He noted a significant improvement in market conditions compared to a year ago, with inflation largely in check, and anticipates an inevitable reduction in interest rates. 

Khoo highlighted the robustness of the labour market, the scarcity of forced sellers, and the mitigated price fluctuations due to constrained housebuilding, as well as the bolstering effect of pandemic savings on certain advanced economies.

In the latest edition of The Wealth Report, Knight Frank's flagship publication, prime residential prices in 2023 surpassed expectations. 

Out of the 100 markets monitored in Knight Frank's Prime International Residential Index (PIRI), 80 showed flat or positive annual price growth, indicating the resilience of luxury residential markets despite successive interest rate hikes.

Khoo emphasised the significant role played by the Asia-Pacific region, contributing to an overall growth rate of 3.8 per cent and reaffirming Malaysia's potential as a key player in the luxury real estate sector.

The Knight Frank report showed that luxury prices climbed 3.1 per cent on average in 2023, showcasing a solid gain overall, said Dominic Heaton-Watson, Associate Director of International Residential at Knight Frank Property Hub Malaysia.

The Asia-Pacific region (3.8 per cent) outperformed the Americas (3.6 per cent), with Europe, the Middle East, and Africa trailing at 2.6 per cent. Manila led the global rankings with a 26.3 per cent increase, followed by Dubai at 15.9 per cent.

Heaton-Watson noteed that sun locations continue to outperform city and ski markets, with a 4.7 per cent average increase. 

Ski resorts followed closely at 3.3 per cent, while prime prices in city markets saw a 2.7 per cent average rise. 

He pointed out the significant variation in prime prices across luxury residential markets, with prime prices in Dubai notably higher than pre-pandemic levels but still lower compared to more established markets like Hong Kong.

Looking ahead to 2024, Heaton-Watson suggested that political events, with nearly 70 countries going to the polls, may have significant implications for wealth flows and property markets. 

He anticipated politics overshadowing economics as a potential downside risk for real estate in the coming year.

Kevin Coppel, managing director at Knight Frank Asia-Pacific said that the Asia-Pacific region is demonstrating an underlying optimism heading into 2024.

However, shifting rules and regulations in various markets may potentially impact buyers' preferences.

'For example, Hong Kong SAR is reducing ad valorem and buyer's stamp duty rates for non-permanent residents from 30 per cent to 15 per cent, while the Chinese mainland is implementing new housing policies in first-tier cities.

"New Zealand has reinstated mortgage interest deductions for rental income and reduced the holding period to two years for capital gains tax exemptions. By contrast, Australia has tripled fees for foreigners buying existing houses and doubled taxes for vacant dwellings owned by non-residents to curb foreign speculation and address housing affordability concerns," he said.