Australian cities top global price growth list


Australian cities top global price growth list

Posted on Thursday, November 05 2015 at 3:59 PM

Two Australian cities have made the top five in Knight Frank’s Prime Global Cities Index for the year to September 2015.

The index has Sydney coming
in second, with an annual price gain of 13.7 per cent for the year – one of
only three international cities to record double-digit growth.

Melbourne filled out the top
five with a 9.4 per cent increase in values.

Michelle Ciesielski, a
director at Knight Frank, says their appearance isn’t surprising.

“One factor is the lower
Australian dollar, which has influenced the number of ex-pats buying back in
Sydney and Melbourne, taking advantage of buying a prime property in these
ideal conditions – ready for when they eventually return to Australia.”

Ciesielski says there’s also
been increased interest from overseas buyers looking to secure a trophy asset either
on the waterfront or in one of the cities’ more exclusive suburbs.

She believes growth is also
being driven by the limited supply of quality stock in sought-after positions
such as along the harbour, too.

“However, we are expecting
more higher-density prime stock to come to the market in Sydney with the
completion of Barangaroo and the Circular Quay redevelopment.”

The Knight Frank Prime Global Cities
reflects the top five per cent of housing in the wider market
in each city.

The highest gains globally were in
Vancouver, Canada, with a rise of 20.4 per cent for the year.

Shanghai was the other big mover at
10.7 per cent, while Jakarta reflected the same result as Melbourne with 9.4
per cent.

The overall results reflect a
slowing in growth among prime markets according to Kate Everett-Allen, a
partner in residential research at Knight Frank.

“The index’s annual rate of growth
has slowed significantly from seven per cent two years ago to 1.9 per cent.”

Seventy-three per cent of cities recorded
positive annual price growth in the year to September, down from 91 per cent
two years ago.

Singapore was the weakest performing prime
market tracked by the index for the seventh consecutive quarter, but the rate
of annual decline has slowed from -15.2 per cent at the end of Q2 to -7.9 per
cent this quarter.

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