Despite Global Slowdown, Singapore And Dubai See Price Hike in Prime Residential Sectors
The capital values in the two wealth-attraction cities are expected to increase by 6 to 7.9%, making Singapore and Dubai the world’s two leading prime residential sectors by 2023.
In 2023, there won’t be a few new releases in Singapore’s upscale residential sector. The executive director of research and consultancy at Savills Singapore said that the potential for this area of the private residential market to exceed the others is very significant. China has recently reopened its borders to foreign travel.
Dubai’s anticipated increase in prime prices is modest compared to its projected increase in capital value of 12.4% in 2022. In December 2022, the average prime capital value was US $730 per square foot.
The average price growth for the 30 global cities tracked by Savills’ prime residential world cities index is predicted to be 0.5% in 2023, signalling a downturn in several premier residential markets worldwide.
Cities with small capital value growth
Lisbon, Athens, Rome, Milan, Barcelona, and Madrid are among the cities predicted to experience low to small capital value growth in 2023. The prime residential sector is highly sought after in these cities as a haven asset and inflation hedge during difficult economic times. Milan, which had the best performance in southern Europe in 2022 with a capital value gain of 5.7%, anticipates price growth of between 4% and 5.9% this year.
Asian prime residential sectors growth
Seoul and Tokyo had better years than other cities in Asia last year, with prime values increasing by 4.1% and 4.9%, respectively. The region’s yearly growth in 2022 ranged from 3 to -2%. However, growth is uneven across major Chinese cities. As Covid-19 limitations began to loosen in the second half of the year, Hangzhou and Shanghai experienced performance increases of 1.8% and 2%, respectively.
Savills predicts price growth of up to 3.9% in Hangzhou, Guangzhou, Beijing, Shanghai, and Shenzhen this year, despite national low prime property volumes, an indebted real estate sector, low consumer confidence, and slower economic growth putting downward pressure on price growth in China compared to previous years.
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