Based on data produced by Knight Frank, the Global Residential Cities Index which tracks the performance of average house prices across 150 cities worldwide, shows that prices rose by 6.9 per cent in the year to March 2017, the last time it reached this figure was in the final quarter of 2013.

China dominates the rankings

“Chinese cities continue to dominate the top rankings of urban house prices across 150 cities worldwide.” The report said. “However, Shanghai and Beijing, previously in third and sixth position, have slipped down the rankings to 13th and 12th respectively, outpaced by the second tier cities of Wuxi and Nanjing, both home to a population of more than 6 million.”The report suggested, “Tighter regulations in the form of higher loan-to-value ratios and limits on second home purchases are now filtering through into China’s house price indicators. The average price across all 20 Chinese cities tracked by the index declined from 19.2 per cent last quarter to 15.9 per cent this quarter.”The top ten is led by Chinese cities, occupying seven places, the remaining three positions are filled by Toronto, Hamilton and Oslo.Prices in Toronto increased by 24.8 per cent in the year to March, but a 15 per cent foreign buyer tax introduced in April suggests the city may follow Vancouver’s path further down the rankings later this year. According to the latest figures, the number of residential sales in Toronto fell 20.3 per cent in May compared with a year earlier.

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“Vancouver, where a foreign buyer tax was introduced in August 2016 and then moderated to exclude those with work permits, has seen annual price growth decline from 25.8 per cent in August 2016 to 12.2 per cent in March 2017.” Said the report.Oslo at 21 per cent remains Europe’s strongest performing city for the second consecutive quarter, but the Icelandic capital, Reykjavik, is not far behind. Prices here have surged 18.3 per cent in the year to March 2017 up from 6.3 per cent a year earlier. This result tallies with the latest Global House Price Index in which Iceland ranked highest among 55 countries.

Netherlands key centre of growth for Europe

The report said, “The Netherlands is emerging as a key centre of growth.” The country’s four
largest cities – Amsterdam, Rotterdam, Utrecht and The Hague – all saw price growth in excess of 10 per cent in the year to March 2017. Some southern European cities – Barcelona at 9.9 per cent and Lisbon 9.6 per cent – are also moving up the rankings.Seattle at 12.2 per cent is the highest-ranking
 US city. “A booming tech industry set against an historic structural undersupply of housing is fuelling price growth here.” The report said. The overall performance of the 20 US cities tracked by the index is improving, a trend expected to continue throughout the remainder of 2017, despite the prospect of one further interest rate rise.For related news and features, visit our Residential Property section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

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