Prices of luxury property in cities across the world slowed in the third quarter of 2013, with growth of just 1.2% compared with the 6.6% year-on-year growth, propertywire.com reported.
But the Chinese market is bucking the trend with a quarterly rise of 7.9%, according to the latest index from Knight Frank which tracks prime prices in 27 key cities.
On an annual basis, average prime property prices in Hong Kong remained unchanged while Jakarta and Dubai saw the strongest year-on-year growth at 27.2% and 21.8%, respectively.
The data also shows that the Middle East was the strongest region with the average price of luxury homes up by 13.1%, in the last 12 months.
Sustainable Property Market
Meanwhile, recent regulatory measures introduced to help sustain and regulate Dubai’s property market are already starting to take effect, with a recent cooling in the rate of growth, positioning the market towards a more sustainable pace of growth.
According to the latest research by international real estate consultancy, Cluttons, the steps announced by the United Arab Emirates’ Central Bank in October to set limits on the size of mortgage loans for housing, along with the Dubai Land Department’s recent doubling of property registration fees from two per cent to four per cent, are already impacting the volume of deals being recorded in Dubai’s residential market.