Prime property prices increased by just 1.9% in the year to September 2015, according to Knight Frank’s Prime Global Cities Index with Vancouver and Sydney leading the rankings with standout performances.

The index, which monitors and compares the performance of prime residential prices across key global cities, reports an increase of 20.4% in Vancouver in the year to September 2015. A shortage of supply and strengthening local demand alongside foreign interest are the reasons behind this strong performance.

Sydney is not far behind with an increase of 13.7%. The weak Australian dollar, an undersupply of new homes and a strong local economy are behind Sydney’s accelerating prices. Shanghai also recorded double-digit annual price growth, up 10.7% in the year. The reversal of strict housing policies and the introduction of new fiscal measures, including tax and interest rate cuts, have fuelled demand in Shanghai.

However, looking beyond the top rankings, the overall performance of the index is less than robust. The index now stands 34.1% above its low in Q1 2009 but its annual rate of growth is slowing.

Kate Everett-Allen, partner, residential research at Knight Frank said: “The index’s annual rate of growth has slowed significantly from 7% two years ago to 1.9%.”