Global prime property prices fall
11th May 2012
Global prime property prices have fallen for the first time in over three years, according to the latest Knight Frank Prime Global Cities Index.
The data reveals that first the average cost of buying a prime property in key locations around the world fell by 0.4 per cent in the first quarter of 2012, which is the first quarterly drop since the start of 2009.
Despite this, the overall index rose 1.4 per cent in the 12 months to March 2012, with four prime markets achieving double digit growth in that period - Nairobi, Jakarta, Miami and London.
According to the figures, the top five performing cities were spread across four continents, with North America being the only continent to appear twice.
In London both prices and applicant numbers increased despite the stamp duty rise to seven per cent for individuals buying homes over £2 million, the statistic acknowledged.
"London and Singapore are proof that there is still a level of resilience in the prime markets with both cities shrugging off the introduction of new stamp duties in the first quarter of 2012," the report stated.
It added that capital flight will continue to focus on cities with low political risk, transparent legal systems, good security and ideally those with an HNWI-friendly tax regime.
Posted by Staff Writer: Robin Stenson
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