Luxury house prices are falling fastest in Asia
Luxury house prices are falling fastest in Asia Nairobi (up 25%) was the strongest performer during 2011, Cape Town sits somewhere in the middle. The value of prime property in the world’s key cities rose by only 0.2% in the final quarter of 2011. Kate Everett-Allen examines the figures and looks at whether prime property is still the safe haven investors and the super-rich consider it to be. Although the Knight Frank Prime Global Cities Index, which tracks the performance of the world’s leading luxury residential markets, rose by 3% during 2011, the second half of the year saw the pace of growth slow considerably. The luxury housing market is now seeing the pace of price growth slip for the second time since the 2008/09 global financial crisis. In this latest cycle annual price growth peaked at 10% in Q2 2010 but has since slowed each quarter. After the collapse of Lehman Brothers European and North American cities were largely responsible for the index’s slump. Since late 2