Global Ultra-Luxury Home Sales Decline in Q3, Knight Frank Report Shows

A recent report by Knight Frank indicates a 2.4% decrease in global super-prime residential sales during the third quarter of 2023 compared to the same period in 2022. The report, which covers 12 markets, highlights a total of 362 sales in the three months leading up to September, down from 371 in the previous year. This decline mirrors the broader trend observed in the world's mainstream markets, where residential sales have experienced a year-on-year drop of 20% to 30%.

Global super-prime residential sales have experienced a 2.4% decline in the third quarter of 2023 compared to the same period last year, according to a new report by Knight Frank. The report covers 12 markets and reveals a total of 362 sales in the three months to September, down from 371 in 2022. This decline is reflective of the broader trend in the world's mainstream markets, where residential sales have dropped by 20% to 30% year-on-year.

The primary factor contributing to this decline is the significant increase in finance costs over the past year, which has impacted affordability and market accessibility. Despite this overall slowdown, the super-prime markets have shown more resilience, with a relatively modest 2.4% decrease in sales in the 12 markets covered by the report. The annualized data also indicates a 4.1% decrease in sales over the 12-month period ending in September 2023, compared to the previous year.

The total value of super-prime sales over the most recent 12-month period stands at $31.7 billion, a decrease from the post-pandemic high of $40.7 billion in 2021 but still significantly higher than the pre-pandemic total of $18.6 billion in 2019.

The report highlights the impact of new-build completions on the super-prime market, with strong sales volumes in 2021 partly attributed to delayed completions from the previous year. However, as the effects of the pandemic on new project starts begin to be felt, the tailwind from new build sales is expected to weaken in 2024.

The international nature of super-prime markets has also played a role in sales performance, with the recovery in travel volumes throughout 2023 supporting sales. Five markets, including Hong Kong, Dubai, Geneva, Miami, and Sydney, saw an increase in sales in the third quarter of 2023 compared to the same period in 2022. Dubai continues to lead Knight Frank's ranking of quarterly sales, followed by London and Hong Kong.

While global super-prime residential sales have experienced a decline, the market has shown resilience in the face of broader economic challenges. The impact of new-build completions and international travel trends will continue to shape the trajectory of super-prime sales in the coming year.