Moscow bucks trend of slower prime price growth
A year ago we announced the start of 'the Great Moderation' in prime residential markets. Twelve months on the slowdown has gathered pace.
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The change in prime prices for all 45 cities averaged 1.1% in the year to Q3 2019, down from 3.4% in 2018 and 4.2% in 2017.
Despite a longer-than-expected period of loose monetary policy and steady wealth creation, luxury sales volumes are at their weakest for several years in many first tier global cities.
Slower global economic growth – the IMF lowered its 2019 forecast from 3.3% to 3.0% in October – along with escalating headwinds: US/China trade relations, Hong Kong’s political tensions, a US presidential election in 2020 and the Brexit conundrum are influencing buyer sentiment.
Key findings, Q3 2019
- 76% of cities registered static or rising prices over the 12 months to September 2019
- Moscow leads the index this quarter with prime prices rising by 11% over the 12 months to September 2019
- As we forecast last year, the Eurozone’s key cities of Berlin (6.5%), Madrid (4.2%) and Paris (4.2%) have performed strongly in 2019 with Frankfurt and the Swiss cities of Geneva and Zurich also high in the rankings.
- Seoul was the weakest-performing city in the year to September due in part to tighter regulations including a price cap on new homes which is due to come into effect in Q4 2019.
For more information contact Kate Everett-Allen
Read the report in full here