Luxury home prices in many Asian cities are rising, bucking the downward trend in established markets, including New York and London. According to Knight Frank, prime property prices, representing the top 5 per cent of the market, fell by 0.3 per cent in New York and 1 per cent in London in Q4 2024 compared to the same period the previous year. While New York's luxury market shows signs of recovery, London is struggling after its worst performance since 2020. Other cities like Hong Kong, Frankfurt, and Melbourne also saw declines.
However, luxury home prices soared in Seoul, Dubai, and Tokyo, gaining 18 percent, 17 per cent, and 13 per cent, respectively. Despite challenges like higher borrowing costs and political instability, prime real estate prices are seeing positive growth, driven by strong economic performance and demand from wealthy investors. The 44 cities analysed in the report saw average annual price growth of 3.2 per cent.
In Seoul, housing prices surged even amid political unrest. Dubai's luxury housing market is booming, with extravagant US$100 million mansions aimed at attracting the ultra-rich. Despite higher borrowing costs, Tokyo, benefiting from a weakened yen, has seen an influx of foreign buyers.
Knight Frank's prime property index showed its best performance since Q1 2024, with 4.1 per cent annual growth. While high inflation and interest rates have dampened demand, 34 of the 44 cities analysed in the last quarter recorded year-over-year price increases.
