Luxury residential prices continued their upward trajectory in the third quarter, fueled by the need for space, according to Knight Frank.
Average prime home prices rose 9.5% year over year in September, up from 8.3% in the second quarter, according to a report released by the real estate agency on Wednesday.
“With travel starting to normalize, the prospect of tighter monetary policy on the horizon, as well as higher taxes and cooling measures, evidence suggests prime markets had a busy third quarter,” Kate Everett-Allen, Knight Frank’s head of international residential research, said in the report.
Indeed, 85% of cities saw average luxury prices increase in the third quarter, compared to 76% in the previous three months, according to the report, which looked at the top 5% of the market in 46 cities around the world. Double-digit growth was recorded in 35% of cities
Miami registered the biggest growth of the cities tracked in the report. The South Florida city saw a 26.4% jump in average prices in the third quarter, the data showed.
RANK CITY World Region 12 Month % Change
1. Miami North America 26.40%
2. Seoul Asia 22.60%
3. Shanghai Asia 20.50%
4. Moscow Russia & CIS 20.50 %
5. Toronto North America 20.40%
6. San Francisco North America 20.20%
7. Taipei Asia 18.90%
8. Los Angeles North America 18.20%
9. Guangzhou Asia 17.60%
10. St. Petersburg Russia & CIS 15.50%
“Miami leads the index this quarter for the first time since the index started in 2007,” Ms. Everett-Allen continued. “The hunt for larger accommodation, coastal living and Florida’s low taxes acted as a key draw for a new breed of remote workers in the U.S.”
Other top-performing prime markets include Seoul, where average prices were up 22.6% annually in the third quarter, the report found. Shanghai and Moscow followed, both registering a 20.5% rise, and Toronto rounded out the top five with a 20.4% increase.
However, Toronto was also one of 15 cities that saw luxury prices drop between the second and third quarters, sliding 1.5%, the report found. The four Chinese cities tracked in the report also saw declines. Prices were down 2.1% quarter over quarter in Shenzhen and 1.3% in Shanghai, while Beijing and Guangzhou both registered a 0.1% dip.
“The Ever Grande crisis, a raft of cooling measures and localized outbreaks of Covid-19 explain the slowdown in luxury price growth in the Chinese mainland’s top-tier cities,” Ms. Everett-Allen said in the report.
London registered a 0.7% rise in average prices for luxury properties, compared to the same time in 2020, the report said. Quarter over quarter, prices were up 0.2%.
Jakarta saw the biggest year-over-year decline in the average price of a prime property, 4.2%, the data showed. Dubai followed, registering a 3.6% annual decline but a 0.3% quarter-over-quarter bump, signaling a possible turnaround for the Middle Eastern financial hub. New York also saw a year-over-year drop in prices, but a 1.7% increase between the second and third quarters.