Top global property markets: 2014 forecast

Liam Bailey of Frank Knight gives his outlook on the top global property markets for 2014.

New York

Demand is strengthening in the prime market but so too is supply. Overall luxury prices should stay largely flat because of expanding supply and some vendors pricing themselves out of the market.

Hong Kong

Prime residential prices will fall owing to increased supply and stringent cooling measures. Residential prices will decline in the coming few years, but a significant correction is not expected.

Singapore

Recent cooling measures, such as hiking stamp duty and setting stricter limits on borrowing, should reduce prices by 1 to 2 per cent in the first half of the year. Demand should strengthen in the second half. Singapore remains a favoured choice for property investment, thanks to its stable economy, political system and property ownership rights.

Paris

Prime prices are at similar levels to five years ago and an increasing number of foreign buyers now see value in the market. We anticipate a softening of François Hollande’s political rhetoric and a gradual recovery in market confidence. Any monetary easing by the European Central Bank could hit the euro’s strength and attract buyers from outside the euro zone.

Sydney

There is strong underlying demand for prime residential property. The combination of low interest rates, a stable economy and demand from foreign buyers, particularly from South East Asia, should drive demand. Due to foreign ownership restrictions, foreign buyers tend to focus on new builds rather than established properties. Developers are fast-tracking new projects to take advantage of the strong market conditions.

Geneva

Following two consecutive years of decline, luxury prices should stabilise as buyer confidence improves on the back of more upbeat global economic indicators and a less critical euro-zone situation.

Dubai

The authorities have moved to tighten lending criteria in a bid to ease residential price growth, which has been running at a rate of 18 to 22 per cent a year. There are signs that transaction volumes have fallen as a result, but price growth should quicken again.

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