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The number of super-prime home sales may be declining, but some cities are actually seeing an increase in ultra-luxury purchases.
The total number of houses that sold for $10 million or more dropped 2.4 percent when compared to the same period in 2022, but according to a recent report from real estate company Knight Frank, there were 362 super-prime residential transactions in the third quarter—defined as those that closed above $10 million—with Hong Kong, Dubai, Geneva, Miami, and Sydney all recording increases from last year.
The brokerage’s super-prime report analyzed residential transactions and sales volumes at $10 million and above across 12 global markets. “Super-prime activity has come off the 2021 peak, but our latest results confirm a market still seeing activity above pre-pandemic levels,” explained Liam Bailey, a researcher at Knight Frank, in the analysis.
Contrary to the overall slowdown, Dubai claimed the No. 1 spot with 89 home sales in excess of $10 million. For context, The City of Gold only had 58 sales in the same period last year. Similarly, there were 39 ultra-luxury sales in Hong Kong, up from just 19. Another thriving market has been Geneva, which also saw an uptick in the volume of super-prime home sales, up from 14 to 20. Lastly, in Miami, ultra-luxury residential sales increased from 21 to 26, and in Syndey, they rose from 18 to 21.
The number of homes that sold for more than $10 million decreased in cities including London and New York.
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London is technically right behind Dubai with the second-highest number of high-end home deals in Q3. The British capital clocked 51 $10 million-plus home purchases; however, that’s less than the 63 that were sold in the third quarter of 2022. New York also recorded a decline in sales, with mega-sales volume dropping from 43 to 34. “Higher debt costs will continue to weigh on the sector, but a lack of fresh new-build project launches in key markets like London and New York will impact sales in 2024,” said Bailey.
As a whole, the overall value of luxury sales is still impressive. In the last 12 months, homebuyers spent a whopping $31.7 billion on super-prime residences. To be fair, that’s below the wild $40.7 billion achieved just two years ago following the pandemic. However, it’s significantly higher than the $18.6 million splashed out in 2019. “Super-prime sales have been quite resilient compared to other residential markets,” added Bailey. “The recovery in travel and completion of new builds have helped support sales.”
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