RCA Insights

Amsterdam, Hong Kong Lead Global Cities Q3 Price Gains

By on November 16th, 2017

Global commercial real estate price growth accelerated in the third quarter of 2017, led by price gains in Amsterdam and Hong Kong, the new edition of the RCA CPPI Global Cities report shows. The Global Cities Composite of the RCA CPPI climbed 9.1% versus a year earlier, marking the fourth consecutive quarter of faster price gains. The index rose 1.8% from a quarter earlier.

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Prices are reaching all-time highs in the Americas even though transaction volume has slowed. This price push comes from investors moving to the peripheral areas of major American markets for gains.

Of the Asia Pacific markets, prices in Hong Kong logged the strongest growth, up 20.0% YOY. This price gain was driven by an increase in investment from Chinese players in particular. Prices in Sydney, Melbourne, and Tokyo are also up year-on-year, as buyers compete for dwindling central market supply.

Amsterdam logged the largest price growth of all Global Cities markets, up 21.6% YOY. London prices rebounded after Brexit uncertainty a year ago, showing 7.8% YOY growth.

The RCA CPPI Global Cities report is published quarterly. To learn more about the RCA CPPI and to sign up for reports visit rcanalytics.com. If you are an RCA client you can also access this report and conduct your own CPPI analysis on the RCA website.