Wealthy homebuyers are choosing these global cities

by Steve Randall on 18 Nov 2019

The luxury real estate market slowed in the third quarter of 2019 according to a new global index.

The Knight Frank Prime Global Cities Index shows that 76% of the 45 cities included saw static or rising prices in Q3 2019 compared to 12-months earlier.

The average annual prime price growth was 1.1% while the extended period of economic growth and wealth creation should have produced stronger gains.

Leading the pack is Moscow, where prices are up 11% during the 12 months to September 2019 amid stronger demand and several high-end projects being completed. Quarter-over-quarter growth was 1.3%.

Frankfurt (10.3%), Taipei (8.9%), Manila (7.4%), and Berlin (6.5%) complete the top 5 cities for luxury price growth.

In North America, Toronto is the best performer, in 19th place with growth of 2.2% year-over-year but it declined 1.4% quarter-over-quarter.

Miami (in 26th place with 1.3% year-over-year and 0.6% quarter-over-quarter growth), is the only other North American city to post both year-over-year and quarter-over-quarter growth.

Los Angeles (33rd place) has growth of 0.2% compared to 12 months earlier but declined 1.0% from Q2 2019; San Francisco (34th) saw no annual growth and a 1.5% quarterly decline.

New York, Vancouver decline
The only other two North American cities included saw luxury residential prices slide in the third quarter.

New York (42nd) posted a decline of 4.4% year-over-year and 1.4% quarter-over-quarter; and Vancouver (44th) saw prices slide 10.2% year-over-year and 1.1% quarter-over-quarter.

The worst performer among all 45 cities included was Seoul with a 12.9% annual drop and a 1.5% quarterly decline.

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