Global Lux Home Price Growth Dampened in Q2 2019

The World Property Journal’s Michael Gerrity reported that Knight Frank’s latest Prime Global Cities Index indicated that global luxury home prices increased only +1.4% this year to June 2019. This +1.4% increase in worldwide luxury home prices is significantly lower than the 4-year average of +3.8%, despite an effort by policy makers generating a wave of interest rate cuts in hopes of stimulating economic growth.

Knight Frank’s key findings in its latest Prime Global Cities Index included the following:

• Berlin had the strongest rate of annual price growth of all cities included in the
• 3 percentage points separate the strongest and weakest performing cities.
• 78% of all Index cities registered a prime price increase in luxury homes over a 12-month period.
• 76% (35 of 46) cities registered prime price growth in this year to June 2019.
• Madrid and Paris (+5.2% and +5.0% annual growth respectively) had variations in price growth at neighborhood levels.
  • In Madrid, Chamber and outer non-prime districts were strong.
  • In Paris, the Left Bank (6^th and 7^th arrondisements) “paused” after price growths of +11% in 2017 and the 18^th arrondisement continued its upward price trajectory.
• China also had variations in price growth at neighborhood levels.
  • Beijing and Guangzhou showed increases of +4.5% and +2.7% respectively.
  • Hong Kong showed flat growth of 0.0% due to concerns over the trade war. 

Top 10 Cities in Terms of Global Cities Price Growth

1. Berlin +12.7%
2. Frankfurt +12.0%
3. Moscow +9.5%
4. Manila +6.2%
5. Geneva +6.0%
6. Madrid +5.2%
7. Paris +5.0%
8. Zurich +4.5%
9. Beijing +4.5%
10. Delhi +4.4%

Closer to home, luxury home price growth in Miami, San Francisco and Los Angeles increased +1.5%, +1.2% and +0.7% respectively.

Bottom 10 Cities in Terms of Global Cities Price Growth

1. Vancouver -13.6%
2. Istanbul -9.9%
3. Auckland -7.5%
4. Nairobi -6.7%
5. Dubai -6.0%
6. London -4.9%
7. New York -3.7%
8. Shanghai -3.5%
9. Seoul -3.4%
10. St. Petersburg -1.0%

Again closer to home, luxury home price growth in Los Angeles decreased -0.7%.