Sydney squeezed in-between London and Vancouver price growth: Knight Frank global cities index

Prime residential prices in key cities worldwide rose by 0.8% on average in the first quarter of 2014, the slowest rate of growth since Q3 2012.

The Knight Frank Prime Global Cities Index tracks the price performance of 32 luxury residential markets.

Closer analysis shows the first quarter of the year has been the index’s weakest performing quarter in two years.

The first quarter, for many European and US cities, corresponds to the winter months where sales activity is sluggish and price movements slower.

The report noted in much of Asia it also marks a traditional low season as Chinese New Year sees sales activity decline.

In addition, tax changes (CGT, VAT etc) often take effect at the end of December leading to a spike in sales in the fourth quarter as buyers and vendors look to take advantage of lower rates e.g. fiscal cliff in New York in 2012.

Despite the slower quarterly rate of growth, the Prime Global Cities Index rose by 6.1% on an annual basis, up from 4.8% a year ago suggesting the overall trend for luxury prices continues to follow an upward trajectory.

Jakarta tops the rankings but Dublin saw the second highest rate of quarterly growth, with prime prices ending the first quarter 5.6% higher.

Last year marked a turning point for Dublin’s upmarket residential areas such as Dalkey and Ballsbridge. Since then luxury prices have risen around 24% but prices remain 35-45% below their pre-crisis peak.

The full rankings and analysis is at The Prime Global Cities Index.