Global luxury property prices grew at a slower pace in the third quarter, with an annual rate of 2.9% across 44 cities, according to Knight Frank’s Prime Global Cities Index. This marks the lowest annual rate of price growth this year and significantly below the 10-year average.
Central banks are expected to cut rates next year, which could boost luxury housing markets in the medium term. Liam Bailey, global head of research at Knight Frank, suggests that further rate cuts are needed before prices can strengthen.
The Philippines capital, Manila, saw significant annual price growth of 29.2% and a quarterly increase of 4.6%. Strong economic growth and rising consumer confidence drive this trend.
Dubai’s luxury market is stabilizing after a pandemic-driven boom, with a quarterly increase of just 0.5%. Annually, prices rose by 16.9%, as the city’s prime market soars 190% since early 2020.
Other notable cities include Los Angeles and Miami in the US, which saw annual price growths of 7.9% and 7.1%, respectively. Tokyo ranked third for annual price growth, with a 12.8% increase, but prices dropped 2.8% quarterly due to a strengthening yen and potential rate hikes.
London’s luxury market is also experiencing price drops, falling 2.1% annually and 0.3% quarterly in the third quarter.
Source: https://www.mansionglobal.com/articles/luxury-housing-markets-slow-globally-prices-surging-asian-cities-manila-d69b2c11?gaa_at=g&gaa_n=AWsEHT7GqmGuNPMzk5qsFmllsQ40mKZIAXdAb2Tzas8AAjbKwz6fo1Y2CViIc3v4U2kmtNJjUTkC1291l-RJ&gaa_ts=6727c8c1&gaa_sig=GLGbJHgeKW5mCuAncgjPl04TQwqTAs3WuBA7x6RQyk-TbAFJ6sBrX1mQwgdd37_pO9Ww_RRAKf4B4pUhARShzw==