September 11, 2012:
Back in July, Knight Frank had released their Q2 Prime Global Cities Index, indicating that the world’s key urban centers had experienced its greatest growth since 2010, despite cooling measures that inhibited growth at the start of 2012.
The Index, which tracks the performance of the top 5% of mainstream housing markets, indicated that this growth was largely created by Asia’s emerging markets such as Jakarta and Bangkok, and (to a lesser extent) Europe.
Asia’s prime prices had experienced a growth of 3.5% as opposed to -2.5% in March. Europe’s prime prices, on the other hand, had experienced growth of 1.3% – an improvement over the -3.4% back in March.
Also, as indicated by the positive performance of some established cities in Europe and the US, another trend indicated by the index is that investors are currently pursuing a “flight to safety” objective, seeking out those cities that are the most sheltered from the EU debt crisis. In All Points’ experience, this is supported by the fact that despite a tepid economy, several Canadian cities are seeing increased rental prices, which will have impact on expatriate assignments into Canada.
Source: Knight Frank