Hong Kong, Dubai Lead Globe in Luxury Home Sales

When it comes to home sales above $10 million

Dubai and Hong Kong ranked first and second worldwide in the number of transactions exceeding $10 million, according to Knight Frank’s latest Global Super-Prime Intelligence report.

In the first quarter, Dubai saw 193 super-prime residential transactions worth more than $3.4 billion. Hong Kong recorded 94 super-prime residential transactions worth a total of more than $1.8 billion, representing a 16 percent quarter-over-quarter increase and a 17 percent jump in transaction value.

New York City ranked third globally with 90 transactions valued at almost $1.7 billion.

Altogether, Dubai, Hong Kong and New York accounted for nearly 60 percent of all super-prime residential transactions in the 12 global markets tracked by Knight Frank in the first quarter.

The increase in super-prime transaction activity shows higher-end markets despite higher borrowing costs globally and uncertainty around local policy.

The surge in deals was fueled by market comebacks in Dubai, Hong Kong, New York, Palm Beach and Singapore. In the 12 markets tracked by Knight Frank, transaction volume reached a one-year peak in the first quarter, though figures coming out of Dubai could look different for the second quarter as much of the first consisted of sales executed before the onset of the Iran war, according to the firm’s head of global research, Liam Bailey.

Hong Kong a 157 percent year-over-year increase in super-prime transactions for both single-family homes and condominiums, which have rebounded thanks to pent-up demand and limited supply.

With the rush of outside investor interest in the Hong Kong market came a wave of home flippers. In the three-month period ending in April, the city recorded 586 sales of homes within one year of purchase, representing more than double the number sold in the previous quarter, according to Midland Realty data.

— Chris Malone Méndez