkville. Vancouver however, sits at the bottom of our rankings as upmarket areas such as West Vancouver have seen a marked slowdown in sales and prices as a result of the raft of measures introduced in February’s Budget.
Auckland is included in the index for the first time. It says that despite a ban on the purchase of existing properties by overseas buyers from July, excluding new homes, prime prices increased 8.5 per cent in the year to September 2018.
Kate Everett-Allen, head of international residential research at Knight Frank, this year marks a watershed for the index.
“The overall narrative of lower growth, which we predicted in 2017, has materialised. The rate of growth has declined for three consecutive quarters and has now reached its lowest rate since the fourth quarter of 2012,” she said.