KUALA LUMPUR (April 14): Asia ranked the second best performer after Australasia in Knight Frank’s Prime International Residential Index (PIRI) with luxury home price in Asia rising 5.1% year-on-year in 2016.
PIRI tracks the value of luxury homes in 100 key locations around the globe.
According to a media release by Knight Frank, among the Asian countries, Chinese cities have catapulted themselves up the rankings with Shanghai (27.40%), Beijing (26.80%) and Guangzhou (26.60%) claiming the top three slots, all exceeding 26% year-on-year price growth in 2016.
“Shanghai has climbed two notches from third to take the top ranking in the index, displacing Vancouver (14.5%) down to 7th place; Beijing and Guangzhou, both with significantly lower growth during the two previous years have been catapulted into the top three reflecting the strength of the Tier-1 Chinese market in 2016,” the report showed.
However, in Southeast Asia, a mixture of sluggish economic growth, existing cooling measures and significant supply continued to contribute to weak performances in Singapore and Kuala Lumpur; while in Jakarta and Bangkok, two of the region’s previous strong growth markets, have seen a slowdown in activity.”
Among all the regions, Australasia was the strongest performing world region with prices rising by 11.4% year-on-year. Auckland leads the way for Australasia with a prime price rise of 16%. Sydney and Melbourne also showed strong growth with increases of 9.30% and 8.80% respectively, year-on-year.
“The strong performance of Australasia’s prime residential market continues to reflect, among other aspects, the liveability and lifestyle conditions offered by many of the Antipodean cities. Partly supporting this has been strong interest from Asia, with our Attitudes Survey notably showing 48% of Malaysian UHNWIs likely to own a home in Australia. The strong demand in these cities fuelled by population growth and tight supply is likely to underpin performance going forward,” said Knight Frank Asia Pacific head of residential for Asia-Pacific Sarah Harding.
On average, luxury home values rose globally by 1.4% in 2016, compared with 1.8% in 2015.
The report also showed Monaco, Hong Kong, New York and London continue being the top four most expensive prime residential markets.
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