Prime property prices around the world saw their weakest annual rate of growth for almost six years – just 2.6 percent.
The Prime Global Cities Index published by real estate firm Knight Frank compares prices for the top 5 percent of housing markets in key cities around the world.
The data for Bangkok’s prime property sector is somewhat mixed.
During the 12 months ending June 2018 the firm noted that prime property prices in Bangkok had risen by 3.4 percent.
During the six months ending June 2018, it said prime prices had dropped 0.6 percent however, during the second quarter – from April until June 2018 – Bangkok’s prime prices were reported to be up by 1.4 percent.
Looking solely at Q2, Bangkok’s 1.4 percent prime property price rise was ahead of Jakarta, Kuala Lumpur and even London – where prices remained static.
Knight Frank said that the decline in the overall performance of the Index was not due to a rising number of cities registering an annual decline.
Instead, it said that the weaker growth is due to the top performing cities rising more slowly.
During Q1 seven cities registered double-digit annual price growth but during Q2 only three – Guangzhou (11.9 percent), Singapore (11.5 percent) and Madrid (10.3 percent) rose by more than 10 percent.
Guangzhou lead the rankings with Beijing (7.3 percent) and Shanghai (3.3 percent) in 10th and 22nd place respectively.
The recent decision by Chinese authorities to scale back a major housing subsidy programme is expected to dent sales volumes in second- and third-tier cities, but prime prices in first-tier cities are expected to see steady growth during the coming year, according to Knight Frank.
Singapore rose up the annual rankings was in second place. High land bids by developers translated into higher new-build values, and in an attempt to curb price inflation the authorities announced further cooling measures last month.
Hong Kong also introduced a new cooling measure – a new vacancy tax.
Under these new rules, developers will incur a penalty of 200 percent of the annual rental value if new apartments are left unsold and empty for six months or more.
To date just two research reports have been published that cover Bangkok’s property market during the second quarter. More are expected in the coming days and weeks.
Picture: Bangkok from the air, with Saphan Taksin in the centre of the image, Thonburi to the left and Sathorn/Silom towards the right.