An index of prime prices in 46 cities declined 0.4 per cent year-over-year
Global luxury home prices fall for first time since 2009
GLOBALluxury home prices fell in the first quarter for the first time since the financial crisis.
An index of prime prices in 46cities declined 0.4 per cent year-over-year، the first drop since 2009، according to real estate consultancy Knight Frank. That’s a sharp reversal from 10 per cent growth seen in the fourth quarter of 2021.
New Zealand’s housing market posted the biggest slump، with luxury home pricesin Wellington، Auckland and Christchurch falling by double digits.Major cities includingSan Francisco، New York، Los Angeles، Hong Kong and Vancouver alsosaw prime prices drop.
Knight Frank defines prime homes as the top 5 per cent of a market in terms of value.
Tightening in global monetary policy
“The slowdown in growth has overwhelmingly been driven by sharply higher interest rates following recent tightening in global monetary policy،” wrote Liam Bailey، Knight Frank’s global head of research.
Still، the majority of cities tracked by the firm saw prices increasein the first quarter، with Dubai and Miamipostingdouble-digit gains. Prices in Dubai surged 44 per cent، bringing its total pandemic-eragrowth from March 2020 to 149 per cent.
While luxury housing markets are likely to experience continued downward pressure for the next few quarters، there arefew signs of a repeat of the financial crisis، when the index fell 8.2 per cent from peak to trough، Bailey wrote.
