Prices in the prime residential property market in Bangkok, defined as the top 10 percent of the mainstream market, recorded the seventh highest growth for the 12-month period ending September 2015 – but the growth at the top end of the market does appear to be slowing.
According to the quarterly Prime Global Index produced by real estate firm Knight Frank, prices grew by 8.5 percent in the year ending September, but perhaps more interestingly is that growth was recorded as being 5.7 percent during the period between March 2015 and September 2015, and just 4.6 percent in the three-month period ending September.
Bangkok in seventh place of the 34 monitored cities, recorded the third-highest 12-month price growth in Asia for the year ending September, behind Shanghai (10.7 percent and third globally) and Jakarta (9.4 percent and fourth globally). Singapore finished bottom with a 12-month price decline of 7.9 percent according to the Knight Frank research.
Globally, the Prime Global Cities Index increased by only 1.9 percent in the year to September 2015, but this conceals some standout performances by cities such as Vancouver and Sydney.
Kate Everett-Allen, Partner Residential Research for Knight Frank, said: “Vancouver leads the rankings for the second consecutive quarter, with prime prices in the city up by 20.4 percent in the year to September.
“Supply is tight with the number of homes for sale down 32 percent year-on-year, and local demand is strengthening alongside foreign interest.”
Looking beyond the top rankings, the overall performance of the Index is less robust. The Index now stands 34.1 percent above its low in Q1 2009, but its annual rate of growth has slowed significantly from 7 percent two years ago to 1.9 percent now.
She added: “Around 73 percent of cities recorded positive annual price growth in the year to September; two years ago this figure was closer to 91 percent.”
