KUALA LUMPUR: The Prime Global Cities index recorded an average annual growth rate of 4.1 per cent in the first quarter of 2024 (1Q 2024), marking the strongest growth rate since 3Q 2022 before interest rates surged and monetary policies tightened.
In Knight Frank's latest edition of the Prime Global Cities Index, which tracks luxury residential prices across 44 global cities, the real estate agency said the growth represents a notable rebound from flat growth at end-2022.
In a statement today, Knight Frank Property Hub Malaysia managing director Enoch Khoo said quarter-on-quarter, price growth also increased by 1.1 per cent in 1Q 2024, up from a 0.3 per cent increase in 4Q 2023.
"This trend mirrors the Malaysian market, where rising prices have similarly indicated a strengthening economy," he said.
Knight Frank global head of research Liam Bailey said the 4.1 per cent growth was a sign of the rebound in global housing markets.
"Rather than heralding a return to boom conditions, the index indicates that upward price pressures arestemming from relatively healthy demand, set against continued low supply volumes.
"The pivot in rates – when it comes – will encourage more vendors into the market, leading to a welcome return to liquidity in key global markets," he said.