Global house prices recorded their lowest increase since early 2012 in the third quarter of 2013, according to new figures.
The latest Knight Frank Prime Global Cities Index reveals that average property prices in the 27 markets covered by the index rose by 1.2 per cent in the third quarter of 2013 compared to the previous quarter.
“The slowdown can partially be attributed to weaker sales activity in the summer months and this year to the timing of Ramadan,” noted Kate Everett-Allen, international residential research, in the report.
Beijing recorded the highest property price gains in the three months to September, with prices rising by 7.9 per cent, followed by Tokyo (4.7 per cent) and Bangkok (4.3 per cent).
On an annual basis, Jakarta leads the way on house price growth, with property values there growing by 27.2 per cent, placing it ahead of Dubai (21.8 per cent) and Beijing (16 per cent).
The Asia Pacific and Middle East regions dominate the latest index, with countries from these areas filling seven of the top ten positions in terms destinations with the highest annual price growth. New York (11.1 per cent), San Francisco (10.9 per cent) and London (7 per cent) are the only cities not from these regions ranked in the top ten.
The Index also shows that many European countries are finally starting to recover from years of downturn in the property market, with only St Petersburg in Russia recording property price declines (-3 per cent) in the latest quarter.
“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, the appetite amongst the world’s wealthy for luxury bricks and mortar is growing,” Everett-Allen said.
Overall, the prime global cities index is now 31 per cent higher than at its low during the second quarter of 2009.
Miami recorded the biggest property price decline in the three months to September, with prices there falling by 5.4 per cent. However, prices in the American city are still 4.7 per cent higher than they were a year ago.
Article published 15th November 2013