Home prices increased across prime urban markets in the second quarter of 2023, with the largest year-over-year increase seen in Dubai, according to Knight Frank’s Prime Global Cities Index for Q2 of 2023.
Across the 46 markets covered by the Knight Frank report, Dubai’s annual price growth increased the most, by almost 50% year-over-year. This marked the eighth quarter in a row of consecutive growth.
In fact, 57% of cities experienced increased house prices in the last quarter. Home prices in Tokyo increased 26% year-over-year, and Manila had an annual increase of 19.9%. Shanghai, China’s home prices increased 6.7%, Miami saw a 7.5% increase, and number 5 on the Knight Frank Prime Global Cities Index Q2 2023 is Singapore with an increase of 4.2% in home prices year-over-year.
Across the 46 cities included in the report, there was an average quarterly growth in prices of 1.5% from June 2022 until June 2023. While it is a decrease from the 10.2% peak at the end of 2021, it is the strongest rate of growth since the third quarter of 2022.
“Global housing markets are still under pressure from the shift to higher interest rates – but the latest results from the Knight Frank Prime Global Cities Index confirm that prices are being supported by: strong underlying demand, weak supply following disruption to new-build projects during the pandemic, and an ongoing return of workers to cities. As uncertainty over the direction of inflation appears to have reduced in recent months – price adjustments in many markets are likely to be less pronounced than was expected even three months ago.” Liam Bailey, Knight Frank’s global head of research.