Seoul, Manila, and Dubai Lead in Price Appreciation
The global luxury residential property market experienced a modest uptick in the final quarter of 2024, with prime residential prices across 44 major cities increasing by 3.2% annually. This marks an improvement from the previous quarter, though it remains below the 20-year average growth rate of 5.3%.
Asian Markets at the Forefront
Seoul emerged as the top performer in 2024, with annual price growth surging to 18.4%, a significant rise from the 4.6% reported in the third quarter. This robust performance underscores the resilience of Seoul’s luxury property market amidst political uncertainties.
Manila also demonstrated strong annual growth; however, it faced a 7.6% price decline in the last three months of the year. Overall, two-thirds of the cities in the index reported positive annual growth, with fewer than 20% experiencing declines.
Tokyo’s Market Rebound
Tokyo’s luxury property market made a notable comeback in the fourth quarter of 2024, recording a 10.6% quarterly increase following a previous decline. Despite Japan raising interest rates to a 17-year high—contrary to trends in other developed economies—the weakened yen continued to attract foreign buyers to the market.
Regional Market Dynamics
Over the past four years, North America’s prime housing market has experienced significant volatility, transitioning from pandemic-induced surges to slowed growth during periods of rising interest rates. By the end of 2024, growth rates across all regions converged near the global average of 3.2%, indicating a more balanced market landscape.
Outlook for 2025
Liam Bailey, Knight Frank’s Global Head of Research, commented on the future trajectory: “The path to lower rates has become more complex as inflation in developed economies remains stubbornly high. However, with most experts predicting further rate cuts in 2025, this may unlock higher house price growth in the coming year.”
As the global economy continues to navigate uncertainties, the luxury residential property market’s performance will depend on various factors, including monetary policies, geopolitical developments, and consumer confidence.
