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Cooling markets
Price growth is slowing but it’s not a uniform picture, as our analysis reveals
Some prime markets are feeling the effects of the changing macroeconomic landscape more than others. Fifteen saw prime prices decline in 2022, up from seven in 2021. Almost half of those falling in 2022 were in Asia-Pacific.
Markets registering the strongest price growth during the pandemic are among the biggest fallers: Wellington (-24%); Auckland (-19%); Stockholm (-8%); Vancouver (-7%); and Seoul (-5%).
“Markets registering the strongest price growth during the pandemic are amongst the biggest fallers”
Cities are feeling the brunt more than resorts, but even here markets are deflating, not collapsing. This isn’t 2008.
Nonetheless, the transition from a sellers’ to a buyers’ market is well under way, though limited prime stock in several major cities, exacerbated by the pandemic, is putting a floor under luxury prices.
With several economies potentially past their inflation peak – and hence nearing the end of their monetary tightening phase –all eyes will turn to the resilience of labour markets. As yet, forced sellers have been notable by their absence.
