Prime property prices in the world’s key cities increased by 1.9% in the year to September 2015 but the data conceals some standout performances by cities such as Vancouver and Sydney.

Vancouver, Sydney and Shanghai recorded double digit annual price increases to take the Prime Global Cities Index from Knight Frank to 34.1% above its lowest point in the first quarter of 2009 but its annual rate of growth has slows significantly from 7% two years ago.

Around 73% of cities recorded positive annual price growth in the year to September, two years ago this figure was closer to 91% and Singapore is the weakest performing luxury residential market for the seventh consecutive quarter but the rate of annual decline has slowed from -15.2% at the end of the second quarter to -7.9% this quarter.

Vancouver leads the rankings for the second consecutive quarter with prime prices in the city up by 20.4% in the year to September. Supply is tight with the number of homes for sale down 32% year on year and local demand is strengthening alongside foreign interest, the index report points out.

Sydney and Shanghai also recorded double digit annual price growth, increasing by 13.7% and 10.7% respectively year on year. The report says that the weak Australian dollar, an undersupply of new homes and a strong local economy are behind Sydney’s accelerating prices, whilst in Shanghai the reversal of strict housing policies, and the introduction of new fiscal measures, including tax and interest rate cuts, has fuelled demand.

Looking beyond the top rankings, the overall performance of the index is less robust. Analysis by world region shows Australasia leads, with average annual price growth of 11.6%, followed by North America at 8.5%. Europe, at 0.8% is now in positive territory but performance varies, from 9.4% in Monaco to -5.1% in Zurich.

‘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 the UK, US, Canada and Australia being key target destinations,’ said Kate Everett-Allen, residential research partner Knight Frank.

Vancouver & Sydney Lead Global Cities Property Price Growth by Property Wire