Sydney prestige trophy homes rise into 3rd place: Knight Frank prime global cities index
Sydney's recent expensive property sales have helped the city climb to the third place on Knight Frank's latest Prime Global Cities Index, with recent price growth pushing Sydney up from 10th spot in the prior quarter.
The global index tracks luxury residential price movements across 35 cities worldwide. Vancouver and Miami are leading global growth in prime urban residential prices.
Knight Frank's latest second quarter index also shows Melbourne ranked in 7th place in the world with its recent price growth in luxury residential properties, seeing it jump up from 11th place.
While Australia's 10.2% growth was the highest average annual increase in luxury residential asset values to June 2015, much of Asia is close behind having dominated price increases since the global financial crisis aftermath in 2008 and 2009.
Jakarta has had a 174% increase in value since the GFC, while Beijing and Shanghai are up 77% and 65% respectively.
Since the crisis, Sydney grew 27% and Melbourne 23%.
The Knight Frank Prime Global Cities Index increased globally by 2.5 per cent in the year to June 2015 across the 35 prime cities monitored.
The top performers were the cities of Vancouver, Miami and Sydney increasing by 15%, 14% and 13% respectively in the year to June 2015.
Asian cities, with the exception of Singapore and Mainland China, are rising up the rankings with seven of the top ten cities now based in the Asia Pacific region.
In the report, a breakdown by world region shows Australasia on top recording average growth of 10.2% over the 12-month period, followed by Africa at 4.1%; with Europe breaking positive territory with 0.8% growth.
“Across the globe, luxury residential values have been rising for 22 consecutive quarters, but the pace of growth has almost halved in the last year with annual growth falling from 5.2% to 2.5%," according to Knight Frank’s director of residential research for Australia, Michelle Ciesielski.
“However, Sydney prime residential property has experienced an upward trajectory with growth of 160 bps to 12.5% in the year to June 2015, with 5.8% recorded in the last three months alone.
“Second quarter growth of 2.8% for Melbourne prime saw the world’s most liveable city witness growth of 7.9% over the year; despite down 70 bps when compared to the first quarter’s annual growth.
“Knight Frank Residential Research has closely monitored those markets that have recovered best post-GFC.
"Cities demonstrating the strongest growth in prime property values have included Jakarta, Beijing and Shanghai at 175%, 77% and 65%.
“We’ve taken longer to recover than global counterparts in our prime residential markets as over this time, prime property values in Sydney grew a total 28%, whilst the Melbourne prime market values are up 24%."
