Posted by Jonathan J. Miller -Tuesday, May 15, 2012, 1:57 PM
Knight Frank’s Prime Global Cities Index showed more weakness this quarter.
The first three months of 2012 brought with it little new momentum. The Eurozone’s debt debacle remained at the forefront of the global economic agenda, several critical elections were on the horizon (Russia, France, Greece) and Asia’s highly-effective cooling measures showed no sign of being relaxed. Against this backdrop some luxury buyers took to the side-lines to observe their market’s trajectory.
Primary markets seem to be cooling off a bit. I thought the conclusion was quite powerful.
The safe-haven argument still resonates. Capital flight will continue to focus on cities with low political risk, transparent legal systems, good security and ideally those with an HNWI-friendly tax regime.
- Prime world city markets turn negative [Global Briefing/Knight Frank]
- Prime Global Cities Index Q1 2012 [Knight Frank]