Most cities register growth in home prices 

International property consultant Knight Frank's latest Global Cities Home Price Index shows that 94 percent of global cities saw home price increase over the past 12 months, up from 85 percent a year ago, according to World Property Journal.

City home prices are outpacing their national markets, which registered growth of 10.3% over the same period. Much maligned during the pandemic as the 'race for space' story took hold, the dynamism of cities is reasserting itself.

But the market cycle is shifting as large parts of the world move from a pandemic to post-pandemic landscape. Inflationary pressures are surging, and the cost of debt is increasing as interest rates track higher.

Knight Frank further states, set against this backdrop of heightened uncertainty, rising taxes and more property market regulations (e.g. a ban on foreign buyers in Canada), we expect the rate of price growth to slow in most markets but we think a sudden shift to negative price growth is unlikely for most cities in 2022.

Along with key fundamentals such as economic growth, supply levels and employment, the speed and scale by which interest rates rise will determine the extent of the slowdown in price growth over the coming year.

Inflation of 69% explains the dominance of Turkish cities at the top of the index. But the key headline is the performance of cities in North America, 12 of the top 20 rankings are occupied by US and Canadian cities this quarter with Halifax (34.7%) out in front.

Hot on their heels are Australian cities, which average 18.3% annual growth, with Brisbane (28.4%) the frontrunner.

Meanwhile, for economies who's monetary tightening cycle lags that of New Zealand, Auckland's path may be one to watch. Price growth in Auckland sits at 5.1% down from 22.7% a year ago. The country's five-interest rate rises since October 2021 has influenced buyer sentiment with residential sales falling 40% from 4,013 in Q1 2021 to 2,403 in Q1 2022, concludes Knight Frank.