Jakarta and Dublin lead prime property boom | 12 August 2014
Luxury residential property prices continue to rise across the globe, with Jakarta and Dublin performing particularly strongly.
According to the tracking of 32 prime residential markets by Knight Frank’s Prime Global Cities Index, cited by propertywire.com, 27 recorded positive annual price growth in the year to June 2014 – up from 21 a year earlier.
In particular, Jakarta and Dublin performed extremely well, ending the year to June 27.3 per cent and 23.5 per cent higher respectively.
Furthermore prime prices rose by 6.3 per cent in Dubai. With supply at the prime level in Dubai looking tight, prices are expected to strengthen over time.
Looking at Europe and Asia
Europe, however, appears to lagging behind in the index table. Rome has seen values unchanged in the 12 months to June while prices in Zurich, Paris and Geneva have fallen by 0.3 per cent, 2.5 per cent and 4.3 per cent respectively.
Elsewhere in Asian markets, Singapore prime prices are down 7.7 per cent while Hong Kong prices are down by 2.9 per cent. Fortunately Tokyo prices are up by 0.2 per cent, whilst Mumbai is up by 0.8 per cent and Delhi by 1.8 per cent.
Making waves in North America
The improvement of prices in North America looks to be a high point in the Global Cities Index.
Kate Everett-Allen, head of International Residential Research at Knight Frank, commented on the US’ impressive growth to worldpropertychannel.com: “This trend has continued in the second quarter with New York, Los Angeles, Miami and San Francisco all recorded double-digit annual price growth, placing them in the top 10 rankings.”
The prospect of rising interest rates, withdrawal of stimulant measures in the US and the UK as well as the enforcement of cooling measures across Asia ensured the index looked set to be weak this quarter.
Not so, claims Everett-Allen: “The index’s annual increase of 6.2 per cent in the year to June is above the long-run average of 4.6 per cent since Lehman’s collapse in the third quarter of 2008, underlining the extent to which prime property has become a favoured asset class globally.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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