Price Growth In US Cities Eclipsing Europe And Asia 

The report showed that luxury homes in key US cities are now increasing in value at a faster rate than those in several European and Asian cities.

Knight Frank Australia’s Michelle Ciesielski, Associate Director, Residential Research

, said “New York, Los Angeles, Miami, San Francisco all recorded double-digit annual price growth in the 12 months to June 2014, placing them in the top 10 rankings.”

“Overall, Sydney ranked third in the Asia Pacific region with prime residential values increasing by 10.9 per cent in the twelve months to June, following 5.4 per cent growth over the same period in 2013, although we have started to witness values compressing to a more sustainable 1.0 per cent growth over the last quarter” said Ms Ciesielski.

Over the last quarter the improving performance of luxury homes in North America was noted, this trend has continued in the second quarter with New York, Los Angeles, Miami and San Francisco all recording double-digit annual growth in the 12 months to June, placing them all in the top 10 rankings.

Jakarta and Dublin stood out due to their stellar performances, ending the year to June 27.3 per cent and 23.5 per cent higher respectively. However, in both cases the rate of growth has slowed in the second quarter.

In Dubai, prime prices rose by 6.3 per cent in the year to June, down from 11.7 per cent last quarter.

The mortgage cap and the doubling of transfer fees at the end of 2013 influenced buyer activity more than forecast as new research by Knight Frank revealed around 25 per cent of purchases are mortgage financed in the Emirate.