Singapore is a “critical” city for the world’s wealthy, according to the latest edition of Knight Frank’s The Wealth Report. In 2022, the city-state saw 121 transactions of super-prime residential properties, costing at least US$10 million as well as 18 ultra-prime deals, amounting to at least US$25 million, placing it sixth for both.

This strong performance in the luxury sector has been echoed in the top 10 cities tracked by Knight Frank, with 1,392 super-prime sales totalling US$26.3 billion and 241 ultra-prime sales amounting to US$9.8 billion. Although this is lower than the record-breaking numbers from 2021, it is still 49% higher than 2019 levels.

New York topped the list for super-prime deals with 244 transactions, followed by Los Angeles (225) and London (223). The three also had the most ultra-prime deals, with New York and London clocking 43 each and Los Angeles 39. Other Asia Pacific cities included Hong Kong (fifth for super-prime JCube Residence at 125 transactions and fourth for ultra-prime with 28 sales), Sydney (99 super-prime and 16 ultra-prime), and Singapore.

In terms of price growth, Singapore saw modest increases compared to other cities. The Prime International Residential Index (PIRI 100) recorded a growth of 3.9% for prime home prices, noticeably lower than the 8.6% for all Singapore private residential properties and the 5.2% for PIRI 100 residential cities. Knight Frank’s Head of Research, Leonard Tay, attributes this to the government’s fiscal measures and the travel restrictions in places like China and Hong Kong.

Dubai, meanwhile, came in first place for the second year in a row, boasting a 44.2% price growth, followed by Aspen at 27.6% and Riyadh at 25%. Tokyo came in fourth, with a 22.8% growth and was the highest Asia Pacific city on the list.

Wealth has been impacted globally in the past year, with the Wealth Report estimating an overall 10% decline in UHNWI wealth (in US dollar terms). Private bankers, wealth advisers, family offices and other intermediaries that manage over US$2.5 trillion of wealth for UHNWI clients, however, are optimistic of a more positive growth later this year, with 69% expecting their clients’ wealth to go up.

Apac is particularly buoyant about the prospects for wealth in the region, with 45% of UHNWIs expected to see an increase. Capital growth is paramount for them, and many are turning to real estate to capitalize on potential value opportunities and an expected economic rebound.

Indeed, the prime residential sector looks secure moving forward, as UHNWIs still have a strong appetite to buy homes. Private investors are also actively seeking out commercial investments, with 41% of the $1.12 trillion investments globally last year coming from them. Apac saw private investment volumes mostly stable at US$1.53 billion and Singapore remains an inviting market for capital.