APAC prime residential prices rise 3.6% as winners and laggards diverge

Tokyo led global rankings with a 58.5% surge in 2025.

Global prime residential markets continued to outperform mainstream housing in 2025, with average prices rising 3.2% across the 100 locations tracked in the Knight Frank Prime International Residential Index (PIRI), according to Knight Frank. This marks the second consecutive year of outperformance versus broader housing markets, with 73 markets recording annual growth and price gains increasingly concentrated in select global cities.

The Asia-Pacific region recorded average growth of 3.6%, though performance varied sharply. Tokyo led global rankings with a 58.5% surge, driven by strong demand for high-quality new-build homes. In contrast, Greater China markets remained under pressure, with Guangzhou down 12.2% amid softer sentiment, while Hong Kong recorded a 2.1% annual decline in prime prices.

Knight Frank highlighted widening divergence across global luxury housing, with momentum increasingly driven by wealth creation and selective urban demand rather than broad-based growth.

Liam Bailey, Editor of The Wealth Report at Knight Frank, said prime residential property is increasingly decoupling from mainstream housing, supported by sustained global wealth creation. He noted that ultra-high-net-worth individuals (UHNWIs) are increasingly “organising their lives across multiple jurisdictions,” with cities such as London shifting towards a “dip-in, dip-out” model driven by business, culture and connectivity rather than permanent residence.

A growing trend of ultra-mobility is also reshaping demand, with more UHNWIs spending fewer than 90 days per year in traditional hubs, supporting demand for super-prime rental properties.

In Hong Kong, despite a 2.1% decline in prime prices, activity at the top end strengthened. William Lau, Senior Director and Head of Residential Agency at Knight Frank, said the city saw one of the highest volumes of US$10 million-plus transactions globally, with 81 deals completed in Q4 2025. He attributed this to improved liquidity, inflows of mainland Chinese wealth, rising foreign buyer participation, and government talent admission schemes, reinforcing Hong Kong’s role as a regional capital gateway.