Tokyo has emerged as the leader in the Savills World Cities Prime Residential Index, recording an impressive 8.8% growth in capital values during the first half of 2025. This growth is attributed to a persistent shortage of new housing stock and robust demand from both domestic and international buyers. The city’s capital values are expected to rise further by 6% to 7.9% in the latter half of the year.
Singapore, whilst only seeing a modest 0.2% growth in capital values, stands out for its high transaction costs. The city imposes a 60% Additional Buyer’s Stamp Duty on international buyers, making it the most expensive globally in terms of entry costs. Alan Cheong of Savills Singapore noted that local demand, driven by higher public flat resale prices, is expected to sustain the private residential market.
Berlin and Dubai also showed strong performances, with capital value increases of 7.2% and 5.7%, respectively. These cities, along with Seoul, which posted a 5.1% growth, benefited from limited development pipelines and strong buyer sentiment. Meanwhile, cities known for their lifestyle appeal, such as Amsterdam, Cape Town, Lisbon, and Sydney, experienced positive growth driven by sustained international interest.
In contrast, Hong Kong faced challenges, with a 3.5% decline in capital values due to high pricing and policy uncertainty. Despite this, it remains the most expensive city in the index, with average prime prices of $3,720 (£2,860) per square foot.
Looking ahead, Savills forecasts an average capital value growth of 1.5% across the index in the second half of 2025, with Cape Town, Seoul, and Tokyo leading the way.
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