At least 10 percent price growth in luxury homes has been experienced by three major cities namely Vancouver, Sydney, and Shanghai in Asia in the past year, a new research revealed in a report by Daily Mail UK.
Vancouver in Canada went through a 20.4 percent growth during the year up to September. Meanwhile, in Sydney Australia, luxury home prices rose by 13.7 percent. And the only other city with a double digit growth for the year was Shanghai in Asia at 10.7 percent.
Knight Frank produced the table and they see the strong economies and lack of supply as reasons for the significant price growth.
New York, London, Paris and Zurich have fared nowhere near with an increase of only 2 percent, 1.2 percent, and a drop of 2 percent and 5.1 percent in luxury home prices respectively.
Vancouver is seeing a steady high market price considering the strong demand from local and overseas buyers and a drop of inventory by 32 percent year-on-year.
In Shanghai, the growth is fueled by a reversal of their stringent housing policies along with significant cuts on tax and interest rates.
Singapore suffers the biggest blow being the worst-performing city at 7.9 percent drop in prices of luxury homes.
Europe, in general, experienced a non-conclusive statistics with varying numbers across the region; Monaco has seen a 9.4 percent increase while Zurich suffered a 5.1 percent drop.
According to the report, China's slowdown is considered as one of the major factors behind the move of investors of putting their money in luxury homes overseas, along with US Government's quantitative easing.
It stated: 'As quantitative easing unwinds and a US rate rise draws near, prime assets will remain on the radar of investors and high net worth individuals.
'The big question mark surrounds not Greece and the Eurozone but the slowdown in the Chinese economy. Wealth from China will continue to flow into overseas property markets with UK, US, Canada and Australia being key target.'
