Sydney property prices soared about 20 per cent in the 12 months from September 2014, but the harbour city was overshadowed by growth in three other global cities, new research shows.

Ranking fourth out of 165 other cities worldwide, the harbour city’s price growth was far outstripped by the top-performing city China’s Shenzhen, up 47.5 per cent, according to Knight Frank’s Global Residential Cities Index.

Shenzhen strong growth in 2015 was on the “back of the relaxation of policy restrictions which boosted market performance”, Kate Everett-Allen says in the report.

“Shenzhen is fast becoming one of China’s key technology hubs, its population of 10 million has an average age of 30.”

In total, five of Australia’s capital cities made it into the global top 100, while two declined in value. Hobart did not decline, increasing 1.7 per cent, but did not make the top 100.

Auckland, up 25.4 per cent and Istanbul, up 25 per cent ranked second and third for the highest price growth. Shanghai rounded out the top five with an annual increase of 18.2 per cent.

Overall, the 165 markets ranked increased 4.4 per cent collectively over 2015.

But Sydney’s strong performance on the list is not expected to last long. The Australian city house price data used in the ranking is based on the Australian Bureau of Statistics’ Residential Property Price Indexes from September 2014 to September 2015.

Since then, official data has found Sydney’s residential prices had been declining for the first time in three years, down 1.6 per cent in December.

It “wouldn’t be surprising” to see Sydney slip from its spot within the top five in future reports, Domain Group chief economist Andrew Wilson said.

“The [Sydney market] peaked in the June quarter and since September has come back sharply,” Dr Wilson said.

Sydney’s biggest price declines on record were in the past two quarters, They dropped below a $1 million median over the March quarter, Domain Group data shows.

The worst performer was India’s Chandigarh, which declined 7.7 per cent. Of the 43 cities that recorded price declines, 20 were based in Europe, with cities in Greece, Italy and Cyprus taking out four of the bottom five spots.

By world region, Australasia grew 6.7 per cent, falling behind the Middle East and Africa with property price growth of 12.4 per cent and 8.8 per cent respectively.

On a world region basis, Australasia ranked third for price growth over 2015. Photo: Knight Frank

The latest Global Residential Cities Index ranked 12-month growth from quarter four 2014 to 2015.

Melbourne, Canberra, Brisbane and Adelaide also made the top 100, at 77th, 81st and 85th position, though all three cities grew 4 per cent or less over the year.

Meanwhile, Darwin and Perth declined in value by 2 per cent and 3.3 per cent respectively and were ranked among the 25 worst markets globally. Perth ranked 152nd on the list.