Prime property prices in Bangkok are rising, but new data shows the trend of rising prices in confirmed to be slowing.
In its Global Prime Cities Index for Q4 2017, published yesterday, real estate firm Knight Frank highlighted the slowdown in prices at the top end of Bangkok’s prime property market.
The agency found that during the 12 months ending December 2017, prime property prices, which is describes as being the top 5 percent of properties by price in any one city, rose by 4.5 percent year-on-year.
All good so far.
Compared with the first six months of the year, prime property prices in Bangkok rose by 4.0 percent.
Much more of a concern however, is that the quarter-on-quarter rise which Knight Frank noted as being a mere 1.6 percent.
The real estate firm ranked prime property prices in Bangkok in 19th place of their 42 surveyed global cities in this report.
The fact that Bangkok’s prime property prices are slowing should really come as no surprise to regular readers of ThailandProperty.News. We have highlighted this fact, that has been made in past months by several agencies and industry watchers.
Overall, the Index climbed 4.7 percent in the year to December 2017.
Guangzhou has retained the number one spot, which it has held throughout 2017, although its pace of growth has slowed to 27.4 percent from 36.3 percent last quarter.
European cities have been rising through the rankings, and now occupy four of the top ten spots, more than any other world region, with Asia now occupying only three.
Frankfurt, Paris and Madrid all registered double-digit annual price growth in 2017. Cape Town sits in second place behind Guangzhou. Here, luxury residential prices ended the year nearly 20 percent higher as supply constraints, along with rising demand from other parts of South Africa, boosted price growth.
Prices in prime central London dipped 0.7 percent in 2017 on an annual basis; this represents the most modest rate of decline recorded since June 2016.
The introduction of a foreign buyer tax rate across parts of both Toronto and Vancouver explained their slower rates of price inflation. Annual growth stood at 8.4 percent and 3.5 percent respectively at the end of 2017, down from 15.1 percent and 14.5 percent a year earlier.
“We expect the Index’s rate of growth to moderate in 2018,” the report concluded.