House prices grew faster in the Chinese city of Shenzhen last year than in any other global city, new research shows.
According to the 2016 Knight Frank Global Residential Cities Index, residential property prices in Shenzhen rose by a whopping 47.5 per cent last year, placing it easily ahead of the second fastest growing market, Auckland, NZ, which recorded price rises of 25.4 per cent.
Overall, the index, which is based on official house price data for mainstream residential markets, increased by an average 4.4 per cent in 2015.
More than 121 of the 165 cities tracked by the index saw house prices either rise or remain flat during the year.
In 2015, first-tier cities in China saw strong demand on the back of the relaxation of policy restrictions which boosted market performance. With a population of 10 million, and an average resident age of 30, Shenzhen is fast becoming one of China’s key technology hubs.
Budapest; where prices increased by 16.3 per cent in 2015; was the strongest-performing capital city within the index. The city’s comparative value, combined with an exclusive investment immigration bond programme for Chinese nationals, has fuelled demand for property there.
The Indian city of Chandigarh occupies the bottom ranking this quarter, here prices fell by 7.7 per cent year-on-year. Despite cutting interest rates four times in 2015, India’s base rate still stands at 6.75 per cent and the economy has faltered impacting on household income.
Of the 43 cities which saw house prices decline in 2015, 20 were located in Europe, with the southern European economies well represented. Cities in Greece, Italy and Cyprus occupy four of the bottom five rankings.
Top five cities in terms of house price growth 2016
- Shenzhen, China +47.5%
- Auckland, New Zealand + 25.4%
- Istanbul, Turkey +25%
- Sydney, Australia +19.9%
- Shanghai, China +18.2%
Bottom five cities in terms of house price growth 2016
- Chandigarh, India -7.7%
- Thessaloniki, Greece -5.9%
- Nicosia, Cyprus -5.2%
- Genoa, Italy -5.1%
- Trieste, Italy -5%
Article by David Fuller