Global Luxury House Prices Increased by and Average of 2.1% from September 2022
Across the 46 Prime Global Cities studied by Knight Frank in their Prime Global Cities Index 2023 Q3 report, the average annual prices recorded had a growth rate of 2.1% over the last year, from September 2022 until September 2023.
This increase in average price growth is above the previous two quarters, as mentioned in the report. Where Q2 2023 recorded a growth rate of 1.6%, Q1 2023 had a price growth rate of only 0.2%.
Noted as the strongest growth rate recorded since Q3 2022, 67% of cities included in the Knight Frank report saw growth on an annual basis, and 63% saw positive quarterly price growth.
Furthermore, Manila rose above Dubai for the city with the largest annual price growth in the Knight Frank Prime Global Cities Index Q3 2023. Where Manila experienced a 21.2% increase in annual price growth, mostly due to strong domestic and foreign investments, Dubai’s annual home prices increased by 15.9%. Shanghai came in third place with a 10.4% annual price increase for Q3 2023, per the report.
All 5 of the weakest markets (New York, Wellington, Vancouver, Frankfurt, and San Francisco) also experienced increases in annual growth. In addition, fewer cities have experienced price declines in Q3 2023 compared to the previous quarter, decreasing from 14 cities to 11.
According to the report, even with sharply higher mortgage rates markets around the globe are showing signs of stabilization.
“The improvement in average annual house price growth will be welcomed by prime market homeowners but shouldn’t be overstated. Higher rates mean we have moved into a world of lower asset price growth – and investors will need to work harder to identify opportunities for outperformance to secure target returns.” As explained by Liam Bailey, Knight Frank’s global head of research.