Residential Real Estate News
Global Luxury Residential Prices Showed Gradual Improvement in Late 2024
Seoul, Manila, and Dubai led the rankings for price appreciation in 2024
According to Knight Frank's latest Prime Global Cities Index, the growth of prime residential property prices worldwide is slowly gaining momentum. The annual growth rate climbed in the final quarter of 2024, reaching 3.2%. Although this marks an improvement from the previous quarter, it remains below the 20-year average of 5.3%.
Asian Markets Lead the Charge
Seoul emerged as 2024's top performer, with annual price growth surging to 18.4%, a sharp increase from Q3's 4.6%. The city's luxury property market showcased resilience despite political uncertainties. Meanwhile, Manila maintained robust annual growth but experienced a 7.6% price decline in the last three months of the year. Across the broader index, two-thirds of cities reported positive annual growth, with fewer than 20% experiencing declines.
Spotlight on Tokyo
Tokyo's luxury property market made a strong comeback in Q4 2024, posting a 10.6% quarterly rise 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.
Emerging Regional Balance
Over the past four years, the prime housing market in North America experienced significant volatility, shifting from pandemic-driven 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%.
Looking Ahead
Liam Bailey, Knight Frank's global head of research, noted, "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."
