4hw.com.cn: what's going on in the cities with the most price rise? What are the cities with the most price rise? The top ten cities with the most price rise in the world: this country has four seats.
According to the latest data released by Knight Frank, house prices in Berlin, Germany, rose by 20.5% in 2017, ranking first in the world. The three main reasons for high house prices in Berlin are the surging population, rising rents and the influx of foreign investors.
Four cities in Germany
In the list of the top ten cities with the largest increase in house prices in 2017 released by Lafite, four cities in Germany are on the list. In addition to the capital Berlin, Hamburg, Munich and Frankfurt are all on the list. Among them, compared with 2016, Hamburg's house price increased by 14.1%, ranking seventh; Munich's house price increased by 13.8%, ranking eighth; Frankfurt's house price increased by 13.4%, ranking tenth.
Berlin is closely followed by Izmir, Turkey's coastal city, with house prices rising 18.5%. The third place was Reykjavik (16.6%).
Previously, in order to curb the sharp rise in house prices, the British Columbia government of Canada introduced a new deal on house prices in the province, especially in Vancouver, the capital city. The British Columbia government announced a 15% property transfer tax on foreign buyers (except Canadian citizens and permanent residents). The tax rate is eight times higher than before. The effect of the new deal is also very obvious, which has cooled the housing market in the fanatical Vancouver area. According to the data of lafun, although the price of Vancouver rose by 16% last year, it has dropped out of the top three and ranked fourth.
In addition, Hong Kong, China (14.8%), Budapest, Hungary (15.5%) and Rotterdam, the Netherlands (13.4%) are the top 10 cities in terms of price growth.
Due to the impact of brexit, the price increase in London, the capital of the UK, slowed down to just 2%, ranking 101st. Auckland, New Zealand, which was once hot, also ranked 99th with a growth rate of only 2.2% due to the government's price control measures.
Guard against house price bubble
For the eye-catching performance of house prices in Berlin, lafun did not express surprise in its analysis. This is the final result of years of rising house prices in Germany. Since 2004, prices in Berlin have risen by more than 120% on average, according to data from lafun.
Behind the high housing prices in Germany's big cities, such as Berlin, is an influx of migrants. Berlin is already the most populous city in Germany. German media had previously studied the future population development prospects of Germany's major cities, among which Berlin, Munich and Frankfurt will be the fastest growing cities in Germany.
In the past five years, Berlin's population has increased at a rate of 50000 per year, and now it has developed into a big city with a population of 3.5 million. Lafun predicts that by 2035, the population of Berlin will increase by 14.5%, 13 times the average growth rate of Germany.
In addition to population, Berlin's housing prices, which are lower than those in other major European cities, have become the 'hot spots' for foreign investors. Even though Berlin's house prices are rising by 10% a year, they still can't catch up with New York or London. For example, an apartment in the center of Berlin can be sold two-thirds cheaper than an apartment of the same size and location in London. Therefore, it is not difficult to understand that foreign investors are flocking to the Berlin real estate market, whether it is the ordinary residential market or the commercial real estate market.
Just last month, Warren Buffett bought a high-end real estate in Berlin for 3.8 million euros. On the German search website, immowelt.de, in Neuk, a trendy new landmark in southern Berlin? LLN's apartment, which costs just 175000 euros, is called the 'most discerning investment' by the sales agent.
In terms of commercial real estate, Ontario pension investment fund of Canada invested 1.1 billion euros in Sony Center, a large-scale complex project of Potsdam square, in October last year. The Norwegian pension investment fund also invested 400 million euros in the headquarters of Axel Springer, Europe's largest digital media group.
In addition, as the 'Silicon Valley of Europe', a large number of Internet companies are pouring into Berlin, which also drives the capital market. World famous Internet companies such as Google, Facebook and Amazon all set up branches in Berlin. Top investment companies in Europe and the world are also looking for good projects and venture capital in Berlin. Therefore, the development of Internet industry will inevitably drive the development of local real estate market when attracting high-end talents from all over the world to settle in Berlin.
For such a significant increase in house prices, the Bundesbank has long been concerned about this phenomenon. In February, the Bundesbank warned of possible bubbles in property markets in big cities such as Berlin. According to the Bundesbank, property prices in many German cities are inflated by at least 15%, which could be as high as 35% in Berlin.
At present, the city of Berlin is closely following the implementation of the Vancouver government's tax on foreign home buyers. It is not excluded that in the future, the Berlin government will also curb the overheating of local house prices through a tax mechanism for foreign buyers.