Thu, 27 Jun 2019

Cape Town 19th on Prime Global Cities Index for Q1

News24
22 May 2019, 07:13 GMT+10

Cape Town came in 19th place out of 45 cities in the world monitored for Knight Frank's Prime Global Cities Index for the first quarter of 2019.

The index tracks the movement in luxury residential prices.

In Cape Town, the percentage change in luxury residential prices was 2.1% over the past 12-months and -0.1% over the past 3-months. Cape Town is the only South African city tracked in the index.

The latest index has registered its lowest rate of annual growth since the final quarter of 2009, when the world was experiencing the global financial crisis.

"Although still rising, the rate of wealth creation globally slowed in 2018. The last six months saw political and economic headwinds intensify," states the index report.

"In the first quarter of 2019, the threat of a global trade loomed, uncertainty surrounding Brexit peaked and the IMF projected that 70% of the world's economies would see a slowdown in growth in 2019. Add to this the rising cost of finance..."

These are the world's wealthiest cities - index

European cities continue to outperform with 7 of the top-10 rankings in the first quarter.

Berlin (14% over the past 12 months) came in tops in the rankings in the first quarter, followed by Moscow (12%); Frankfurt (10%), Tokyo (8.4%) Edinburgh (8%); and Paris (8%)

Berlin, Frankfurt, Edinburgh and Paris all share three key attributes, namely strong tenant demand, limited new supply and relative affordability.

In Canada the gap between Toronto (3%) and Vancouver (-15%) continues to widen.

Miami (3%) leads the four US cities tracked by the index.

New York (-5%) and London (-5.1%) are almost level, although London is arguably further ahead in its market cycle as new buyer registrations are starting to build, according to the index.

Nairobi, the only other African city tracked by the index, came in 42nd place with a 12-month change of -6.5% and a 3-month change of -0.5%.

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