Sydney and New York are the only major cities forecast to see price rises in their prime property sector in 2015, a new report shows.
The Knight Frank Prime Global Cities Forecast states that out of the eight cities included in the Index, it is only these two cities that are likely to end 2015 with higher property prices than they were at the start.
According to the report, New York is expected to be the top-performing prime city for real estate in 2015, driven by price growth in Manhattan’s luxury residential property market, where price are expected to rise between 5 per cent to 10 per cent, boosted by strengthening foreign interest from Chinese, British, Russian and Latin American buyers.
Sydney’s limited luxury property supply, meanwhile, could see prices rise by up to 5 per cent.
While some will be surprised to find that London prices are not expected to continue to increase in 2015, Knight Frank points out that property markets are generally sluggish in election years due to uncertainty in the markets. However, the report states that London’s prime market is likely to remain stable.
The remaining five cities in the index – Paris, Singapore, Geneva, Hong Kong and Duabi – are all expected to witness price falls in the luxury property sector.
“The biggest faller is likely to be Dubai, where luxury prices could fall by 5-10 per cent in 2015,” said Kate Everett-Allen of Knight Frank. “Luxury residential markets face a diverse range of challenges and opportunities in 2015. Now that stimulus measures have all but disappeared in the US and the UK all eyes are on Europe and Japan and the extent to which they could halt the tentative global recovery,”
Article published 11th December 2014