Manila And Tokyo Lead Global Rally Prime Residential Market 1Q2024 Knight Frank
According to the latest Prime Global Cities Index from Knight Frank, Manila and Tokyo were among the top performing real estate markets in the first quarter of 2024. This index tracks the movement of prime residential prices in 44 cities around the world and saw an average annual growth rate of 4.1% in the first three months of the year.
Liam Bailey, global head of research at Knight Frank, says that this growth is not indicative of a return to boom conditions. Rather, it is a result of healthy demand against low supply levels. He suggests that when interest rates start to rise, it will encourage more sellers to enter the market and bring about a welcome return to liquidity in key global markets.
Manila took the top spot on the index with a 26.2% year-on-year increase in residential property prices, followed by Tokyo with a 12.5% year-on-year increase. Singapore was ranked 16th on the global chart, with a 5% year-on-year increase in prime residential prices in the first quarter.
Bailey attributes Manila’s strong growth to two main factors: a robust economy that has boosted consumer confidence and spending power, and significant investments in infrastructure in and around the city. Meanwhile, Tokyo saw strong growth in housing prices due to favorable mortgage terms offered by Japanese banks and a weaker yen, which has attracted foreign investment in the city’s real estate market.
Other cities that made it to the top ten positions include Mumbai, Perth, Delhi, Seoul, Christchurch, Dubai, Los Angeles, and Madrid. Knight Frank’s head of research for Asia-Pacific, Christine Li, highlighted the resilience of China’s prime residential market amid the challenging conditions facing the overall property market. The prime residential prices in tier one cities in China saw an average increase of 2.8% year-on-year in the first quarter, in contrast to the mass residential segment. Li believes that with the easing of home buying curbs and supportive policies from the Chinese government, the prime segment will continue to remain stable for the rest of 2024.
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In conclusion, Knight Frank’s Prime Global Cities Index shows the strong performance of Manila and Tokyo’s prime residential markets in the first quarter of 2024. With supportive policies and strong demand, these cities are likely to continue to see growth in their real estate markets.