The latest (Q2 2017) Global Residential Cities Index by Knight Frank has revealed that urban house prices are recording slower growth globally.
The slowdown in China’s cities has influenced the index’s overall performance this quarter, but some Indian cities are rising up the rankings says Kate Everett-Allen, international residential research at Knight Frank.
The Index increased by 6.1% in the year to June 2017, down from 6.9% last quarter. This marks the first quarterly decline since the start of 2016. The number of cities registering annual price growth above 20% has fallen from 12 to 9 in the last three months, with Chinese cities less dominant at the top of the rankings.
Last quarter, seven of the top ten cities were in China but three months later, only three Chinese cities remain; Wuxi, Zhengzhou and Changsha. However, Everett-Allen says: “This is a deceleration rather than a crash. Prices are still rising on a year-on-year basis in all twenty of the Chinese cities we track within the index. The outliers have reduced in number and the lower tier cities are now outpacing cities such as Shanghai and Beijing, which have seen the most stringent cooling measures.