The prime residential sector has surged ahead of the mainstream for the first time since the start of the pandemic, but not in London.
Knight Frank’s latest Prime Cities survey has shown an 8.2% increase over the year, while mainstream prices rose by 7.3%.
Toronto has led the pack. The Canadian city has seen prime prices pick up by 15.5% in the past three months – and 27% over the year. Other cities in North America averaged 16% over the year, with Miami in fifth place on 18.7%. Asian cities also fared well, with Shanghai, Guangzhou and Seoul filling out the top five.
In total, 76% of cities showed prime growth, albeit at a lower average level than previous years.
But that rise in fortunes has not been shared by London. The UK capital has seen prime properties rise by just 0.7% over the year, and a mere 0.5% over the quarter.
New York has fared even worse, with prime prices falling by 3.7% over the year. Dubai suffered a similar fall, while Paris dropped by 1.5%.
Knight Frank was keen to point out that this had more to do with travel restrictions than anything structural.
“We expect to see London, New York, Paris and Dubai move up the rankings in Q3, as travel restrictions ease and international buyers start to recognise the relative value in these cities,” it said.
Conversely, China’s star could soon fall, as the government’s planned property taxes move closer to reality.
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