London Dips to 23rd position in the Global Cities House Price League- Knight Frank Research Reveals
Another consequence, possibly of the change in stamp duty has shaken the base of property investment in the UK and other parts of the world with large and some small fluctuations in the rankings of cities, according to a league table of “prime” house prices.
For the first quarter of 2016, the average of prime property in London was 0.8% higher than that of the same period last year. This is the lowest increase in a year since October 2009, according to an upmarket estate agent Knight Frank, who compiled the league table. This is surely going to affect the property investment market.
This increase is quite low if compared to the average overall prime price of 3.6% growth of all the 35 cities. Individual facts revealed that in some cities the abnormal growth is near 25%.
The report also included a 0.6% fall in values for the six months to March.
Among the 35 global cities where the prime property is bought and sold, London has gone down to the 23rd position.
According to an analysis by Knight Frank, this deceleration is the outcome of the upsurge in the stamp duty by an extra 3% on purchase of second home as introduced in the budget.
Kate Everett-Allen, a partner at Knight Frank, recommended that top-end property markets were demonstrating more steadiness.
“Since 2014 the index has consistently recorded annual growth of 3–4% with no city recording double digit annual price declines since the second quarter of 2015,” she said.
She quoted: “Record-low interest rates and cheap finance fueled demand in Shanghai leading to price growth of 20% year-on- year, however, in March the government tightened mortgage lending rules which is likely to result in slower growth in the second quarter.”
On one hand she analyzed stability in the top end of the global housing market, but on the other hand proposed high growth in Shanghai as an example of a market distorted by regulation.
If you are looking to buy Investment Properties for sale in other parts of the world, here is an update that you need to know. Canadian province, Vancouver has flown to take place among the top rankers and is followed by Shanghai, Sydney, Melbourne and Cape Town. Vancouver’s prime price is up by 26.3% as compared to the previous year. According to the estate agent, the reason comprises “severe lack of supply”.
The top rankers encountered a growth by double-digit. From the bottom, there are eight cities that got negative growth. Names include Delhi, Tokyo, Milan, Kuala Lumpur, Paris, Moscow, Hong Kong and Taipei.
Other research conducted on the basis of comparison of rents and wages with previous averages by The Economist revealed that homes are going to be valued more than 40% in Australia, Britain and Canada.
This dip came as a grave concern for the home owners of London, but is welcomed by the lot of investors who are thinking of property investment in the UK. So all those who keep looking for investment properties for sale at any corner of the world, need to analyse the change and make a wise decision.