Global Prime property in the world’s cities is performing admirably, according to new research. Of the 32 prime residential markets tracked by Knight Frank’s index, 27 recorded positive annual price growth in the year to June 2014, up from 21 a year earlier. Jakarta and Dublin stand out due to their stellar performances, ending the year to June 27.3% and 23.5% higher respectively. However, in both cases the rate of growth has slowed in the second quarter.
In Dublin’s case, the rate of growth slowed, although given Ireland’s improving economic landscape and the expiry of Ireland’s capital gains tax incentive at the end of 2014, the agent expects prime prices will continue their upward trajectory in the second half of the year.
In Dubai, prime prices rose by 6.3% in the year to June.
North America is also seeing considerable growth in its cities: This trend has continued in the second quarter, say Knight Frank, with New York, Los Angeles, Miami and San Francisco all recording double-digit annual growth in the 12 months to June.
With the gradual withdrawal of stimulus measures in the US and the UK, the prospect of rising interest rates and the continual enforcement of cooling measures across much of Asia, it would be logical to assume that overall performance would be weakening, the report says, whereas in fact things are looking up. ‘The index’s annual increase of 6.2% in the year to June is above the long-run average of 4.6% recorded 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 report concludes.