By Andrew Batt: Prime property prices in Bangkok are growing faster than anywhere else in the world, according to a new report published by Knight Frank.
In its Prime Global Cities Index report, the agency noted that prices for condominiums in prime central Bangkok have risen 29 percent year-on-year for the 12 months ending June 2012. The Thai capital also leads the world in six-month growth – with prices up 26 percent during the first six months of the year.
Prime property corresponds to the top 5 percent of the mainstream housing market in each city.
The report noted that the buoyant Asian markets kept the index in positive territory up until Q1 2012 when cooling measures, and in particular restrictions on second-home ownership, led to a fall of 0.4 percent in the first quarter of 2012. That said, Asia and Europe have proved critical to the index's recovery in the second quarter.
Prime prices in Asia rose by 3.4 percent in the year to June, the equivalent figure in March was -2.5 percent. Similarly, prime prices in Europe rose by 1.3 percent in the year to June, an improvement on the -3.4 percent recorded in the year to March.
The report added that Asia's resurgence in the second quarter can largely be attributed to the strong performance of its emerging markets, namely Jakarta and Bangkok, rather than its traditional powerhouses of Singapore and Hong Kong.
Andrew Batt, Regional Group Editor of PropertyGuru, said: "To anyone outside Southeast Asia it may seem somewhat surprising to see Bangkok leading the way in terms of prime property price growth. The fact is that property in the Thai capital represents a very compelling investment opportunity for local and overseas buyers alike."
Top 10 Cities ranked by 12-month price change between June 2011 and June 2012. 1 Bangkok 28.8% 2 Jakarta 28.5% 3 Nairobi 21.8% 4 Miami 13.4% 5 London 10.5% 6 New York 7.4% 7 Geneva 6.0% 8 Zurich 5.9% 9 San Francisco 4.2% 10 Cape Town 4.1%
Source: Knight Frank Prime Global Cities Index
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