Sydney currently ranks third in the world for luxury residential annual price growth, according to a global index for investors and developers.
Knight Frank’s Prime Global Cities Index tracks price movements of prime property across 35 cities worldwide and Sydney has been steadily climbing up the ranks to now sit behind just Vancouver and Miami.
The index looks at the top five per cent of the wider housing market in each city and is designed to allow investors and developers to monitor and compare the performance of prime residential prices across key global cities.
Vancouver took out first position with 15 per cent annual price growth to June 2015, followed by Miami with 13.9 per cent and then Sydney with 12.5 per cent.
Knight Frank partner Kate Everett-Allen said “low interest rate environments, expanding economies and safe haven capital flows have proven influential market drivers” for the top three cities.
“Closer analysis shows that whilst more cities are recording positive annual price growth the number of exceptionally strong performing markets has declined,” Ms Everett-Allen said.
“A year ago eight cities recorded double-digit annual price growth. This quarter only four cities fell within this bracket.”
Sydney played a big part in putting Australasia well in front as the top-performing world region with an average annual price growth of 10.2 per cent.
Africa followed at 4.1 per cent, then North America at 3.7 per cent and then Asia at 3.0 per cent.
Russia, Middle East and Europe brought up the rear with 1.3 per cent, 1.0 per cent and 0.8 per cent annual price growth respectively.