Forget talk of a property bubble, global firm Knight Frank predicts that Australia's biggest housing market will see 10 percent growth in house prices this year, much higher than the 1.7 percent growth they expect in London and New York. Last year, Sydney outperformed 10 major cities in capital growth and topped Knight Frank's list of ten global cities in capital growth at an average 15 percent. Knight Frank's analysts Liam Bailey and Kate Everett-Allen predict more modest growth in 2016 due to a slowing economy, weaker sharemarket and the introduction of foreign investment fees. Knight Frank research shows Monaco, Hong Kong and London's cost of residential property is above an average $60,000 a square metre. New York is close to $40,000 a square metre. Sydney is on par with Geneva and Singapore at around the $20,000 to $30,000 a square metre mark. "​Events in the world's two largest economies look set to dominate proceedings in 2016. The scale of the slowdown in China and the speed of further US interest rate rises will determine the performance of property markets across developed and emerging markets alike over the next 12 to 18 months," said Knight Frank. The cities with the closest growth rate to Sydney are New York and Monaco at 5 per cent each. They expect prices to fall in Hong Kong, Singapore and Paris.