The Philippines capital of Manila is the fastest-growing high-end real estate market in the world in Q1 2024, a Knight Frank analysis showed. The densely populated bayside city saw the largest annual price increase at 26.2%, followed by Japan’s Tokyo at 12.5% and India’s Mumbai at 11.5% and Delhi at 10.5%. Perth, at 11.1%, confirms the resilience of key Australian markets, according to the property consultant’s Prime Global Cities Index, which tracks luxury residential prices across 44 cities worldwide.
Manila’s strong growth can be attributed to two particular factors: strong economic performance, which has boosted consumer confidence and spending power, as well as significant infrastructure investment in and around the city, which has also boosted demand. Frank Knight analysts said the city’s momentum is continuing, as prices have surged by 4.6% in the past three months. Manila is the chief port and the economic, political, and cultural centre of the Philippines. In addition to its diversified industries, including shipbuilding and food processing, it is the seat of several universities.
House price growth averages at 4.1% across all the global prime cities in Q1 2024, marking the strongest growth rate since Q3 2022-a period when nearly 70% of central banks were tightening monetary policy. On a quarterly basis, price growth also strengthened to 1.1%, up from 0.3% in Q4 2023.
While the current annual growth of 4.1% marks a notable recovery from zero growth seen at the end of 2022, it remains below the long-term average annual growth rate of 5.4%, according to experts.
“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” Liam Bailey, Knight Frank’s global head of research said.
Looking across the 44 cities that make up the valuation-based index, 78% are experiencing annual price growth, while 19% are seeing declines. Other cities that made up the top ten positions include South Korea’s Seoul, New Zealand’s Christchurch, UAE’s Dubai, Los Angeles in the US, and Spain’s Madrid. The index tracks nominal prices in local currency.
