Last year prices fell in 39% of locations, compared with almost half in 2012. A fifth of markets featured saw double-digit price growth in 2013 against only 15% the year before.
Across PIRI, the main division is between generally booming Asian markets, which dominate the top positions in our ranking of price growth, and the weaker European markets that account for 80% of all locations where prices declined in 2013. Jakarta heads PIRI, with annual growth of 38%, almost exactly the same as the rate seen in 2012. With Bali number three in our table (+22%), Indonesia’s key markets are continuing to outperform the rest.
“Price growth in Jakarta is supported by limited supply while demand has remained strong. This is despite a slowing in Indonesia’s economic growth and the uncertainty created by the forthcoming presidential election in July this year,” explains Hasan Pamudji of Knight Frank Indonesia.
New Zealand’s prime markets have also strengthened significantly, with very strong annual growth in both Auckland (+29%) and Christchurch (+21%). Layne Harwood, Managing Director of Knight Frank New Zealand, points to two key factors: strong economic fundamentals, with GDP growth comfortably above 3% in 2013, and strengthening inward migration – from Asia in the main, but also powered by returning ex-pats.
The rebound in markets most affected by the downturn in 2008 has continued. Dubai experienced 17% growth in 2013, to add to its 20% gain in 2012. In Dublin, which witnessed tentative increases in 2012, prices climbed 18% in 2013.
Cities in Asia-Pacific have, by and large, performed particularly strongly, although government cooling measures have pulled back growth in Singapore and Hong Kong.
The full data set is available by downloading The Wealth Report.
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