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Cape Town gets Top 10 spot for soaring luxury property prices

Aug 09 2017 08:47

Cape Town - The Mother City ranks 9th out of 41 on the latest Knight Frank Prime Global Cities Index for the second quarter of 2017.

The index tracks the movement in luxury residential prices across 41 cities worldwide. It looks at the top 5% of the housing market in each city. Overall the index climbed 4.4% in the year to June.

According to Knight Frank, its Prime Global Cities Index enables investors and developers to monitor and compare the performance of prime residential prices across key global cities.

The index is compiled on a quarterly basis, using data from Knight Frank’s global offices.

According to the latest index, prices of prime property in Cape Town showed 9.2% annual growth in June 2017. Prices showed 6.5% growth over the first six months of the year and 4.5% growth in the second quarter of the year. The general market direction for Cape Town is described as upward.

The top-ranking city on the latest index is Guangzhou, a port city in China which showed 35.6% growth in luxury property prices over the 12-month period between June 2016 and June 2017.

Chinese cities led the index for three consecutive quarters, but their dominance looks to be coming to an end as their rate of growth slows following the latest round of cooling measures, according to the index report.

READ: 7 'deadly sins' property investors should avoid

Toronto came in second with 20.7% annual price growth, followed by Seoul (19.9%), Shanghai (19.7%), Beijing (15%), Sydney (11.5%), Madrid (10.7%) and Berlin (9.7%).

Cape Town beats cities like Melbourne (10th), Paris (11th), Hong Kong (12th), Stockholm (13th) and Dublin (14th). Los Angeles came in 17th place, New York 22nd, Mumbai 24th and Monaco 27th.

Overall, 28 of the 41 cities (68%) recorded flat or rising luxury prices over the 12-month period - a figure that has remained largely static in last two years, according to the report.

The report further states that cities in Europe and Australasia are well represented within the group that has seen a rise in their annual rate of growth compared with last quarter.

The report found that, although prices in prime central London fell 6.3% in the 12 months to the end of June, the quarterly figure of -0.3% was the lowest quarterly fall recorded since early 2016.

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cape town  |  sa economy  |  property

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