House prices have surged by 25.2% in Seoul in South Korea, making it the fastest growing prime market in the world.
After Seoul comes Tokyo in Japan (16.3%), and Dubai (15.8%) in the United Arab Emirates.
Knight Frank, which compared global markets across 46 cities, also noted that these three cities are also the fastest growing in the past five years – just in a different order.
Tokyo has seen the biggest five-year uplift (120%), followed by Dubai (107%) and Seoul (81%).
Seoul prices have surged thanks to low interest rates to boost mortgage affordability, investors in Tokyo have been boosted by a weaker Yen, while Dubai has seen an influx of international investors.
Liam Bailey, Knight Frank’s global head of research said: ‘A more complex economic outlook, particularly in the US, has added another layer of uncertainty.
“Strong underlying fundamentals, such as wealth creation and supply constraints in prime districts, will support prices, but a significant acceleration in the market is unlikely in the second half of the year.
“Prime markets are taking a collective breath. The recovery we have seen over recent quarters was aided by the expectation of lower borrowing costs, and with that timeline now pushed out, a cooling in price growth is inevitable.
“We’re seeing a more fragmented market, with some European cities showing surprising strength while former high-flyers in Asia begin to level off.”
London is currently showing a year-on-year reduction of -2.5%, while other markets seeing falling house prices include Hong Kong (14.3%), Guangzhou in China (8.9%), and Toronto in Canada (-6.7%).
Three quarters (75%) of cities saw positive house price growth over the past 12 months, at an average rate of 2.3%.