This is partly due to their appeal as a home away from home, says Stuart Reading, managing director of Group Property Development at Banyan Group. “With the high cost of living, pollution and overcrowding in urban areas, more people are choosing to move to non-urban areas (or at least have a second home in these locations), where homes are more spacious (including external areas) to be able to access and enjoy outdoor activities.”

Among other emerging markets, including Manila, Mumbai and Delhi, the Thai resort island has witnessed a big surge. “Phuket saw over ten million visitors in 2023, exceeding more established destinations such as Bali and Mallorca,” says Reading.

Thailand’s overall lower cost of living, along with Phuket’s connectivity—with direct flights from over 70 global cities—and lifestyle amenities and cultural activities that complement its abundant natural settings make it an attractive prospect, he adds.

On the other hand, Manila’s prime luxury residential properties have seen a significant appreciation in their market value, driven by high pre-selling prices in under-construction projects, according to Knight Frank’s Prime Global Cities Index.

In Singapore, luxury apartment prices dropped by 5.5 per cent on average in the first half of 2024, but Li suggests that it is a temporary lull. Despite being caught in the midst of geopolitical tensions, cooling measures and shifting investment preferences, among others, “safe-haven markets such as Singapore, Australia and Japan continue to lead the way, supported by government visa incentives that attract foreign talents for living, working, and studying,” she says.

Australia’s stable economy and political system, and world-class health and education systems, contribute to its popularity. High construction costs and low supply may have affected the broader real estate market, but have also created a demand in the luxury sector—which is “shielded by cash buyers that are less dependent on financing and lower supply”, adds Li.

“While we’ve seen the flavour of people’s demands change since Covid-19, the reality is prices have also skyrocketed since 2022, so people’s equity, and therefore wealth, has increased, allowing them to now purchase a luxury property, which they may not have been able to before. The demand for luxury property wasn’t as strong prior to the pandemic,” says Alex Adams, head of Sales and Marketing at Australian real estate developer Aqualand.

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Increased life expectancy and declining fertility rates in Australia are also contributing factors, says Adams. “This shift means older adults are not only increasing in number but also make up a larger proportion of the total population, impacting the luxury market significantly, as they generally have more financial resources,” he says.

Knight Frank’s Wealth Report 2024 also indicates a propelled foreign interest in Japan’s real estate market. “US$1 million buys 64 square metres of prime property in Tokyo—double of what buyers can get in Singapore, and nearly triple that of Hong Kong,” says Li. “An estimated 20 per cent of high-priced condominiums transacted in central Tokyo are purchased by foreign buyers, of which a significant proportion are from the region.”

The high-end segment is the most active in its resort town, Niseko, says Bjorn Fjelddahl, director of Odin Property. “This is buoyed by several factors such as the continued pull of Japan as a travel destination, the low Japanese yen rate making foreign investments into the country attractive, and the ever-growing reputation of Niseko as a premier ski resort destination,” he explains.

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As has always been the case after a globally altering event, the residential property market has seen the emergence of more aware buyers and mindful players. “Today’s luxury property buyers are more discerning and environmentally conscious. Buyers are increasingly prioritising eco-friendly features and seeking properties that align with their values, including sustainability and social responsibility,” says Tamthai.

Square footage, which allows flexibility within the space to accommodate these lifestyle changes, has become a hallmark of luxury real estate today. This speaks aloud to buyers even in land-scarce Singapore. In the first half of 2024, Singapore saw 13 Good Class Bungalow (GCB) transactions, amounting to $457 million.

Although a 20 per cent drop from sales in the first half of the previous year, they were double the $202 million transacted for the sale of nine GCBs in the second half of 2023.

The shift is more visible in a place like Japan, where the urban landscape has been more skewed towards apartments and condominiums. “Many built properties remain unsold except for locations which are truly ski-in ski-out. Large estate-type homes and villas are a very busy segment,” says Fjelddahl. “Today, it is not uncommon to see 600 to 900 square metre homes being designed, built and sold for over US$10 million.”

Fjelddahl sees this as a continuing trend. “We will see even larger homes with even more luxurious amenities and services coming to market, and I predict Niseko will ultimately boast properties in the US$30 to 60 million and above bracket just like the other top ski resorts around the world—Aspen, Courchevel, Gstaad, Verbier.”

The draw of apartment living is, however, strong in Australian cities, especially Sydney, catering towards the local downsizer market—90 per cent of buyers into Aura, Aqualand’s residential project in the city, are owner-occupiers, says Adams.

The large sizes of these apartments, along with the strategic location of the precinct next to Victoria Cross Metro Station and in-house retail and hospitality amenities, have been the main attraction for these buyers. This has allowed Aura record-high sales of AU$70 million in August 2024 over and above AU$100 million achieved in February 2024.

The need for space, combined with the desire for exclusivity in the form of branded residences, is a trend that looks set to continue for a few years, explains Reading. “Owning a branded residence is both a symbol of prestige and building quality and amenities, along with professional management providing high-quality services.”

Sure enough, Phuket’s ultra-luxe segment has witnessed record prices, particularly in the branded residences sector catered by the big players in the market. The Banyan Group’s luxury residential properties in Phuket, which include townhouses and single- and double-storied villas with a view, balance space, luxury and lifestyle with personal and physical well-being, and environmental consciousness. Adding to this are owner benefits such as Banyan Group’s “Sanctuary Club”, which features worldwide discounts and privileges.

Montara’s Tri Vananda in Phuket clubs these with a sustainable luxury-living approach and materials and design choices that aim to accelerate its carbon-neutral status. These include extensive green spaces that tie in with the group’s design ethos of building up only 15 per cent of its land area. “This promotes privacy and a connection to nature while offering residents access to premium wellness services, thereby aligning with contemporary trends in luxury living,” explains Pattamasaevi.

Branded residences also maximise the value of their investment for UHNWIs, adds Tamthai, as they seek not only capital gains from the property appreciation. “Rental income with a rental programme, managed by experienced hotel operators,” he explains. “This allows owners to generate income from their properties while minimising the hassle of property management.”

Li reports that as per the Knight Frank Global Branded Residences Report, up to 45 per cent of buyers in Australasia are willing to pay a premium for branded residences, highlighting the growing trend in this segment.

As buyers continue to prioritise certain features as well as investment criteria, the luxury real estate trends that were partly accelerated by the pandemic are here to stay, notes Pattamasaevi. “Looking ahead to 2025, we anticipate continued interest in properties that prioritise wellness and sustainability.

“Buyers are increasingly seeking homes that offer not just luxury, but also holistic well-being and environmentally conscious design. This aligns with the overall trend of health-conscious living and investment in sustainable real estate,” he concludes.

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