Foreign Property News | Posted by Shwe Zin Win
Hefty cuts to prime residential price growth foreseen for Hong Kong, Mumbai and Dubai this year, says Knight Frank.
Prime prices worldwide are succumbing to the downward pressures of property market regulations, rising finance costs, geopolitical uncertainty, and a high volume of new prime supply, according to Knight Frank’s Global Outlook 2019 report.
The consultancy’s Prime Global Cities Index, which tracks prime prices across 43 cities worldwide, is posting its slowest positive growth rate since 2012.
Of cities tracked by the index, the cities of Hong Kong and Mumbai will lead the slowdown with prime home prices forecast to drop by 10 percent and 5 percent, respectively, in the year to December 2019. Dubai is also expected to see prime home prices drop by 2.4 percent.
Conversely, Madrid, Berlin and Paris is leading pricing forecasts, with a growth of 6 percent posited over the period. Prices in Singapore and New York City are meanwhile expected to hold steady from last year’s prices.
“Luxury house prices are now a distinct asset class, a safe asset viewed by the wealthy.” Knight Frank analysts wrote.
Markets like Hong Kong, Singapore, Vancouver and New Zealand are expected to slip down the rankings, the consultancy added.
Ref: Propertyreport
