Luxury home prices to rise 7% amidst strong Mainland China demand

Hong Kong is expected to post the largest price growth amongst major Asian urban markets.

Strong demand from Mainland China is projected to drive upward pressure on prime residential prices by as much as 7% next year, according to Knight Frank’s prime global residential forecast. 

Hong Kong, in particular The Peak, is expected to post the strongest growth amongst major Asian urban markets for the next year.

The Peak is the city’s most exclusive neighborhood and popular tourist attraction for its cityscapes. 

Knight Frank adds that the associated prestige and status of the city’s history and culture adds to Hong Kong’s appeal for prime homebuyers.

Singapore clinched the fifth spot with a projected 5% high-end property price growth as overall consumer sentiment brightens. 

“Robust economic growth and significant wealth creation will lead to continued demand for the high-end properties in Asia Pacific. Hotspots in our markets that are likely to attract attention are those benefiting from significant infrastructure improvements or a high level of exclusivity,” said Knight Frank Head of Research for Asia Pacific Nicholas Holt. 

Paris topped the list with an expected 9% rate increase as demand continues to outweigh supply and the economy maintains its positive trajectory under new leadership. 

European cities dominated the list with the rates of high-end properties in Berlin, Madrid and Geneva projected to increase by 7%, 5% and 3% respectively.

Photo from Diego Delso, CC BY-SA 3.0