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Outside of China, a Canadian city was where home prices increased the most anywhere on the planet in the third quarter this year.
Vancouver placed ninth on the latest reading of Knight Frank’s Global Residential Cities Index, behind eight Chinese cities.
The third-quarter index and report, which covers 150 global cities, showed Vancouver home prices had increased 24 per cent from the same period in 2015.
Three other Canadian cities cracked the top 30, including Victoria in the fifteenth spot for home prices that surged 17.9 per cent on a year-over-year basis.
Meantime, Toronto placed nineteenth for price gains of 16.4-per-cent, and Hamilton came in at number 27, having seen home prices climb 13.1 per cent from a year ago.
Vancouver may have been the highest-ranking Canadian city, but it fell several places on the index from the previous quarter when it was in the fifth position. Still, that doesn’t mean price gains in the city were skidding in Q3, suggests the report.
“This shift is not as a result of slowing prices,” writes Kate Everett-Allen, an international residential researcher for Knight Frank.
The year-over-year price gains in Vancouver are roughly in line with what was seen in the previous quarter, she notes.
Instead, Everett-Allen attributes the slide to “the phenomenal ascent of the Chinese cities which have supplanted it.”
Nanjing, Jiangsu Province’s capital, topped the index with an eye-popping 42.9-per-cent year-over-year price gain in the third quarter.
It edged out Shanghai, China’s centre of commerce and most populous city, which saw prices skyrocket 39.5 per cent over that same 12-month period.
Both catapulted ahead of Shenzhen, last quarter’s leader, where prices were up 34.5 per cent year-over-year.
“Urbanisation and rising household wealth are behind the surge in Chinese prices but it is far from uniform with smaller cities and rural markets lagging behind,” Everett-Allen explains.