Prices for luxury homes and apartments in Guangzhou are rising faster than any other city in the world, according to the latest 'Prime Global Cities Report' by Knight-Frank LLP, a UK-based residential and commercial property consultant.
In the first quarter of 2017, luxury houses, defined by Knight-Frank as properties in the top 5 percent of the market of any given city, rose in value by 36.2 percent in Guangzhou.
Two other Tier-1 Chinese cities round out the top four in the Knight-Frank report. Beijing, whose premium home markets expanded at 22.9 percent, was the second fastest growing luxury property market. Luxury home prices rose 19.8 percent in Shanghai, good for fourth place after Toronto, which saw a 22 percent increase in prime property prices.
Kate Everett-Allen, a partner in the Knight-Frank consulting firm concedes the surge is partly because "prices in Guangzhou are rising from a lower base than in Shanghai and Beijing, the availability of residential stock is tighter, and policymakers in the city were slower to introduce cooling measures which are now widely evident across most tier-one cities."
Guangzhou also topped a 2015 Knight-Frank list detailing the fastest rising rents for luxury properties. In 2015, rates for prime properties rose 6.2 percent. This more than than doubled the margin of increase of its nearest rival, London, where prices for luxe homes rose 'only' 2.4 percent.
As Mugatu would say, "That Guangzhou is so hot right now."
[Cover image via Skyrisecities.com]
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