The center of gravity of the global luxury property market is shifting. The movement is away from places like London to East Asia and other parts of the globe.

Driving this, primarily, is the political situation in the UK. The new government is driving tens of thousands of people out of the country, including some of its wealthiest residents, putting the brakes on property price increases.

However, that’s not the only factor at play. Asia is also developing at a rapid clip and proving to the world it can offer a high-quality environment in which to live.

“This shift away from traditional haunts, like London, is partly political, but there are other factors at play,” explains Mortgage Quote, an online service that helps property buyers find loans. “People are looking to move beyond the West and set up bases elsewhere in the world, partly for the draw of those locations, but also for political security. Given the events of 2024, it’s clear that things can change on a dime.”

London’s property market is struggling primarily because of higher taxes and costs. Owning a home in the UK capital is becoming more expensive while the expected appreciation is going down.

This toxic combination is making purchasing a property less attractive. Average buying prices are stalling, and the number of people capable of paying rent on these units for a reasonable return is shrinking. Many investors are simply throwing their hands in the air and looking elsewhere.

The aftershocks of Brexit are also playing a role. Investors don’t know when policies are going to change again and appear unsure whether taking the plunge and risking a London property purchase is worth it. The city could likely recover its glory quickly, but it requires robust policy decisions and commitment.

This caution about investing in the UK seems to come from a general sense among the wealthy that the economy would be better if the country was part of the European Union. Even if the reality is different, this intellectual framework means that many are simply unwilling to take the plunge and would much rather place their bets elsewhere.

“Investors just aren’t that interested in London anymore. It feels like a saturated market,” Mortgage Quote explains. “It’s slow and the opportunities for returns seem to be disappearing fast, especially compared to the period between 2010 and 2020 when many wealthy individuals say bumper returns investing in the city.”

America, by contrast, is booming. Property prices in many of the country’s growing cities are ratcheting up rapidly, thanks to the money being made in tech, finance, and industry. Places like Dallas, Florida, and San Francisco are excellent examples.

“Luxury properties are still being snapped up in the U.S.,” explains Mortgage Quote. “It’s just that the locations are changing. People aren’t looking at California as much as in the past, with more applying for a jumbo loan in places like Miami Beach or Charleston. It’s these up-and-coming locations with the rule of law that appeal most to those looking for a good life.”

A similar dynamic is underway in many Asian hubs. A combination of wealth and security is driving demand for luxury properties in these regions.

One factor at play is the booming economies and wealth growth. Places like Singapore and Hong Kong are attracting talent from across the globe–people looking for opportunities they can’t find in their home countries. This shift means that more individuals than ever before are gaining access to the high life, driving demand for properties in the most prestigious parts of town.

Ultra-rich buyers are also being generated locally. Success in industry and innovation means that many individuals are looking for opportunities to improve their living conditions, whether that means demanding suburban mansions or penthouses overlooking major cities in the region. Even in places like Cebu in the Philippines or Jakarta in Indonesia, this is happening.

“The American market is exciting, but Asia is the place to watch for luxury property innovation,” says Mortgage Quote. “Some countries, like Singapore, Japan, South Korea, and Hong Kong, are actually ahead of the West technologically, making them even more exciting for people wanting to experience the very best in what luxury property has to offer. High-end homes often have integrated amenities that massively improve quality of life and allow occupants to live the way they want, without the usual limitations.”

These modern improvements often appeal to younger investors and the upcoming generation of millennials who grew up surrounded by new technologies. It’s a sea-change that’s altering how many investor classes see the world, driving interest in the Far East, responsible for things like home assistants and toilets that monitor health.

However, cold hard numbers are also playing a role in the development of the Asian luxury property market. Because of booming populations, crowded cities, and low prices, the appreciation potential is also there, just as it was in the West in the 1990s and 2000s. Luxury property investors expect values to grow in places like Kuala Lumpur and Hanoi.

“The case for taking out large mortgages to buy these sorts of properties is growing every year,” says Mortgage Quote. “It’s astonishing what’s happening in these locations. Even as birth rates fall, the force of population dynamics means that property values are likely to continue rising for many decades, perhaps even into the 2070s if current projections in many of these regions are correct.”

Regulations are also making property investment more attractive in the Far East compared to legacy cities, like London. Many countries have investor-friendly programs running, encouraging them to bring their money into the country to prop up local currencies. Singapore and similar locations want nothing more than wealthy Westerners to provide foreign exchange to their central banks in exchange for buying properties in premium locations that were otherwise relatively inexpensive to build.

“Whether this trend will continue for much longer remains to be seen. America’s economy is booming and many wealthy Asians are flocking to its shores to take advantage of opportunities under the new administration,” Mortgage Quote explains.

For more on the latest in luxury property reads, click here.