Manila’s luxury residences fastest growing prices globally – report

In a press conference in Makati City on Friday, the SKF said the price growth of Manila’s prime residences was recorded at 21.2 percent over the past 12 months and at 19 percent in the last six months, based on the Knight Frank’s Prime Global Cities Index. (File Photo: JC Gellidon/Unsplash)

MANILA – The Philippine capital has logged the fastest growing price in luxury residential market across the world, real estate consultancy firm Santos Knight Frank (SKF) said.

In a press conference in Makati City on Friday, the SKF said the price growth of Manila’s prime residences was recorded at 21.2 percent over the past 12 months and at 19 percent in the last six months, based on the Knight Frank’s Prime Global Cities Index.

Upward change in prices in Manila’s luxury residences surpassed Dubai, with a 12-month growth of 15.9 percent; Shanghai at 10.4 percent; Mumbai at 6.5 percent; Madrid at 5.5 percent; Stockholm at 4.7 percent; Seoul at 4.5 percent; Sydney at 4.2 percent; and Nairobi and Delhi, both at 4.1 percent.

For the six-month growth, Seoul followed Manila, with a growth of 15.6 percent, then Dubai at 12.3 percent.

“The luxury residential space is one of several sectors where we’re seeing encouraging market activity. Pent-up demand for prime properties, the return of the residential leasing market, and the tight supply of developments have contributed to significant price appreciation, especially in central business districts,” SKF chairman and chief executive officer Rick Santos said.

The real estate consultancy firm has also seen that the momentum of the Philippine property market has continued after the coronavirus 2019 (Covid-19) pandemic.

In terms of office occupancy rate, Metro Manila logged an average occupancy rate of 80 percent in the past three quarters, above the all-time low occupancy rate of 75 percent.

The lowest vacancy rate is in the Fort Bonifacio area at 11 percent, followed by Makati at 20 percent and Quezon City at 22 percent during the third quarter of 2023.

Fort Bonifacio and Makati continue to lead the lease rate in the National Capital Region at PHP1,214.32 and PHP1,163.28 per square meter per month.

“The office market has continued its road to recovery post-Covid. The increased demand from conventional office tenants and flexible office operators has significantly contributed to the upswing in commercial leasing requirements. We are expecting this momentum to continue in 2024,” Santos said.

“Strong investor confidence in the Philippines during the current Ferdinand R. Marcos Jr. administration has buoyed the real estate market despite rising interest rates,” the SKF chief added.