Chinese city leads global house price growth as Europe lags behind
The Chinese city of Xi’an recorded the highest level of house price growth this year as Asia pulls ahead of a sluggish European market.
House prices in Xi’an, which is the capital of Shaanxi Province in central China, grew 20 per cent in the year to September, according to Knight Frank’s Global Residential Cities Index.
In March last year the Chinese metropolis eased residency requirements, leading to the arrival of more than 800,000 new residents.
The growth comes despite a recent slowdown in the Chinese economy amid a trade dispute with the US.
In a report published today the World Bank projected China’s growth to fall from a projected 6.5 per cent this year to 6.2 per cent in 2019, mainly due to weaker growth in investment and exports.
Xi’an was one of six Asian cities in the top ten rankings for this quarter, with Asia Pacific enjoying a surge of growth in the last 12 months.
Budapest recorded annual growth of 19 per cent, bucking the trend of sluggish European growth.
Glasgow led the eight UK cities tracked in the index, seeing growth of 10 per cent. But London saw prices slip 0.3 per cent as Brexit uncertainty continues to stagnate the market.
Figures released yesterday by the Office for National Statistics (ONS) yesterday showed the fall in house prices has now spread to suburban areas.
“Xi’an, home to over 12m residents and one of the leading cities in Western China, has been considered good value compared with cities in the same tier such as Wuhan and Zhengzhou,” said Kate Everett-Allen, partner at Knight Frank.
“This, combined with government measures to promote investment and attract talent has boosted demand.”