Global prime property markets prices predicted to fall in 2012

After two years of growth the heat is starting to come out of the world's prime residential markets, particularly in Asia, according to the results of the latest Knight Frank Prime Global Forecast.

Prices are predicted to fall in 44% of the cities monitored during 2012, with a similar amount likely to experience price rises. Values are expected to remain unchanged in 12% of the cities.

The slowdown in luxury price performance is most evident in Asia, with 60% of cities predicted to see a fall in values. Growth has been curtailed by government fiscal policy measures designed to reduce the risk of spiralling inflation and over heating in property markets.

In Hong Kong and Shanghai, luxury homes have gained in value by just 7.8% and 3.8% respectively over the past 12 months, down from 19.7% and 29.7% a year earlier.

Source: PropertyWire.com