Europe and Asia dominate luxury property markets

European and Asian countries became the fastest-growing luxury markets in 2019, a Knight Frank report showed on Wednesday.

In Frankfurt, Germany, prices of high-end residences are rising 10.3% year on year. The city is joined by other European and Asian countries making up the 10 best-performing locations.

In Europe, Lisbon is ranked second with 9.6%, followed by Athens with 7% and Berlin with 6.5%.

Meanwhile, in Asia, luxury home prices in Taipei rose by 8.9% year on year.

The report found that prices in Athens and Cyprus are still rising, but from a low base, with prime prices still about 35% below their 2008 peak.

The head of international residential research at Knight Frank, Kate Everett-Allen, said the US and China trade war and protests in Hong Kong — and more stringent property regulations in some markets – tampered with activity and diverted capital to others.

“Gone are the days of 30% annual growth in China’s metropolises. Seoul and Taipei are now the region’s front-runners, with annual growth of almost 9% and 8% respectively.”

According to the report, London registered a fall of 2.6% in 2019.

That year, luxury residential prices across 100 global cities measured by Knight Frank’s prime international residential index (Piri 100) grew almost 2% compared with 1.3% in 2018.

“Despite wealth growth and interest rates in most advanced economies remaining at record lows, the slowing global economy, rising property taxes and in some cases a surplus of luxury homes for sale, weighed on price growth,” Everett-Allen said.