Seoul And Tokyo Lead Global Prime Residential Growth In 2026

Savills’ latest Prime Residential World Cities report notes that prime residential world city markets are expected to deliver modest but resilient growth in 2026, with Seoul and Tokyo emerging as standout performers as structural supply shortages continue to underpin pricing across select global cities.

Seoul is expected to lead growth in 2026, with prime apartment prices forecast to rise between 6% and 7.9% following a 14.3% increase in 2025. Deep-rooted structural constraints, including scarce land availability, slow development pipelines and concentrated demand within core districts, continue to place upward pressure on pricing. While tighter regulations and more restrictive financing conditions have moderated transaction volumes, pricing momentum remains resilient.

Tokyo also stands out after recording capital value growth of 30% in 2025, driven by acute supply scarcity and enduring domestic and international investor appeal. Competition for land — particularly from office developers — continues to restrict residential development, even as widening gaps between new apartment prices and construction costs raise longer-term sustainability considerations.

In Singapore, prime residential capital values are forecast to grow between 2% and 3.9% in 2026, marking a recovery following negative growth in 2025. The outlook aligns with a broader rest-of-world trend, where constrained prime supply, improving buyer confidence and selective demand are expected to support price stability and gradual growth across key Asia-Pacific and European markets.

Alan Cheong, Executive Director, Research & Consultancy, SAVILLS Singapore says, “Singapore’s luxury residential market is slowly regaining momentum as more locals as well as permanent residents realize that value offerings are in the air after the price correction in 2025.”

Global prime residential property markets demonstrated notable resilience in 2025, delivering capital value growth despite a backdrop of economic volatility, geopolitical tensions and shifting policy environments. Prime capital values across the 30 cities in the index rose by an average of 1.8% last year, with second-half capital values outperforming rents for the first time since 2021 — signalling a modest shift in sentiment as expectations of interest rate cuts firmed.

China’s headwinds continue, with prices forecast to dip by -2% to -3.9% in 2026 across the Chinese cities in the index due to weak demand and demographic challenges. While prime new-build properties may experience stability, the broader secondary market remains firmly in decline. With 22 consecutive months of year‑on‑year declines recorded across all surveyed cities, sentiment remains fragile, and a meaningful recovery in 2026 appears unlikely.

Hong Kong’s residential prices are showing signs of stabilisation with the strengthening of demand from new Mainland Chinese buyers who are acquiring residences in Hong Kong’s prime enclaves. While capital value growth remained negative for full-year 2025, they increased by 0.3% in the second half of the year and growth of between 2% and 3.9% is anticipated for this year.

By contrast, the outlook across much of Europe and the United States is more moderate, with average price growth forecast between just over 0% and 1.9%. Although easing mortgage rates are expected to support activity in the US, elevated pricing and cautious sentiment will continue to influence markets such as Milan, while cities including Rome, Athens and Paris are positioned for gradual recovery supported by improving buyer confidence and limited supply.

Dubai recorded capital value growth of 3.6% in H2 2025 and 11.2% for the full year. 2026 is set to see more moderate growth of 1.9%. Constrained prime supply has sustained prices, even as growth begins to normalise from the highs of the early 2020s. However, there is a significant pipeline of mainstream stock which could contribute to a two-tier market.

Kelcie Sellers, Associate Director, SAVILLS World Research says:

“Chronic undersupply, cross-border capital flows and sustained demand for global city environments, especially those with strong lifestyle and fiscal pulls, will continue to drive growth in prime residential markets around world.”