Knight Frank’s Prime Global Cities Index for the second quarter of 2016 listed Singapore as ninth with highest increase in luxury home prices. It spiked reaching 7.9 percent in the year to June 2016. Top five percent of wider housing market in each city corresponded resulting to this statistic.
Vancouver tops the list with a surge of 36.4 percent on their high-end homes. The inflation is expected by the Canadian government to drop after they have implemented a new tax system for foreign purchase last August 2.
Shanghai ranks second in Q2 top performers with 22.5 percent hike. Other cities with the highest boost in luxury home prices include Cape Town (16.1 percent), Toronto (12.6 percent) and Sydney (10.2 percent). Also in the list are the cities of Tokyo, Guangzhou and Seoul.
Knight Frank revealed that most of the top ten cities are undergoing new cooling measures for real estate properties over the past year. According to the property consultancy firm, the latest move of policy makers in Vancouver which is to pass 15 percent tax on foreign purchase has been done already by some Asia-Pacific countries.
“Hong Kong and Singapore, most notably, have added 15 percent additional buyers stamp duties, while the Australian states of Victoria, Queensland and New South Wales have also recently introduced various additional levies for foreign buyers,” said Nicholas Holt, Knight Frank’s Asia Pacific Head of Research.
“Conversely, liberalisation is the flip side of protectionism; whilst we have seen foreign buyers penalised in certain markets, in Vietnam and Indonesia for example, we have seen policy makers go the other way with recent moves to relax rules for non-nationals,” he added.
Hong Kong takes the title from Taipei for being the weakest-performing residential market in the world as of the second quarter. This came out due to the 8 percent drop in luxury home prices while supply has increased and issues with economic slowdown continues.