House price growth has fallen across Prime cities, dropping from 10.0%% in the first quarter of 2022 to 7.5% in Q2, as the post-pandemic surge begins to run out of steam.
The cities of Auckland, Wellington, Toronto and Stockholm have seen major reductions.
In Auckland, Australia, price growth has gone from 17.6% in Q1 2022 to just 1.0% in Q2, following a three-month drop of -0.9%.
In Wellington, New Zealand, growth has fallen from 5.2% in Q1 to -8.1% in Q2.
Toronto, Ontario, has seen annual growth of 24% fall back to 13.8%, while Stockholm, Sweden, has seen growth fall from 13.2% to 5.2%.
The research comes from Knight Frank’s global cities index.
The index said: “Rising mortgage rates and a weakening global economic outlook are cooling some of the ebullience of the last two years, but the slowdown will be felt most in lower price brackets and domestic-driven markets.”
Dubai’s annual house price growth is currently in the lead, at a huge 64.8%.
Asia, an outlier during the pandemic with only muted growth, has not only seen its strongest performers, Seoul and Tokyo, strengthen further but the luxury segment in some Chinese cities (Shenzhen, Beijing) and Indian markets (Mumbai) are showing signs of recovery.
In Europe Berlin (12.6%), Dublin (10.2%), Edinburgh (11.2%) and Paris (8.9%) are the fastest growing regions, as the appeal of urban living strengthens and international travel resumes.