Asia is spearheading the global prime residential market recovery, accounting for four of the top five performing cities (Manila, Tokyo, Mumbai, and Delhi) led by Manila according to Knight Frank’s latest edition of the Prime Global Cities Index. 

Dominic Heaton-Watson, Associate Director, International Residential, Knight Frank Property Hub Malaysia, said: “Manila leads the global charge with a staggering 26.2% annual price growth, followed by Tokyo at 12.5%. Indian cities are also showing remarkable strength, with Mumbai's prime housing market surging 11.5% and Delhi up 10.5% year-over-year. The strong 11.1% price appreciation in Perth confirms the resilience of key Australian luxury markets – often favoured by Malaysian investors.” 

The Prime Global Cities index, which tracks luxury residential prices across 44 global cities, recorded an average annual growth rate of 4.1% in Q1 2024, marking the strongest growth rate since Q3 2022 before interest rates surged and monetary policies tightened. Quarterly price growth also strengthened to 1.1%, up from 0.3% in Q4 2023. While still below the long-term 5.4% annual average, the current 4.1% yearly increase represents a notable rebound from flat growth at end-2022.

Enoch Khoo, Managing Director of Knight Frank Property Hub Malaysia, mentioned: "Quarterly, price growth also showed signs of strengthening, with a 1.1% increase in Q1 2024, up from a 0.3% increase in the last quarter of 2023. This trend mirrors the Malaysian market, where rising prices have similarly indicated a strengthening economy."

Christine Li, Head of Research at Knight Frank Asia-Pacific, added: “Even among Chinese Mainland’s beleaguered property markets, prime residential prices in its tier-one cities have largely remained resilient, which rose by an average of 2.8% year-on-year in the first quarter of 2024. This is in stark contrast to the mass residential segment, demonstrating the resilience of the prime segment as an asset class that is shielded by less price-sensitive buyers and lower supply. With home buying curbs easing amid lowered down payment and mortgage rates, policies gradually rolled out by the Chinese government to stabilise its wider property markets are likely to creep into the prime segment and remain supportive of price levels for the rest of 2024.”

Liam Bailey, Global Head of Research at Knight Frank, said: “The rebound in global housing markets is continuing, as evidenced by our Prime Global Cities Index reaching 4.1% annual growth. Rather than heralding a return to boom conditions, the index indicates that upward price pressures are stemming from relatively healthy demand, set against continued low supply volumes. The pivot in rates – when it comes – will encourage more vendors into the market, leading to a welcome return to liquidity in key global markets.”

For further information, please contact Dominic Heaton-Watson, Associate Director, International Residential, Knight Frank Property Hub Malaysia as the details below.