Double digit growth for prime properties in Sydney

Double digit growth for prime properties in Sydney Prime property price increases in Sydney are second only to Vancouver, according to Knight Frank’s latest Prime Global Cities Index.The Prime Global Cities Index for Q3, 2015 finds three cities – Sydney, Vancouver and Shanghai – recorded double-digit annual price increases in the year to September 2015.The index, which increased by 1.9 per cent over the year, monitors and compares the performance of prime residential prices across key global cities.Knight Frank attributes Vancouver’s 20.4 per cent increase in property prices to the shortage of supply and strengthening local demand and foreign interest.The weaker Australian dollar, an undersupply of new homes and a strong local economy are behind Sydney’s accelerating values. The story is similar in Melbourne, which sits in fifth place, behind Jakarta, with an annual increase of 9.4 per cent.Monaco, Bangkok, Seoul, Bengaluru and Cape Town round out the top ten.Knight Frank’s director of residential research in Australia, Michelle Ciesielski, says the lower Australian dollar has influenced the number of ex-pats “taking advantage of buying a prime property in these ideal conditions”, while the introduction of investor visas has also increased the flow of money into Australia.Ciesielski says growth in prime property prices is also being driven by the limited supply of quality stock available in sought-after locations. The index now stands 34.1 per cent above its low in Q1 2009, but its annual rate of growth is slowing. While 73 per cent of cities recorded positive annual price growth in the year to September, two years ago this figure was closer to 91 per cent. Australasia leads the index by region, with an average annual price growth of 11.6 per cent, followed by North America at 8.5 per cent. Europe has entered positive territory this quarter with an increase of 0.8 per cent. To read the report, click here.