China’s third biggest city Guangzhou saw luxury home prices surge 35.6 percent over the 12 months to June – the highest increase among 41 global cities tracked by Knight Frank, reported South China Morning Post.
This comes as luxury home prices in China are increasing from a relatively low price base compared with other expensive locations in the world.
But while Guangzhou leads the ranking, all three Chinese cities – including Beijing and Shanghai – tracked in the index posted a drop in annual growth compared with the rate registered in the previous quarter, revealed the consultancy.
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Beijing saw the biggest decline – from March’s 22.9 percent annual growth to 15 percent year-on-year in June.
Looking ahead, the huge increases in Chinese cities are not expected to last much longer, given the stricter cooling measures imposed by the Chinese government, said Kate Everett-Allen, Knight Frank’s international residential research head.
“We expect the rate of growth in Chinese cities to slow as cooling measures take effect. The number and type of regulations vary from city to city, but broadly speaking, buyers now need to put down larger deposits, and there are often limits on the number of properties that can be bought by individuals or families,” she said.
This article was edited by Denise Djong.