Knight Frank’s Prime Global Cities Index has ranked Vancouver, Sydney and Shanghai at the top of its list.
The Knight Frank Index looks at the performance of prime residential markets and compares them with cities across the world.
Property prices have reached double digit increases, with Vancouver properties up by an average 20%. The rise has been put down to a shortage in supply as well as a flurry of investment from local and international investors.
Ranked in second place, Sydney witnessed property price increases of around 14%. Again an undersupply of available properties has been attributed to the hike in prices however, a weak Australian dollar has slowed growth in the city.
Shanghai was named third in the rankings. A shake up in housing policies including tax changes and interest rate cuts, has meant that average property prices have increased by 10.7%.
Michelle Ciesielski, Director of Residential Research Australia at Knight Frank commented: “The price growth shown in Sydney and Melbourne on this quarter’s index is due to a number of factors.
“One factor is the lower Australian dollar, which has influenced the number of ex-pats buying back in Sydney and Melbourne, taking advantage of buying a prime property in these ideal conditions – ready for when they eventually return to Australia.
“Since the Significant Investment Visas, and more recently the new Premium Investor Visas, were introduced in July, foreign money has been flowing into Australia through off-shore buyers looking to secure a trophy asset on the waterfront or in one of the cities’ more exclusive suburbs.
“There are still downsizers in the market, willing to wait to achieve that higher price they’ve been holding out for over the past few years, and as a result are making sure they’re ticking off all the boxes for the criteria they want in a property.
“Finally, growth in prime property prices is also being driven by the limited supply of quality stock available in sought-after positions such as along the Harbour. However, we are expecting more higher-density prime stock to come to the market in Sydney with the completion of Barangaroo and the Circular Quay redevelopment,” Ms Ciesielski added.