Luxury Home Prices From Hong Kong to Vancouver Will Fall Sharply, Knight Frank Says
Prices in India’s financial hub Mumbai, the nation’s most expensive property market, are also expected to drop
(Bloomberg) -- Mumbai, Vancouver, Hong Kong, Singapore and Buenos Aires will see the prices of luxury homes fall steeply as the coronavirus outbreak hurts demand, according to a Knight Frank study.
Prices in India’s financial hub Mumbai, the nation’s most expensive market, are expected to drop 5% in 2020 and 3% next year. Of the 20 cities Knight Frank analyzed, only four -- Lisbon, Monaco, Shanghai, Vienna -- will avoid falling into negative territory in 2020 either because of historic supply shortages or because transactions were able to continue during lockdowns.
Some markets are expected to rebound next year. These include:
| Strong Price Growth | Low Price Growth | Flat or Low Price Falls | Strong Price Falls |
|---|---|---|---|
| London, Lisbon | Berlin, Cape Town, Geneva, Los Angeles, Madrid, Melbourne, Miami, Monaco, Paris, Shanghai, Sydney, Vienna | Hong Kong, Mumbai, New York, Singapore | Buenos Aires, Vancouver |
Knight Frank’s predictions for India are in line with other analysts. India’s initial 40-day lockdown dented revenue by 11% for the country’s residential property market, according to estimates from Liases Foras. It predicts this will worsen to 33% if the world’s strictest shelter-at-home restrictions continue through June.
Residential sales stood at 45,200 units in January-March against 78,510 units during the same period last year across India’s top seven cities, and new launches fell more than 20%, according to Anarock Property Consultants.
©2020 Bloomberg L.P.