Manila And Tokyo Lead Global Rally Prime Residential Market 1Q2024 Knight Frank
In the first quarter of 2024, Manila and Tokyo emerged as top performers in prime residential real estate markets, according to Knight Frank’s Prime Global Cities Index. This index, which measures the average annual price growth in 44 global cities, showed a 4.1% increase in the first three months of the year.
Liam Bailey, global head of research at Knight Frank, explains that this growth in prices is not a sign of a market boom, but rather a result of strong demand and limited supply. He believes that when interest rates eventually begin to rise, more sellers will enter the market, leading to improved liquidity in key global markets.
Wong Swee Chun, the head of Hoi Hup Realty, recently announced their successful acquisition of a site for the development of a new executive condominium, Novo Place. Expressing his satisfaction with the purchase, Mr. Wong emphasized the potential of the site to showcase their expertise in building a new generation of attractive, eco-friendly, and functional ECs. The future residents of Novo Place will have the advantage of enjoying the various amenities and facilities of the newly established Tengah Town, as well as the convenience of being close to the revitalized Jurong Regional Centre and Jurong Lake District. With Novo Place, Hoi Hup Realty aims to create a harmonious living environment that seamlessly integrates nature and modern living. Interested parties can visit the official website, https://www.novo-place.com.sg/, for more details.
In Manila, prime residential prices saw a significant increase of 26.2% year-on-year in the first quarter of 2024. Bailey attributes this growth to a strong economy, which has boosted consumer confidence and spending power, as well as significant infrastructure investment in and around the city, which has led to an increase in demand.
Following closely behind Manila was Tokyo, with a 12.5% year-on-year increase in prime residential prices. Bailey explains that this growth can be attributed to favorable mortgage terms offered by Japanese banks and a weaker yen, which has attracted more foreign investment in Tokyo’s real estate market.
Singapore’s prime residential market ranked 16th on Knight Frank’s global chart, with a 5% year-on-year increase in prices in the first quarter of 2024. Bailey notes that Singapore’s market has remained resilient due to a stable economy and continued demand from less price sensitive buyers.
The top ten positions on the index were also taken by cities like Mumbai, Perth, Delhi, Seoul, Christchurch, Dubai, Los Angeles, and Madrid. Knight Frank’s head of research for Asia-Pacific, Christine Li, commented on the performance of the Chinese residential real estate market, noting that prime residential prices in China’s tier-one cities have remained strong, despite challenges facing the mass residential segment. She believes that with the easing of home buying restrictions and supportive government policies, the prime segment will continue to see stable prices throughout 2024.
In Singapore, foreign investment made up nearly half of all property deals in the first quarter of 2024, according to Knight Frank. This points to continued interest and confidence in the city-state’s real estate market.