Prime Property Prices in Vancouver Rise by 25%

Posted On Tuesday, 15 March 2016 12:54 Published by
Rate this item
(0 votes)

Prime residential property prices in Vancouver rose by 25%* in 2015 according to Knight Frank’s Prime International Residential Index (PIRI).

Prime_International_Residential_Index_PIRI

Of the 100 markets analysed as part of Knight Frank’s Wealth Report 2016, Vancouver's growth outpaced other markets by some margin. A lack of supply, coupled with foreign demand, spurred on by a weaker Canadian dollar, explains Vancouver’s outstanding performance.

Kate Everett-Allen, partner, residential research at Knight Frank says, “The value of the world’s leading prime residential property markets rose on average by 1.8% in 2015. This was similar to the 2% overall growth seen in the previous year. However, in 2015 66% of the PIRI 100 locations recorded flat or positive price growth compared to 62% in 2014.”

Antipodean markets also performed well in 2015 with Sydney, Melbourne and Auckland recording double-digit annual price growth, up 15%, 12% and 10% respectively. Munich, Amsterdam, Monaco and Berlin are Europe’s standout performers, recording price growth of 12%, 10%, 10% and 9% respectively. The prime central London market remained in positive territory during 2015 (+1%) despite a raft of new property taxes.

Of the 34 locations where prime prices slipped in 2015, 22 of these were located in Europe. Nonetheless, there is renewed optimism that prices in many of the region’s most popular second-home destinations are close to bottoming out.

Buenos Aires and Lagos are located at the bottom of the PIRI rankings. Buenos Aires saw prices drop by 8% and prime prices in Lagos declined by as much as 20%.  The US Federal Reserve’s recent rate rise, the resulting strong US dollar and the collapse in commodity prices help to explain the decline in these two markets.

The PIRI Top Ten

For the full PIRI 100 rankings please see appendix attached.

Ranking

Location

World Region

Annual % change (Q4 2014-Q4 2015)

 
 

1

Vancouver

North America

24.5%

 

2

Sydney

Australasia

14.8%

 

3

Shanghai

Asia

14.1%

 

4

Istanbul

Middle East

13.0%

 

5

Munich

Europe

12.0%

 

6

Melbourne

Australasia

11.9%

 

7

San Francisco

North America

10.9%

 

8

Auckland

Australasia

10.2%

 

9=

Amsterdam

Europe

10.0%

 

9=

Monaco

Europe

10.0%

 

Most Expensive Property

Monaco - for the ninth consecutive year – is confirmed as the most expensive city to buy luxury residential property, with US$1m buying just 17 square metres of accommodation. Hong Kong and London occupy second and third place offering 20 and 22 square metres respectively for US$1m.

The square metres of luxury property US$1m will buy around the world

As at Dec 2015

City

 How much does US$1m buy you in…?

 Monaco

17

 Hong Kong

20

 London

22

 New York

27

 Geneva

40

 Sydney

40

 Singapore

42

 Shanghai

46

 Paris

57

 Beijing

58

Notes: Price ranges for Hong Kong, Beijing and Shanghai are for properties considered “Super-Prime”. Prices used in the calculation for Sydney and Hong Kong are based on apartments only and for New York, Los Angeles and Miami based on condos only. All currency calculations are based on the prevailing rate on 31 December 2015.

2016 Residential Hotspots

In a higher-interest rate and lower growth environment, picking the right residential property investment location becomes a more pressing issue. The Knight Frank Wealth Report highlights key future investment areas for 2016.**

Country - Vietnam: A country on an upward trajectory. New rules brought in during 2015 opened up property markets to foreign investors. The new metro line currently underway in Ho Chi Minh City will see District 2 and 9 outperform.

City - Los Angeles: Prices are growing underpinned by limited new supply, while demand flows have been bolstered by Asian buyers. Improvements of urban centres, retail and the wider lifestyle offer are opening up to new areas of investors.

Neighbourhood - Pimlico, London: One of central London’s very few overlooked residential markets. High-quality housing stock, riverside location and proximity to established prime markets ensures the area stands to benefit from major regeneration taking place in adjacent Victoria.

Second Home - Gold Coast: Arrival of the Commonwealth Games in 2018 has kickstarted investment. Competitive prices, compared with Australia’s top cities, plus strong fundamentals – local population growth and expanding tourism – underpin demand.

Ski - Meribel: The resort is increasingly viewed as the destination of choice in the Alps providing access to the world’s largest ski domain and a vibrant village atmosphere.

Last modified on Tuesday, 15 March 2016 13:17

Most Popular

Anuva Investments launch Section 12J hospitality fund with property partners Flyt Property Investment

Oct 18, 2019
Zane De Decker HR
Investment into Section 12J venture capital vehicles has seen a huge uptake over the last…

Fairvest to become fourth property company to list on A2X

Oct 30, 2019
DARREN WILDER
Fairvest Property Holdings, a real estate investment trust with a market cap of R2…

Property market ready for take-off as bond grants rise

Oct 18, 2019
BetterBonds Mortgage Monitor
Housing demand has continued to gain momentum since the start of the year and in the…

Significant shifts in the Winelands commercial sector

Oct 18, 2019
Caption Somerset West commercial
A decade of corporate semigration and decentralisation fuelled the Winelands commercial…

Equites Property Fund Interim Results

Oct 18, 2019
Andrea Taverna Turisan CEO Equites Property Fund
Equites Property Fund Limited (Equites) today announced distributable earnings for the…

Please publish modules in offcanvas position.