Luxury Global House Prices Rise By 4.8% In A Year

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Luxury house prices around the world are going up, according to new data.

In the first three months of 2018, the average cost of prime housing monitored in 45 major cities increased year-on-year by 4.8%, says international property consultancy Knight Frank.

The biggest rise was a 24.7% rise in Seoul, the capital of South Korea.

Six other cities had double digit property price rises – but values dipped in 11 other cities, with the largest fall in Stockholm, Sweden (-8.4%).

Home values in Rome, Italy, stood still, while they increased in 31 other cities.

Cape Town breaks the mould

Prices across the top 20 were evenly spread, with half coming from Asia and Australia and nine from Europe and North America. Cape Town, in second place, was the only African city represented.

“The world’s top tier cities – London, New York and Hong Kong – all saw annual price growth dip marginally compared with last quarter,” said researcher Kate Everett-Allen, who compiles the firm’s Prime Global Cities Index.

“In London, while the market remains sensitive to political events there is a sense of relative stability being restored.

“In New York the weaker dollar is attracting foreign interest and with Wall Street bonuses back to pre-crisis levels we expect luxury demand to strengthen. In Hong Kong prime prices accelerated 6.9% although mainstream prices continue to outperform.”

London ranked 35 with a -1.1% price fall, New York came in at 27 with a 1% rise, while Hong Kong took place 13 with a 6.9% increase.

Luxury house prices – Global Top 20

RankCityCountryChange (months)Market direction
   1263  
1SeoulSouth Korea24.7%19.9%11.6%Up 
2Cape TownSouth Africa19.3%8.6%1.4%Down 
3GuangzhouChina16.1%2.4%2.2%Down 
4BerlinGermany10.9%5.8%1.2%Up 
5ShanghaiChina10.9%5.1%3.9%Up 
6ParisFrance10.5%1.1%0.0%Down 
7MadridSpain10.1%4.0%3.0%Down 
8San FranciscoUSA9.0%5.2%1.0%Up 
9SydneyAustralia8.7%3.0%0.9%Down 
10MelbourneAustralia8.3%2.0%0.1%Down 
11Los AngelesUSA8.1%2.7%1.9%Up 
12EdinburghUK7.7%4.7%3.3%Up 
13Hong KongChina6.9%2.7%1.0%Down 
14BeijingChina6.4%3.7%1.7%Down 
15ZurichSwitzerland6.0%3.1%0.4%Up 
16SingaporeSingapore5.8%5.9%2.1%Up 
17FrankfurtGermany4.2%1.5%-0.4%Down 
18TorontoCanada4.2%6.0%4.2%Down 
19BrisbaneAustralia3.0%3.0%0.1%Up 
20TokyoJapan1.9%1.9%-0.7%Up 

Source: Knight Frank

Luxury house prices – Global bottom 5

Source: Knight Frank

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