NYC luxury resi prices were stagnant in Q1: Knight Frank

The city’s high-end sector increased just 2% from last year

New York /
May.May 09, 2017 07:00 AM

Prices for New York City’s most expensive pads remained flat in the first three months of the year, while high-end home prices exploded in competing global cities, according to Knight Frank’s Prime Global Cities Index.

The index, which follows luxury residential property prices across 41 international cities and was released Monday, climbed 4 percent year-over-year in the first quarter of 2017. New York City came in at 22 on the index ranking, and saw an increase of just 1.7 percent from last year. In March, Knight Frank’s annual wealth report found New York City luxury prices slowed significantly in 2015,  and that cities like Vancouver and San Francisco are now outpacing the Big Apple.

In London, a city often seen as the Big Apple’s biggest competitor for expensive home purchases, luxury prices fell by more than 6 percent. However, according to the report, quarterly growth was at its highest rate since May last year, indicating prices in the city are stabilizing.

Chinese cities saw the greatest increases. Guangzhou topped the ranking, with prices there jumping by more than 36 percent from last year. In Shanghai, prices increased almost 23 percent, while Beijing’s luxury sector saw an increase of 20 percent. Home prices across China, a country which produces 100,000 millionaires annually, according to 2017’s Knight Frank’s Wealth report, have surged in the past year, fueling concerns the market is overheated.

Toronto, which placed third on the ranking, saw its luxury prices increase by more than 22 percent year-over-year, according to Knight Frank. In particular, the index showed cities with high numbers of technology businesses saw significant jumps. Seoul’s luxury prices, for example, grew by 18 percent, while Stockholm’s prices went up by 11 percent. Berlin and Melbourne’s high-end residential prices both jumped by 9 percent. The cities of Hong Kong (5%) and Singapore (4%) both rose up in the rankings, following years of minimal growth.


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)
For 15 years, David Koch lived at the world’s “richest building”
For 15 years, David Koch lived at the world’s “richest building”
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Single-family rentals are increasingly seen as a more realistic alternative to ownership, given the hot housing market and income inequality. (iStock)
Single-family rentals soaring in hot housing market
Single-family rentals soaring in hot housing market
(Getty)
Manhattan buyers shun fixer-uppers
Manhattan buyers shun fixer-uppers
Sheldon Solow and the Hamptons estate (Getty, Douglas Elliman)
Sheldon Solow’s Hamptons home gets $10M price cut
Sheldon Solow’s Hamptons home gets $10M price cut
Investors home purchases rose to 15 percent in the second quarter, a year-over-year increase of 3.9 percentage points. (iStock)
Investors take bigger bite of US housing, and pay less
Investors take bigger bite of US housing, and pay less
Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...