_Hong Kong, Singapore, and Sydney rank top 10 cities for ultra-prime (US$25m+) residential sales

Singapore – According to the latest edition of The Wealth Report, Knight Frank’s flagship report – Hong Kong, Singapore, and Sydney remain the critical cities for the world's wealthy with more ultra-prime property transactions (US$25m+) in 2022 than in any other global market. 345 transactions took place for super-prime (US$10m+) sales and 53 transactions for ultra-prime (US$25m+) in these cities.

Christine Li, Head of Research at Knight Frank Asia-Pacific, shares: “2023 is turning into a pivotal year for real estate in the region. It is time to look beyond a year of ‘Permacrisis’ (defined as an ‘extended period of instability and insecurity’ by Collins English Dictionary) where wealth creation takes a turn this year. In 2023, 45% of Asia-Pacific HNWIs are forecasted to experience an increase in terms of wealth as compared to 25% in 2022. This optimism and confidence are driven by asset repricing, perceived value opportunities and an expected economic rebound in the Asia-Pacific region. The abrupt reversal of Zero-Covid strategies on the Chinese Mainland has firmed prospects of residential markets in the region. While there are renewed inflationary pressures, the net effect can still be mitigated by more integrated trade flows and efficient supply chains. Although some time is needed for the impact to flow through, the return of Chinese buyers will likely boost transaction volumes for residential properties, particularly in the prime segments of the region’s gateway cities. As capital flows normalise, we believe there is scope for unlevered investors to take advantage of the current soft market for attractive entry opportunities.”

Victoria Garrett, Head of Residential at Knight Frank Asia-Pacific, adds: “Wealth preservation, safe-haven capital flight, and supply constraints played their part in driving prime price growth, but it was the post-pandemic surge that continued to push prices higher. For the world’s wealthy, this increased their appetite to buy, with 35% of the total wealth of Asia-Pacific UHNWIs allocated to their primary and secondary homes with 26% of their residential property held outside their country of residence and 16% of Asia-Pacific UHNWIs planning to buy a home in 2023. We have been seeing this trend through the growing number of international residential deals that have been transacted with a higher capital value from Asian investors with interest in residential properties located in the United Kingdom (London), United States (New York), Japan, Singapore, and Australia, indicating strong interest in outbound investments. The region’s economic growth story will remain urban-centric, and its residential investment landscape will continue to be defined by its prime urban cores. Underpinned by its high rates of urbanisation, investors can look forward to a more sustainable growth
trajectory and wealth preservation profile.”

Global Investment Opportunities Popular Among Asian Investors

1. Sydney, Australia Project in Spotlight - Maeve: Maeve is a new luxury residential development, a collection of 24 contemporary apartments and townhouses in Sydney’s wine region of Bowral in the Southern Highlands. Bowral-based Tziallas Architects designed the homes, with Chloe Matters Design as the interior designer, with the residences designed to provide the best of country life in Bowral, just 1.5 hours from Sydney’s Central Business District, with a cosmopolitan twist, perfect for investors seeking for a country holiday home.

2. London, United Kingdom Project in Spotlight – Chelsea Barracks: Situated in Belgravia, an affluent historic district in Central London, Chelsea Barracks is a world-class development comprising a rare collection of apartments, penthouses and townhouses, set around seven garden squares and built over 12.8 acres. A highly coveted central London address, this prestigious district is bordered by Sloane Street and the infamous King's Road; abundant with luxury stores, iconic boutiques, contemporary furnishing stores, and fine art galleries. An exceptional selection of the highest-ranking schools and universities in the United Kingdom are also within close proximity of Chelsea Barracks.

3. New York Project, United States in Spotlight – The Towers of the Waldorf Astoria: From its inception, The Waldorf Astoria was a true palace in New York City and a haven for cultural figures. Marilyn Monroe, Frank Sinatra and Elizabeth Taylor were regulars while in 1957 Queen Elizabeth II had a Royal Suite created for her stay and a gala dinner thrown in her honour. Timeless and opulent, Waldorf Astoria has a special place in the affections of New Yorkers, Americans, and international visitors alike. Now, ninety years after it first opened, the Waldorf Astoria is preparing for the next stage in its illustrious life with an extensive facelift to offer 375 branded residences for sale alongside 375 gracious hotel rooms and suites. For the very first-time buyers have the opportunity to own a piece of history.

4. Singapore in Spotlight – 14 Joan Road: A prestigious freehold Good Class Bungalow¹ (GCB) located in Singapore’s prime District 11 and within the serene Caldecott Hill estate. It sits on a regular-shaped land parcel of close to 30,000 square feet (sq ft) with a wide frontage of 53 metres and depth of 55 metres. Well-located GCBs like these remain highly sought after as they are tightly held for long-term wealth preservation and capital appreciation.

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¹ GCB is a term used by Singapore’s Urban Redevelopment Authority (URA) to qualify a bungalow that is located in any of the 39 gazetted GCB locations in the country, with a minimum land size of 1,400 square metres and maximum building height not extending over two stories.

Annex

High-end activity: The number of sales in super-prime (US$10m+) and ultra-prime (US$25m+) market segments across 10 global locations*

*Sources: Knight Frank Research, Douglas Elliman, Naef Prestige, HM Land Registry, LonRes
Exchange rate calculated as at 30th December 2022

For Asia-Pacific Residential Media Enquiries:
Satya Priya Rakappan
Residential Communications Specialist, Knight Frank Asia-Pacific
satya.priya@asia.knightfrank.com

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