Singapore, Tokyo and Madrid Lead Global Prime Markets in First Half of 2018
While global luxury prices have been growing at a slower pace during the first half of 2018, Singapore, Tokyo and Madrid are bucking the trend, according to a Knight Frank report released Wednesday.
Across the 20 global cities that the London-based global real estate consultancy tracked, the average prime prices edged up 4.2% in the first six month this year, compared to the annual rate of 6% last year, according to a mid-year update of Knight Frankâs Wealth Report, which was published in March.
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However, Singapore, Tokyo and Madrid have seen a strong resurgence in growth, with luxury prices increasing 11.5%, 9.4%, and 10.3%, respectively, on an annual basis by the end of June.
In Singapore, rising foreign demand and high land value s have led to higher prices for new developments. Tokyoâs resurgence is attributable to a few factors, including Japanâs solid economic fundamentals, the cityâs relative value compared with Hong Kong and Singapore, and investment ahead of the 2020 Olympic Games, according to Knight Frank.
In Madrid, price growth is also linked to Spainâs improving economy and foreign buyersâ interest in vacation homes in the city.
Overall, the mid-year analysis of 20 selected prime markets confirms the general trend demonstrated in the 100-City Prime International Residential Index, part of Knight Frankâs Wealth Report also published in March: That prime prices in European cities continue to strengthen while those in Chinese top-tier cities cool down.
U.S. cities registered positive growth in the year to June, with Los Angeles leading the pack at 7.8%.
|Prime Residential Prices in H12018|
|Source: Knight Frank|
More: London Sees Boost in Luxury Home Sales
London Schools Are a Boon to the Property Market
In the mid-year update, Knight Frank also took a deeper look at Londonâs prime residential markets, especially the demand arising from international buyers seeking education in the city.
According to Knight Frank estimates, approximately Â£2 billion is invested in Londonâs prime hous ing market each year by parents looking to secure accommodation while their children are at school in the capital city.
Most of these buyers are from Hong Kong, Chinaâs mainland and Russia, according to a survey conducted for Knight Frank of over 130 education consultants, teachers, administrators and other education and real estate advisers.
The vast majority of respondents (66%) believed that the U.K.âs vote to leave the E.U. had no impact on international buyersâ decision to buy properties around London schools, the survey found.Source: Google News Singapore | Netizen 24 Singapore