Manila Tops Global Index in Prime Residential Price Increase
21 April 2024
Manila has topped a global listing again. But whether or not it should be cause for jubilation depends on who's looking.
The capital has emerged at the top of the Knight Frank Prime Global Cities Index on prime residential prices, reflecting strong growth of the real property market driven by strong demand.
The listing, which covers 45 real property markets from around the world, showed that Manila logged a growth rate of 26.3 percent year-on-year by the end of 2023. This price growth rate eclipsed other powerhouse cities such as Dubai, a far second at 15.1%, and Mumbai, which recorded a 10% increase.
Manila’s prime residential price growth is an improvement from its performance in the third quarter of 2023, where it logged a 21.2% increase. This development had also landed Manila at the top spot of the global index in the same quarter.
Of the 45 global markets covered, Manila was the one that recorded a growth rate above 20%. Other cities in the top 10 are Shanghai, with a growth of 8.6%, Los Angeles at 8.2%, Vancouver at 7.2 percent, Christchurch at 6.8%, Miami at 6.6%, Madrid at 6.4% and Seoul at 6.2 percent.
The average annual price increase was at 3.7% across the 45 markets on the list, the "strongest growth recorded since Q3 2022," the report said.
"The biggest impact of the rate tightening cycle in the past 12-months has been on sales volumes, which have fallen in most markets by around 10% to 20%. While prices did initially fall as rates rose in 2022, as supply has been squeezed prices have ticked up. Rate cuts in the second half of 2024 will add further impetus to the market," said Liam Bailey, Knight Frank’s global head of research.
What does it all mean?
Manila’s standing is a reflection of the country’s strong economic performance, which has spurred housing demand in the capital. The report said the growth of residential prices in Manila was on the back of "rising housing demand, with agents reporting a surge in requirements from expatriates returning to manage local businesses."
This means overseas Filipino workers were funnelling money they had earned overseas to buy property back home as they begin new businesses locally.
But for locals in the market for a new home, this would mean higher prices of houses and condominium units. If you're on the lookout for new digs, you have to make sure you have enough saved up.
The Prime Global Cities Index (PGCI) is a "valuation-based index" which looks at movements in prime residential prices across 45 cities using research data.
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