Super Luxury Home: Knight Frank’s recent data shows an 11% surge in global super-prime residential sales, valued at $10 million or more. In Q4 2023 versus the same period in 2022. This growth, reversing a prior slowdown, reflects a brighter global economic outlook, driven by anticipated interest rate cuts in 2024.. Dubai led with 108 sales, Super Luxury Home followed by London and New York, each recording 52 sales. Hong Kong’s sales dipped, dropping it from the top five markets for the first time.
While Q4 saw a rebound in super-prime sales, they remained 22% lower than the peak levels of 2021, yet surpassed pre-pandemic levels from 2019. The Wealth Report 2024 noted positive global wealth creation in 2023, driven by changing interest rate expectations. Performances in the US economy and equity markets. Despite soaring interest rates affecting housing markets, annualized super-prime sales continued to rise in recent quarters.
Knight Frank’s Global Head of Research, Liam Bailey, emphasized 2023 as pivotal for global super-prime markets. Climbing interest rates in the first half of the year were followed by a rebound in wealth creation as asset prices surged, driven by an equity boom. Lower rate expectations in Q4 further supported market activity. Bailey anticipates 2024 to be characterized by a shift to lower debt costs, stimulating activity in key global super-prime markets. Local markets like Dubai, London, and Geneva demonstrated resilience and positive performance, driven by factors such as significant price growth, improvements in the wealth landscape, and shifting buyer sentiment. Conversely, challenges faced by markets like Miami and Hong Kong include property shortages and regulatory changes affecting sales volumes. Read More…
