SINGAPORE (EDGEPROP) - According to research by Savills, Singapore and Dubai will lead the global price charts this year, with prime residential properties in both cities forecast to increase by 6%–7.9% on a yearly basis. “Both cities will continue to see sustained inflows of high-net-worth individuals; however, they are not immune to higher interest rates and wider economic headwinds,” the Savills report says.

“Moving into 2023, Singapore’s prime residential market is facing a situation where there are few new launches. With the reopening of borders in China to outbound travel, the potential for this segment of the private residential market to outperform the others is very high,” says Alan Cheong, executive director of research and consultancy at Savills Singapore.

Miami in the US and Milan in Italy are tied to take the runner-up position, with expected price growth of 4%–5.9% y-o-y in 2023. Meanwhile, Cape Town in South Africa, Rome in Italy, and Kuala Lumpur in Malaysia could see prime prices increase by 2%–3.9% on a yearly basis this year.

Prime prices in Hong Kong were hit hard last year, slipping 8.5%, and the city could see further declines this year of 7.9%–6%. But, the city is expected to remain one of the most expensive prime residential markets in the world with prices at about $4,070 psf.

“Overall, many of the prime residential world city markets are set for a slowdown in 2023, with an average price growth of 0.5% forecast across the 30 global cities monitored by Savills,” the report says.

Based on 30 major cities tracked by Savills, the international consultancy says that 17 will record slower growth compared to 2022, with several cities likely to post declines. “Recessionary conditions, a higher interest rate environment and inflation will weigh on prime residential performance, although the second half of the year holds some potential for global economic growth,” said Paul Tostevin, head of Savills world research.

Read also: Luxury Dubai beachfront apartments Orla launched for sale