World’s most expensive houses suffer growth slowdown as London slump persists
Prices for the world’s most luxurious houses have slipped to their lowest annual levels in nearly six years, as stricter regulations and growing political uncertainty deter wealthy buyers in a number of cities.
Prime property prices across the globe climbed 2.7 per cent in the last 12 months, marking the slowest rate of annual growth in more than five years, according to new Knight Frank data released today.
Cooling measures in fast-growing Asian economies have largely driven the slowdown in expensive properties, with the pace of prime price growth weakening in cities such as Singapore and Hong Kong in the third quarter of 2018.
The rate of growth has declined for three consecutive quarters and has now reached its lowest rate since the final quarter of 2012.
Meanwhile, the figures also suggested fresh evidence of a slump in London’s luxury properties, with values dropping 2.9 per cent in the last 12 month.
However, prices in Edinburgh’s booming high-end residential market grew 10.6 per cent in the year to the end of September, making it the second fastest-growing city on the index.
Singapore landed the top spot, with growth surging 13.1 per cent from the third quarter of 2017 to the third quarter of this year.
Knight Frank said 2018 marked a watershed for its prime global cities index: “The overall narrative of lower growth, which we predicted in 2017, has materialised…A combination of uncertainty surrounding Brexit, rising interest rates across major economies, a tighter regulatory environment and the remnants of high supply in some markets is impinging on price growth.”