Guangzhou, Seoul and Sydney in top 10 of PIRI 100. Australasia remains top performing region for third consecutive year

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1 Strictly embargoed until 08:01am SGT Wednesday 7th March 2018 Guangzhou, Seoul and Sydney in top 10 of PIRI 100 Australasia remains top performing region for third consecutive year Singapore, 7 March 2018 Knight Frank, the independent global property consultancy, today launches the 12th edition of The Wealth Report that includes the Prime International Residential Index (PIRI 100). The Index tracks the movement of luxury residential prices in the world s top 100 cities and second home markets, including 20 destinations from Asia-Pacific. Index performance On average, values rose globally by 2.1% in 2017, compared with 1.4% in Of the locations tracked by PIRI, 66% recorded flat or rising prices in 2017, up from 61% the year before. The PIRI 100 also reveals a widening gap of 52.4 percentage points between the top performer (Guangzhou +27.4%) and bottom ranking (Lagos -25%), up from 49 in Australasia was the best performing region in 2017 with an average increase of 7.1% in its prime markets, led by Sydney and Melbourne. The weakening in Beijing and Shanghai contributed to a slight drop across the Asia-Pacific region as a whole, with markets averaging 4.4% growth in 2017, down from 5.2% the previous year. Performance by region Region Annual % price change (Dec 2016 to Dec 2017) Australasia 7.1% North America 6.0% Asia 4.4% Latin America 2.5% Global 2.1% Europe 2.0% Caribbean -1.1% Africa -1.5% Middle East -4.8% Russia/CIS -9.4% Victoria Garrett, Asia Pacific Head of Residential at Knight Frank, says, Bucking the trend of stabilising prices in the other Tier-1 Chinese cities and despite continued cooling measures, Guangzhou emerged top in PIRI 100 in 2017 as the city s prime residential prices closed in on those of Beijing and Shanghai. Australasia, while seeing growth slow with the implementation of cooling measures, still contributed to the strongest performing region globally. Strong appetite for prime property remains and the lack of prime stock in Sydney has continued to place the Australian city ahead of Melbourne. Page 1/6

2 Most expensive prime residential the square metres of prime property US$1m will buy Knight Frank s analysis of global property markets also explores how many square metres US$1m can buy in 20 key cities around the world (the table below highlights the top 10). The usual suspects return to the PIRI Pagoda Index, as last year s top four of Monaco, Hong Kong, New York and London retain the top spots. Monaco is the most expensive city in which to buy luxury residential property, with US$1m buying just 16 square metres of accommodation. The square metres of luxury property US$1m will buy around the world (As at Dec 2017) How many square metres of prime property US$1m City buys across the world, 2017 Monaco 16 Hong Kong 22 New York* 25 London 28 Singapore 39 Geneva 41 Paris 46 Sydney 48 Shanghai 54 Los Angeles* 58 *New developments only. All data Q based on exchange rate on 31 Dec 2017 Source: Knight Frank Research, Douglas Elliman, Ken Corporation, The Wealth Report 2018 (Pg 38) Liam Bailey, Global Head of Research at Knight Frank, explains in this year s Wealth Report With rate rises likely in the US, China and Canada and potentially the UK, and with the European Central Bank beginning to taper its quantitative easing purchases, the process of unwinding economic stimuli will accelerate. Despite these moves towards tighter monetary policy, though, borrowers will still be able to lock into incredibly cheap rates of debt in The fear of higher future interest rates and higher prices may spur action by investors to crystallise purchases, partly in the hope that property lives up to its reputation as a strong hedge against inflation. END Page 2/6

3 Footnote to editors: The PIRI 100 Rank Location World Region Annual % change 1 Guangzhou Asia 27.4% 2 Cape Town Africa 19.9% 3 Aspen North America 19.0% 4 Amsterdam Europe 15.0% 5 Seoul Asia 13.2% 6 Frankfurt Europe 12.9% 7 Seattle North America 12.2% 8 Paris Europe 12.0% 9 Sydney Australasia 10.7% 10 Madrid Europe 10.6% 11 Munich Europe 10.0% 12= Buenos Aires Latin America 9.9% 12= Berlin Europe 9.9% 14 Melbourne Australasia 9.8% 15 Shanghai Asia 9.2% 16 Toronto North America 8.7% 17 Hong Kong Asia 7.3% 18 Barcelona Europe 7.2% 19 Mexico City Latin America 6.9% 20 Beijing Asia 6.7% 21 Liguria Europe 6.6% 22= Western Algarve Europe 6.5% 22= Auckland Australasia 6.5% 24 San Francisco North America 5.9% 25 Boston North America 5.8% 26 Singapore Asia 5.6% 27 Edinburgh Europe 5.4% 28 Oslo Europe 5.3% 29 Los Angeles North America 5.1% 30 St Rémy de Provence Europe 5.0% 31 Istanbul Middle East 4.7% 32 New York North America 4.6% 33= Chamonix Europe 4.5% 33= Bangkok Asia 4.5% Page 3/6

4 35 Dublin Europe 4.3% 36 Jersey Europe 3.6% 37 Vancouver North America 3.5% 38= Val d'isere Europe 3.0% 38= Marbella Europe 3.0% 40 Cannes Europe 2.7% 41 Cyprus Europe 2.6% 42= Mustique Caribbean 2.5% 42= Mallorca Europe 2.5% 44 Chicago North America 2.4% 45= Washington DC North America 2.2% 45= Miami North America 2.2% 47 São Paulo Latin America 2.1% 48 Tokyo Asia 2.0% 49 Gstaad Europe 1.8% 50 Phuket Asia 1.7% 51 Méribel Europe 1.6% 52= Jakarta Asia 1.5% 52= Bahamas Caribbean 1.5% 54 St Barts Caribbean 1.4% 55= Tel Aviv Middle East 1.3% 55= Perth Australasia 1.3% 57 Mumbai Asia 0.6% 58= Monaco Europe 0.5% 58= St Moritz Europe 0.5% 60= Milan Europe 0.4% 60= Courchevel 1850 Europe 0.4% 62= The Hamptons North America 0.0% 62= Rome Europe 0.0% 62= Sardinia Europe 0.0% 62= Bali Asia 0.0% 62= Cap Ferrat Europe 0.0% 67 Johannesburg Africa -0.1% 68= Zurich Europe -0.3% 68= Vienna Europe -0.3% 70= Lausanne Europe -0.5% 70= Megève Europe -0.5% 72= Kuala Lumpur Asia -0.7% 72= London Europe -0.7% 74 Lake Como Europe -0.8% Page 4/6

5 75= Geneva Europe -0.9% 75= Nairobi Africa -0.9% 77 Florence Europe -1.2% 78 Stockholm Europe -1.4% 79 Brussels Europe -1.5% 80 Oxford Europe -1.6% 81= Ibiza Europe -1.7% 81= Verbier Europe -1.7% 83 Delhi Asia -2.3% 84 Bengaluru Asia -2.4% 85 Dubai Middle East -3.3% 86 Taipei Asia -4.3% 87= St Tropez Europe -5.0% 87= Barbados Caribbean -5.0% 87= Riyadh Middle East -5.0% 90= Bodrum Middle East -6.0% 90= British Virgin Islands Caribbean -6.0% 92 St Petersburg Russia/CIS -7.4% 93 Venice Europe -7.5% 94 Rio de Janeiro Latin America -8.8% 95= Abu Dhabi Middle East -10.0% 95= Evian Europe -10.0% 97 Umbria Europe -10.5% 98 Moscow Russia/CIS -11.3% 99 Doha Middle East -15.0% 100 Lagos Africa -25.0% Source: All data comes from Knight Frank's global network with the exception of Tokyo (Ken Corporation); São Paulo and Rio de Janeiro (Fundação Instituto de Pesquisas Econômicas); Oslo (Torbjørn Ek); Boston, Chicago, Los Angeles, Miami, New York, San Francisco, Seattle and Washington DC (S&P CoreLogic Case-Shiller); Barcelona (Ministerio de Fomento); Tel Aviv (Israel Central Bureau of Statistics); Jersey (States of Jersey); Berlin and Frankfurt (Immobilienscout 24); Mexico (Sociedad Hipotecaria Federal); Cape Town and Johannesburg (First National Bank); Stockholm (Svensk Maklarstatistik). To download the report, please visit: For further information, please contact: Mr Nicholas Holt, Asia-Pacific Head of Research Ms Rachel Loke, Asia-Pacific Head of Marketing, Communications & Digital Page 5/6

6 Notes to Editors Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 15,000 people operating from 418 offices across 60 markets. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit Page 6/6