Luxury homes take hit

The growth in luxury house prices around the world has slowed dramatically, as effects of the global credit crisis seep into the top tier of the property market.

The Knight Frank Prime International Residential Index found luxury apartments in locales such as London, Venice, Singapore and Sydney are sinking in price.

Last year, homes in Sydney dropped 12%, compared to luxury residences in Bangkok which rose 22.5%.

The downward trend reveals that no segment of the property market is immune to the credit crisis.