Prime residential property prices in Bangkok grew 6.4 percent in the 12 months ending June 2014, although there was no change in the three months from April – June.
Knight Frank’s Prime Global Cities Index report noted that across the 32 cities monitored, prime property prices rose by 6.2 percent on average in the year to June 2014. Luxury homes in key U.S. cities are now increasing in value at a faster rate than those in several European and Asian cities, the real estate firm noted.
A total of 27 cities recorded positive annual price growth in the year to June 2014, up from 21 a year earlier, with Jakarta top of the list with annual price growth of 27.3 percent.
The reported noted that with the gradual withdrawal of stimulus measures in the U.S. and the U.K., the prospect of rising interest rates and the continual enforcement of cooling measures across much of Asia, it would be logical to assume the index’s performance would be weakening.
However, the index’s annual increase of 6.2 percent in the year to June is above the long-run average of 4.6 percent recorded since Lehman’s collapse in the third quarter of 2008, underlining the extent to which prime property has become a favoured asset class globally.
Prime property in the report corresponds to the top 5 percent of the wider housing market in each city.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email: andrew@propertyguru.com.sg
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