Knight Frank Global Cities Index Prime-second quarter 2012 record, Asia and Europe provide a major influence on improving the performance of the index in the second quarter of this year. Recorded, the price of luxury properties in Asia increased by 3.4% during 6 months of this year compared to the percentage increase in March 2011 and negative 2.5%.
Not much different, prices in Europe rose by 1.3% during 6 months of this year. Knight Frank notes, it shows the performance improvement from the previous year of -3.4% in March 2011.
The improved performance of a luxury property market in Asia in the second quarter of this year mainly due to the strong market performance in major cities of developing countries, such as Jakarta and Bangkok, rather than major cities in developed countries in Asia such as Singapore and Hong Kong. While growth rates in Europe has improved slightly, despite the crisis the euro zone is still worrying and uncertain.
With the high prospect of a bailout plan or the help of an injection of funds will be made, luxury property buyers and investors seem to have separated the major cities in Europe to become the major cities with different categories of market segmentation. Buyers and investors are no longer just pay attention to the major cities that can provide high demand, good quality of life and attractiveness of the world’s buyers and investors, but also an increasing trend toward luxury properties in major cities that can provide high durability due to the impact of the euro zone debt.
For example, London, Geneva, and Zurich, for example. These three cities are located in the up position improved growth performance of the annual average amounted to 10.5%, 6.0% and 5.9%. According to James Price, of the group Knight Frank International Residential Development, the positive performance of some major cities in developed countries in Europe and the United States provides a signal that the trend of migration to the location of the purchase of luxury properties with the location of the level of security is better, more external risk low and the value of the investment more profitable, or “Flight to Quality” is still the main characteristics of the buyers and international investors.
James said, although the index of the research showed positive performance results in the second quarter of this year, but growth in the overall performance of the world’s luxury property market is expected to remain stagnant. According to him, very hard look at the possibility of significant price growth with consideration of the negative risks facing the global economy.