Knight Frank has released its Prime Global Cities Index for the third quarter of 2022, which tracks the movement of the top five percent of each market across the globe, with the Gold Coast sitting at fifth on the list for total growth worldwide.

The glitter strip saw an 11.3 percent growth in property prices over the last year, with Australia’s total price growth sitting at six percent in the last 12 months. This sits just below the global average of 7.5 percent, down from a peak of ten percent recorded in the first quarter of 2022.

“Where increased mortgage rates have stunted the growth within our mainstream residential markets since mid-year, the ongoing global economic uncertainty and the flow on to other asset classes within wealth portfolios, have only recently started to impact the prestige residential market,” says Knight Frank Australia’s Head of Residential Research, Michelle Ciesielski.

“Australia’s collective prime residential price growth was six percent over the year to September 2022, although fell 1.2 percent in the third quarter after 9.1 percent annual growth recorded a year ago.

“In saying that, the number of prestige homes listed for sale remains relatively low across the major Australian markets and the number of days listed for sale has continued to fall from 90 days at the end of 2021, to 68 days halfway through 2022.”

Despite a worldwide annual growth of 7.5 percent, 19 cities saw prime prices decline between June and September 2022. Knight Frank expects these markets to bounce back thanks to resilient labour markets, a lack of supply and well capitalised lenders heading into 2023.

“We have seen the rate of change for prestige sales volume slow down collectively across Australia, though it was still 9.8 percent higher in the second quarter of 2022 and increased 27.1 percent over the year to this time,” Ciesielski says.

“As a result, we may start to see the number of days on market increase over the coming year with price growth to follow.”

Melbourne followed the Gold Coast as the next Australian region to chart, ranking 13th for overall growth (6.7 percent annual). Sydney was ranked 18th annually with a 5.4 percent growth, but has seen a decline of 2.5 percent in prices over six months. Brisbane and Perth were ranked 20th and 26th respectively, recording annual growths of 5.2 percent and 3.4 percent.

To view the report in full, click here.