Worldwide luxury housing market nosedives
A senior figure has predicted a return to luxury home price growth this year despite a mini-crash around the globe in the first three months of this year
Property consultants Knight Frank found that the average price of prime residential units fell by 0.4 per cent in the first quarter of 2013.
Tokyo, Paris and New York all saw 10 per cent falls in luxury home values between the end of December 2012 and the end of March 2013.
Madrid, Singapore and Tel Aviv saw falls of between 5 and 8 per cent, while Geneva, Kiev, Miami and San Francisco saw values drop by smaller amounts.
The long-term trend remained positive, however, with a 3.6 per cent rise in luxury property prices since March 2012.
Jakarta and Bangkok led the way with growth of 38 per cent and 26 per cent respectively over the past 12 months.
Knight Frank associate partner Kate Everett-Allen said: ‘The measures aimed at cooling residential price growth in Jakarta and Bangkok have been less stringent than those applied across many neighbouring Asian cities, allowing new middle class wealth to fuel demand and push prime prices higher.’
Everett-Allen added that she expected growth in prices to return later in the year.
‘In each year since 2009, our Prime Global Cities Index has recorded its weakest rate of growth in the first quarter,’ she said.
‘We expect stronger growth to emerge in the second quarter as buyers continue to search for luxury bricks and mortar as a way of sheltering their assets from the Eurozone’s continuing turmoil and the fragile global economy.’
Only two European cities made the top ten ranked by global price growth, while seven were listed in the bottom 10 of those surveyed.
A typical prime property is now worth a fifth more than it was in the second quarter of 2009 when the Knight Frank index hit its post-Lehman Brothers low.