Dubai home prices have soared 225% since hitting a pandemic-driven low in the third quarter of 2020, according to data released Wednesday by the property consultancy. The emirate retained the top spot in the rankings for the eighth consecutive quarter.
Taking second and third place were Tokyo with a year-on-year increase of 26.2 percent and Manila with a 19.9 percent increase. Other notable increases were China's Shanghai, up 6.7 percent, and Singapore, up 4.2 percent.
While luxury home prices in Dubai increased by nearly 50%, this segment in Hanoi and Ho Chi Minh City was not ranked. Photo: Getty Images
Ho Chi Minh City and Hanoi are not on the list.
“The influx of foreigners to Singapore, driven by the booming financial and professional services sector, has had a greater impact on the rental market than the home sales market,” the report noted, noting that the difference was partly due to a tax on foreign buyers’ purchases. Since late April, foreigners buying property in Singapore have had to pay an additional 60% stamp duty, double the previous rate of 30%.
Hong Kong home prices have fallen 1.5% over the past year as unsold inventory from new developments surged. In an effort to stimulate demand, the Hong Kong government raised the loan-to-value ratio to 70% for residential properties worth HK$15 million ($1.9 million) or less.
However, Knight Frank analysts said while the change may be welcomed by buyers, it was uncertain whether the move would “significantly boost” growth.
Other declines included New York, down 3.9%, and San Francisco, down 11.1%. Germany's Frankfurt was at the bottom of the list, down 15.1%. Overall, average annual prices rose 1.5% across the 46 markets in the Knight Frank Prime Global Cities Index.
“Global housing markets remain under pressure from the shift to higher interest rates,” said Liam Bailey, global head of research at Knight Frank.
However, he noted that the results from the index confirm that prices are supported by strong underlying demand, weak supply following the disruption of new construction projects during the pandemic, as well as the return of workers to cities.
“As uncertainty about the direction of inflation appears to have eased in recent months – price corrections in many markets are likely to be less pronounced than expected even three months ago,” Bailey added.
Source
Comment (0)