Luxury house prices jump in Vancouver and Sydney as London and Paris stall

The world's luxury home hotspots revealed: Wealthy buyers flock to Vancouver and Sydney but London, New York and Paris hit the buffers Prices rise by 20.4% in the most popular luxury market of VancouverOther cities seeing double-digit house price growth are Sydney & ShanghaiSingapore is the worst-performing city with house prices falling almost 8% London sees prime property prices up by just 1.2% New York posts 2% rise and Paris sees luxury home prices dip 2.1% 


Three worldwide cities have seen the price of luxury homes increase by more than 10 per cent in the past year, new research has revealed.

Vancouver in Canada saw prices rise by 20.4 per cent during the year to September while those in Australia’s Sydney rose by 13.7 per cent. The only other place to see double digit growth in the year was Shanghai in Asia at 10.7 per cent. 

Strong economies and a lack of supply have pushed the destinations to the top of the table produced by estate agent Knight Frank. 

The average price of luxury homes in Vancouver has risen 20.4 per cent in the past year

The average price of luxury homes in Vancouver has risen 20.4 per cent in the past year

Traditional luxury home markets favoured by the world's super-rich have fared nowhere near as well. In New York prime prices were up 2 per cent, while in London they rose 1.2 per cent - but in Paris they dropped 2 per cent and in Zurich luxury homes fell by 5.1 per cent.

Prices have been kept high in Vancouver as demand from local and overseas buyers remains strong while the number of homes for sale drops 32 per cent year-on-year. 

At the same time, a reversal in strict housing policies along with tax and interest rate cuts have helped to fuel the growth in Shanghai.

The report raised concern about the wider luxury homes market, suggesting average gains have dropped significantly to 1.9 per cent, down from 7 per cent two years ago.

At the same time, 73 per cent of cities saw positive annual price growth, down from 91 per cent two years ago.

Singapore was the worst-performing city, with luxury house prices falling 7.9 per cent during the year to September.

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Europe has seen values rise by 0.8 per cent, but this varies across the region - from a 9.4 per cent increase in Monaco to the drop of 5.1 per cent in Zurich.

The report pinpointed the slowdown in China as one of the reasons why investors continue to put their money into luxury homes overseas, along with an easing of the US Government pumping additional cash into the economy via quantitative easing.

It stated: 'As quantitative easing unwinds and a US rate rise draws near, prime assets will remain on the radar of investors and high net worth individuals.

'The big question mark surrounds not Greece and the Eurozone but the slowdown in the Chinese economy. Wealth from China will continue to flow into overseas property markets with UK, US, Canada and Australia being key target'

Luxury homes in Vancouver have seen the biggest house prices increases in Knight Frank's report.

Luxury homes in Vancouver have seen the biggest house prices increases in Knight Frank's report.

Knight Frank revealed how much of clients wealth is in property

Knight Frank revealed how much of clients wealth is in property

It comes amid a slowdown in the values of luxury homes in London.

These had surged ahead in the years following the financial crisis, as the world's super-rich flocked to London property's perceived safe asset status - and took advantage of the big drop in the pound against other currencies. 

Jonathan Adams, director of prime Central London estate agency Napier Watt, said: 'It is no surprise that prices of luxury homes in London are not forecast to grow at the same rate as in certain other countries. 

'The market has slowed immensely, and while there are still some high prices being achieved, these are fewer and further between. 

'The sooner vendors accept the changed reality, the sooner volumes will pick up and the market will start moving.

'It is often stated that agents want prices to rise but ideally we want a stable market with increased levels of transactions. 

'Prices shot up too fast before the government moved to slow the market by introducing a range of taxes making it less attractive for overseas investors.' 

PRIME PROPERTY PRICES IN CITIES AROUND THE WORLD City Annual percentage change (Sept 2014 to Sept 2015) Vancouver 20.4% Sydney 13.7% Shanghai 10.7% Jakarta 9.4% Melbourne 9.4% Monaco 9.4% Bangkok 8.5% Seoul 7.6% Bengaluru 6.7% Cape Town 6.0% Miami 5.9% Los Angeles 5.8% Madrid 5.2% Nairobi 3.5% Beijing 2.7% Tel Aviv 2.7% Mumbai 2.6% Edinburgh 2.5% New York 2.0% Tokyo 1.8% Delhi 1.7% Hong Kong 1.7% London 1.3% Dublin 1.2% Rome 0.3% Guangzhou -0.2% Kuala Lumpur -1.1% Vienna -1.2% Taipei -1.8% Paris -2.1% Geneva -3.7% Moscow -3.8% Zurich -5.1% Singapore -7.9% Source: Knight Frank

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