Worldwide, Urban Home Values Are Outperforming
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Worldwide, Urban Home Values Are Outperforming

Worldwide, metro areas saw an average price growth of 9.8% in the second quarter.

By V. L Hendrickson
Tue, Oct 5, 2021Grey Clock 2 min

Worldwide, metro areas saw an average price growth of 9.8% in the second quarter, outpacing the 9.2% average growth registered across 55 countries and territories, according to Knight Frank’s Global Cities Index, released Monday.

About 38% of the 150 cities tracked in the report registered a rise in prices of 10% or more year over year, the data showed.

“Predictions of ‘the death of the city’ now seem a distant memory,” Kate Everett-Allen, Knight Frank’s head of international residential research, said in the report.

Halifax, in Nova Scotia, saw the biggest growth, with prices 30.8% higher in the second quarter  than they were in the same time period in 2020. Izmir, Turkey, and Seoul, South Korea, tied for the No. 2 spot with annual price growth of 30%, followed by Phoenix, with 29.3%, and Moscow (28.8%). 

Of the 57 cities that saw a double-digit price growth, only one was in mainland China— Guangzhou, which had an 11.4% jump in the second quarter, compared to the same time last year, the report found.

“Two years ago, six Chinese mainland cities fell into this bracket,” Ms. Everett-Allen continued. “The scale of the divergence in U.S. and Chinese mainland house prices is significant. We track 15 cities in both markets and on average those on the Chinese mainland saw prices rise by 5.6% over the 12-month period whilst U.S. cities saw prices jump by 19.6%.”

Eleven cities registered negative price growth, with Venice, Italy, seeing the biggest slip, 6.3%, the data showed. Kolkata, India, and Dubai were also at the bottom of the list, with prices down 6.3% and 5.2%, respectively.

However, Ms. Everett-Allen noted that the boom could be coming to an end.

“After 18 months of inertia, governments with heated housing markets are formulating their policy responses,” she said, noting that interest rates have already risen in Norway and New Zealand, with the U.S. and the U.K. set to follow suit. “We expect the index rankings to look very different in 12 or even six months’ time.”

Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication:  October 4, 2021.


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Thu, Aug 11, 2022 < 1 min

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.