Manila topped the chart when it recorded a 26.2% y-o-y increase in residential property prices in 1Q2024.
According to Knight Frank’s Prime Global Cities Index, prime residential prices in Manila and Tokyo were among the top performing real estate markets in 1Q2024, based on average annual price growth.
The valuation-based index tracks the movement of prime residential prices across 44 global cities. The first three months of this year saw an average annual growth rate of 4.1% across these 44 property markets.
“Rather than heralding a return to boom conditions, the index indicates that upwards price pressures are stemming from relatively healthy demand, set against continued low supply volumes. The pivot in rates – when it comes – will encourage more vendors into the market, leading to a welcome return to liquidity in key global markets,” says Liam Bailey, global head of research at Knight Frank.
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Manila topped the chart when it recorded a 26.2% y-o-y increase in residential property prices in 1Q2024 compared to the same period a year ago. Tokyo took second place with a 12.5% y-o-y increase in prime residential prices.
Singapore’s prime residential market was 16th on Knight Frank’s global chart, with the city-state recording a 5% y-o-y increase in prime residential prices last quarter.
“Manila’s strong growth can be attributed to two particular factors: strong economic performance, which has boosted consumer confidence and spending power, and significant infrastructure investment in and around the city, which has also boosted demand,” says Bailey.
Meanwhile, Tokyo’s prime residential market saw robust growth in housing prices at the start of this year, which is attributed to exceptionally favourable mortgage terms offered by Japanese banks and a weaker yen, which has increased foreign investment in Tokyo’s real estate, says Bailey.
Other cities that made up the top ten positions include Mumbai, Perth, Delhi, Seoul, Christchurch, Dubai, Los Angeles, and Madrid.
Table: Knight Frank Research
Commenting on the performance of the Chinese residential real estate market, Christine Li, head of research at Knight Frank Asia-Pacific, noted: "Even among Chinese Mainland’s beleaguered property markets, prime residential prices in its tiered-one cities have largely remained resilient, which rose by an average of 2.8% y-o-y in 1Q2024. This is in stark contrast to the mass residential segment, demonstrating the resilience of the prime segment as an asset class which are shielded by less price sensitive buyers and lower supply.”
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She says that with home buying curbs in China easing amid lowered downpayment and mortgage rates, policies gradually rolled out by the Chinese government to stabilise its wider property markets are likely to creep into the prime segment and remain supportive of price levels for the rest of 2024.