Global commercial property property prices declined in the second quarter of 2019, according to the latest RCA CPPI Global Cities report. Global commercial property price growth slowed in Q2 and prices increased by 4.4 percent year-on-year in Q2’19, rose by 0.3% from Q1.

”Storm clouds gathered on the horizon in Q2’19 with commercial property price declines across formerly high-flying markets. The clouds however are only bringing intermittent showers at this point and not a typhoon to inundate commercial property markets globally,” said in the report.

SEE ALSO : Global commercial property price growth continues to slow in Q1

North America posted the strongest price growth in Q2’19 with the composite index for the region up 6.0% YOY in Q2’19 and up 1.4% for the quarter. San Francisco leads this region with commercial property prices up 14.6% YOY in Q2’19. Even though San Francisco is expensive, investors are still finding tech sector driven opportunities.

Price growth across Europe was almost half that of the Americas with the composite RCA CPPI up only 3.2% YOY in Q2’19. The index fell 0.4% in Q2’19 from Q1’19; essentially flat.

The Asia Pacific region accounted for five of those declining metros, as only Tokyo saw an increase in prices this quarter. Hong Kong and Melbourne slipped the most, down 1.3% and 2.2% QOQ. It should be noted, the quarterly price declines in Hong Kong were underway before any recent difficulties.

Price growth in Melbourne declined 2.2% QOQ, while in Sydney prices were flat since last quarter. Both metros still boast a 30%+ cumulative increase in prices over the last three years.

Hong Kong’s declines were the sharpest, down 1.3%, and Singapore and Seoul followed with decreases of 0.6% and 0.2% respectively.

Price growth in the NYC Metro slowed to a pace of only 1.5% YOY growth. Commercial prices in Manhattan have dragged down the metro area, as prices in the city have fallen 2.9% YOY.