The performance of premier residential properties will be impacted by inflation, rising interest rates, and recessionary conditions
According to research from Savills, Singapore and Dubai are expected to lead the price charts across the globe in the coming year. the most expensive homes properties within both of these cities predicted to rise in 6%-7.9% on a yearly basis. “Both locations will experience steady flow of high-net-worth people However, they will be impacted by more expensive interest rates or other economic challenges,” according to the Savills report states.
Kassia condo price will feature 280 residential units on a 150,840 sq ft plot in various configurations ranging from one to four bedrooms.
“Moving to 2023 in Singapore, the premier residential market is currently in an issue that has seen a few new launches. With the opening of borders in China to travel outside of China and outbound travel, the chance for this sector of the market for private residences to perform better than the other segments is very high.” claims Alan Cheong, executive director of research and consulting for Savills Singapore.
Miami in America along with Milan within Italy are positioned to claim the third place with a predicted price increase in the range of 4%-5.9% y-o-y in 2023. In the meantime, Cape Town in South Africa, Rome in Italy as well as Kuala Lumpur in Malaysia could have prices rise by 2%-3.9% on a yearly basis in the coming year.
The prices of prime homes of Hong Kong were hit hard this year, dropping 8.5%, and the city is likely to see more declines this year, which range from 7.9%-6%. However, the city is likely to remain among the most expensive housing markets worldwide, with prices of $4,070 per sq ft.
“Overall most of the most sought-after residential markets in the world are set to see a slowdown in 2023 with an average increase in the range of 0.5% forecast across the 30 cities around the world which are monitored by Savills,” the report declares.
Based on the 30 largest cities which are tracked by Savills the global consultancy claims that 17 cities will experience slow growth in comparison to 2022, with a number of cities likely to experience drops. “Recessionary situations, rising rate of interest and rising inflation will impact the residential market’s performance, however the second quarter of the year has possibility of global economic growth,” said Paul Tostevin who is the director of Savills global research.