G
lobal prime residential property prices are slowly regaining momentum, with the annual growth rate ticking up to 3.2% in the final quarter of 2024, according to Knight Frank's Prime Global Cities Index. This modest increase still lags behind the 20-year average of 5.3%, but it marks a welcome improvement from previous quarters.

    Asian markets are driving this resurgence, with Seoul taking top honors as the city with the highest annual price growth at 18.4%. Despite facing political uncertainties, Seoul's luxury property market demonstrated remarkable resilience. Manila, on the other hand, experienced a mixed bag, with robust annual growth offset by a 7.6% price decline in the last quarter.

    Tokyo made a strong comeback in Q4 2024, posting a 10.6% quarterly rise after a previous decline. The city's luxury property market benefited from the weakened yen and foreign buyers seeking attractive investment opportunities.

    As regions converge towards the global average of 3.2%, North America's prime housing market has stabilized after years of volatility. Liam Bailey, Knight Frank's global head of research, notes that while inflation remains a concern, most experts predict further rate cuts in 2025, which could unlock higher house price growth in the coming year.

    The path to lower interest rates is becoming increasingly complex, but with many expecting a shift towards more accommodative monetary policies, the stage may be set for a stronger prime residential property market in 2025.