Singapore saw luxury property prices rise by 11.5 per cent, topping the list of 20 key global cities in the second quarter of the year.
$1 million buys only 37 square metres of prime residential space in Singapore, following significant demand in overseas property investors. In contrast, Dubai saw prices decline by just under 1 per cent during the same period. The same amount of money will buy investors 137 square metres of space in particularly desirable locations, according to Knight Frank;s Wealth Report.
A partner for international residential research at Knight Frank, Kate Everett-Allen, said: ‘Property market regulations continue to determine the direction and volume of capital flows. Singapore, Hong Kong and Vancouver have all seen new macro-prudential measures introduced in the last six months. Singapore leads our annual rankings to Q2 2018, but the recent increase in stamp duty for foreign buyers and developers introduced in July 2018 will result in more moderate price growth.’
She argued that certain juristictions have introduced new regulations which have improved market transparency, offering many investors the condifence to move into emerging markets. However, other markets have introduced macro-prudential measures, such as Dubai, which has implemented changes to ease residency and investment laws.
Research manager at Knight Frank Middle East, Taimur Khan, explained: ‘This has boosted investor confidence in Dubai, where almost 60 per cent of transactions recorded in H1 2018 originated from international buyers.’
Tokyo saw luxury properties rise by 9.4 per cent following improved economic sentiment. The 2020 Summer Olympics has also encouraged investment.
In Europe, London prices declined by 1.8 per cent in the second quarter. Prices in Madrid rose by 10.3 per cent, while in Berlin prices were up 8.5 per cent. Paris saw a rise of 6 per cent, following a boost from domestic buyers who are encouraged by a burgeoning economy.