Asia boasted having the city with the fastest rate of growth in the price of prime properties as measured by Knight Frank, the global property firm. Jakarta, with a growth rate of 28.5 per cent in the year to September, was top of the heap. However, Asia by no means dominated the rankings for such growth compared with other regions, the data showed.

Four other cities - Dubai, Miami, Nairobi and London -
recorded double-digit price growth in the year to September, according
to Knight Frank. While buyers await clearer signals as to the downside risks for the
global economy, luxury bricks and mortar look to be retaining their safe
haven status.

"The results this quarter suggest that demand for luxury homes is only
loosely linked to the strength of regional economies (Asia Pacific has
only two cities in the top ten compared to Europe’s three). Instead,
the flow of international wealth and the attitudes of HNWIs are
increasingly influential," the firm said. 

The Prime Global Cities Index shows that while 58 per cent of cities
recorded flat or positive price growth in the 12 months to September,
this had risen to 77 per cent in the third quarter. Cities in Europe
were the weakest performers, recording a fall of 0.5 per cent on average
over 12 months.

The results suggest that demand for luxury homes is only loosely
linked to the strength of regional economies. Instead, the firm says,
flow of international wealth and the attitudes of HNW individuals are
increasingly influential.

Cities such as Dubai, Miami, Nairobi and
London are increasingly considered investment hubs for HNW individuals
in their wider regions. In the wake of the Arab spring, Dubai has been
seen as a relative safe haven for buyers from the Middle East and North
Africa, while Venezuelan and Brazilian investors have looked to Miami to
limit their exposure to domestic political and economic volatility.

The Knight Frank Prime Global Cities Index monitors the performance
of prime property markets across key global cities. Prime property
corresponds to the top 5 per cent of the mainstream housing market in
each city. The index is compiled on a quarterly basis using data from
Knight Frank’s network of offices and research teams.