Moscow House Price Growth Was The Second In The World
Source: http://pdf.savills.com
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According to real estate market study prepared by Savills, Moscow was in second place among world's 10 largest cities with the house price growth during the first semester of 2012.
This year undisputed leader in the growth of house prices is Hong Kong with 7.4 percent growth. Mainstream residential prices are at record levels due to strong local demand. Despite this the easing of mortgage availability also has helped to underpin the market.
On the second and third places were Moscow and Sydney with 5.5 and 3.7 percent growth respectively. As analysts stated, this three cities were ahead of a modest average index for all 10 cities, which is only 1.2 percent.
The cities that have seen residential markets have been beyond by domestic demand (Hong Kong, Moscow and Sydney) rather than international; buyers and investors. Meanwhile, international capital appears to be retreating to the "core" of established world cities due to their long-term investment credentials - namely London and New York (house price growth was 2.8 and 1.1 percent respectively). Some "new world" cities that had begun to see price falls following specific government intervention, or the impact of a slowing global economy, rebounded in H1 2012 (Hong Kong 7.4 percent). The weight of Chinese money continues to push into this city, but most of this growth can be attributed to a strengthening local market, aided by increased bank lending.
At the other end of spectrum, some "old world cities" that had previously appealed, because of their safe haven credentials saw prices falls at the beginning of 2012, notably Paris (-3.4 percent). Here the Eurozone crisis, coupled with president Hollande's proposed taxes on the wealthy, weighed on the upper tiers of the Parisian residential market. In London, some prime market activity and price growth slowed in the wake of uncertainty regarding new stamp duty rules that were announces in the March budget.
This year Shanghai saw price falls in the wake of an allowing domestic economy and ongoing cooling measures (-2.6 percent). The first price falls have also been recorded in the previously red-hot Mumbai market (-1.7 percent).
This year undisputed leader in the growth of house prices is Hong Kong with 7.4 percent growth. Mainstream residential prices are at record levels due to strong local demand. Despite this the easing of mortgage availability also has helped to underpin the market.
On the second and third places were Moscow and Sydney with 5.5 and 3.7 percent growth respectively. As analysts stated, this three cities were ahead of a modest average index for all 10 cities, which is only 1.2 percent.
The cities that have seen residential markets have been beyond by domestic demand (Hong Kong, Moscow and Sydney) rather than international; buyers and investors. Meanwhile, international capital appears to be retreating to the "core" of established world cities due to their long-term investment credentials - namely London and New York (house price growth was 2.8 and 1.1 percent respectively). Some "new world" cities that had begun to see price falls following specific government intervention, or the impact of a slowing global economy, rebounded in H1 2012 (Hong Kong 7.4 percent). The weight of Chinese money continues to push into this city, but most of this growth can be attributed to a strengthening local market, aided by increased bank lending.
At the other end of spectrum, some "old world cities" that had previously appealed, because of their safe haven credentials saw prices falls at the beginning of 2012, notably Paris (-3.4 percent). Here the Eurozone crisis, coupled with president Hollande's proposed taxes on the wealthy, weighed on the upper tiers of the Parisian residential market. In London, some prime market activity and price growth slowed in the wake of uncertainty regarding new stamp duty rules that were announces in the March budget.
This year Shanghai saw price falls in the wake of an allowing domestic economy and ongoing cooling measures (-2.6 percent). The first price falls have also been recorded in the previously red-hot Mumbai market (-1.7 percent).
