_Guangzhou leads luxury residential price index

Our Prime Global Cities Index, which tracks the movement of luxury residential prices across 41 cities around the world, climbed 4.2% in the year to September 2017, with the Chinese city of Guangzhou leading our annual rankings.

Kate Everett-Allen November 07, 2017

Results for Q3 2017

Guangzhou leads the annual rankings despite the wider slowdown across China’s first tier cities
Cities in the Asia Pacific region account for five of our top ten annual rankings
Madrid, Paris and Berlin are outpacing their European counterparts
Toronto saw its annual prime price growth almost halve between June and September 2017
Australasia (10.7%) is the strongest-performing world region on an average basis, Russia & the CIS the weakest (-8.4%)

Despite Guangzhou’s stellar performance, the overall narrative across China is one of slower price growth. Both Shanghai and Beijing saw their rate of annual price growth decline significantly compared with last quarter and Guangzhou’s index increased just 6.8% in the last three months compared with 36.3% in the last 12 months.

Cities in Asia Pacific account for five of our top ten rankings, with Seoul (11.2%), Sydney (11.0%) and Melbourne (10.4%) joining Guangzhou and Shanghai.

Madrid proved Europe’s strongest-performing luxury residential market, with prices ending the year to September 11.9% higher. Attracting strong interest from Latin America, in particular Venezuela, alongside the delivery of high-specification new developments, the city’s luxury residential stock is now firmly on the radar of global investors.

Paris (11.3%) and Berlin (7.3%) are hot on Madrid’s heels. With typical prime prices averaging €18,000 per sq m and €12,000 per sq m respectively, buyers – both domestic and international – are now recognising the comparative value in such markets whether looking for an investment or second home.

Elsewhere in Europe, Zurich, Vienna, Geneva and London all registered price declines over the 12-month period.

Average prices in prime central London were down 4.6% in the year to September, the most modest decline in nearly a year.

US cities remain firmly mid-table this quarter, with San Francisco (5.5%) out in front. A steady economy and a weaker dollar, compared with 12 months ago, is helping to support demand and hence prices.

Download the Prime Global Cities Index to view the full rankings