As debt woes mount across Europe, and economic uncertainty continues in the U.S., property prices in prime city markets has slowed to about 7% in Q2 2011, from about 14% a year ago, according to a new report by Knight Frank.With Asian countries introducing regulatory measures to curb home sales and inflation, prime markets have seen property prices grow at a slower pace.
On annual basis, the Knight Frank Prime Global Cities Index rose by 6.8% in the first half of 2011, down from 13.5% a year ago.
We picked the top 11, of the 14 prime markets, and only Singapore and Zurich showed a slowdown in prices. Kiev which was in the ninth spot the last time around, slid to fourteenth with a 5.9% drop in prices in the second quarter.
Annual change: +6.8%
Despite falling 6.3% in the first half of 2011 compared with a year ago, luxury home prices jumped 3.6% in Q2 2011, from the previous quarter.
Annual change: +7.7%
Despite cooling measures put in place by the government for China's high and low-tier cities, property prices seem to be rising. In Shanghai, luxury home prices have been up 2.4% in the first half of the year and up 1.3% in the second quarter.
Annual change: +8.9%
Despite the government's regulatory measures, luxury home prices in Beijing grew at a faster rate than they did in Shanghai. Luxury home prices in Beijing were up 6.6% in the first half of the year, and 2.7% in the second quarter.
Annual change: +10%
Luxury home prices grew a slower pace in Paris and didn't change in the second quarter of the year, but prices reached their pre-recession peak. Foreign demand for prime Parisian property has remained high with interest from the Middle East, specifically Syria.
Annual change: +12.2%
St. Petersburg has posted positive annual luxury home price growth since Q1 2010. Prime property prices were up a 8.4% since the last quarter, and 17.3% in the first half of the year, driven by a marked improvement in economic and business sentiment in Russia since the start of the year.