FIRST WITH THE NEWS: Bangkok luxury property prices are still growing. That’s the good news. The not-so-good news is the rate at which they’re climbing is slowing.
In its Prime Global Cities Index focusing on Q3 data, real estate agency Knight Frank monitored and compared the performance of prime residential prices across 41 key global cities.
The real estate firm describes prime property as the top 5 percent of the housing market in each city it looks at.
Year-on-year, Bangkok luxury property prices in Bangkok have grown by 2.7 percent, according to Knight Frank. In the last six months that rate has dropped to 2.4 percent, whilst in the last three months the rise was recorded at 2.1 percent – a small decline but a decline nonetheless.
Elsewhere the Chinese city of Guangzhou topped the rankings with a 36.3 percent rise in prime property prices in the 12 months ending September 2017.
Both Shanghai and Beijing saw their rate of annual price growth decline significantly compared with last quarter, and Guangzhou’s index increased just 6.8 percent in the last three months.
Cities in Asia Pacific account for five of the top ten rankings, with Seoul (11.2 percent), Sydney (11 percent) and Melbourne (10.4 percent) joining Guangzhou and Shanghai.
Madrid proved Europe’s strongest-performing luxury residential market, with prices ending the year to September 11.9 percent higher.
Attracting strong interest from Latin America, particular Venezuela, alongside the delivery of high-specification new developments, the city’s luxury residential stock is now firmly on the radar of global investors.
Paris (11.3 percent) and Berlin (7.3 percent) are hot on Madrid’s heels.
Elsewhere in Europe, Zurich, Vienna, Geneva and London all registered price declines over the 12-month period.
Average prices in prime central London were down 4.6 percentin the year to September, the most modest decline in nearly a year.
U.S. cities remain firmly mid-table this quarter with San Francisco (5.5 percent) out in front.
Bangkok was ranked in 19th place by yearly prime property price rises of the 41 surveyed cities, but the big question is how long will that last?