Leading Cities' Luxury Home Price Growth Halves

Luxury residential property prices in the world's prime cities grew 6.8% in the quarter ended June, half the year-earlier growth rate of 13.5%, according to the findings of a global survey issued Thursday.

Property consultancy Knight Frank LLP said the reduced rate of growth in its prime global cities index was still better than in mass markets, where prices are weakening. It defines prime as the top 5% of the mainstream housing market.

"With growing concerns over sovereign debt and even for the outlook of the global economy, it seems likely that this process will continue--with still lower growth in the world's prime city markets a likelihood," said Liam Bailey, head of residential research at Knight Frank.

Hong Kong topped the list in the second quarter with its luxury housing prices posting annual growth of 16.1%, ahead of St. Petersburg with 12.2% and Paris with 10%.

The index is compiled on a quarterly basis using data from Knight Frank's 209 offices in 47 countries.



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