Property prices in London have exploded over the last few years but there are a number of cities that are experiencing such a massive surge in growth that they make prices in Britain’s capital look paltry.
In fact, there are some cities across the globe where prices have rocketed by over 25 percent in the last 12 months, according to Knight Frank‘s latest Prime Global Cities Index report.
This is the case for prime residential properties — which refers to the top 5 percent of the wider housing market in each city.
Four of the top cities recorded double digit price growth, which Knight Frank put down to low supply, combined with record-low interest rates.
Prime prices in the top 35 cities increased an average of 3.6 percent in the the twelve months up to March 2016, but London didn’t make the top 5 — prime residential prices in that city only increased 0.8 percent.
5. Cape Town, South Africa — 6.9 percent. Prices may have jumped over the last year but Knight Frank’s ranking shows that price growth is slowing.
4. Melbourne, Australia — 12.1 percent. Prices in the city have shot up despite the country imposing a new fee for foreign buyers.
3. Sydney, Australia — 12.3 percent. Knight Frank said “Australasia proved the world’s hottest world region in the year to March 2016 with prices rising 12% on average.”
2. Shanghai, China — 20.3 percent. “Record-low interest rates and cheap finance fuelled demand in Shanghai. However, in March the government tightened mortgage lending rules which is likely to result in slower growth in the second quarter,” said Knight Frank.
1. Vancouver, Canada — 26.3 percent. The city has led Knight Frank’s rankings for the fourth consecutive quarter due to “severe lack of supply is creating an upward pressure on prices.”