Manila has secured its position as the world’s fastest-growing luxury residential market, as per the findings of real estate consultancy firm Santos Knight Frank. Over the past 12 months, prime residences in Manila experienced an impressive 21.2% surge in prices, with a remarkable 19% growth in the last six months alone, according to Knight Frank’s Prime Global Cities Index. This outstanding performance surpasses growth rates observed in other major cities like Dubai (15.9%), Shanghai (10.4%), and Mumbai (6.5%), solidifying Manila as an attractive destination for real estate investment.
The robust growth of Manila’s luxury property market is attributed to factors such as pent-up demand for prime properties, a resurgence in the residential leasing market, and a limited supply of developments, as noted by SKF chairman and CEO Rick Santos. Seoul closely follows Manila with a 15.6% growth in the last six months, highlighting the resilience and strength of the region’s real estate sector.
Despite the challenges posed by the COVID-19 pandemic, the Philippine property market has sustained its momentum, boasting an average office occupancy rate of 80% in the past three quarters, surpassing the previous all-time low of 75%. Notable areas like Fort Bonifacio, Makati, and Quezon City exhibit low vacancy rates of 11%, 20%, and 22%, respectively, during the third quarter of 2023. Additionally, Makati and Fort Bonifacio lead in lease rates within the National Capital Region.
The recovery of the office market post pandemic is evident, fueled by increased demand from both conventional office tenants and flexible office operators. Santos anticipates this positive momentum to persist into 2024, crediting the real estate market’s resilience to strong investor confidence in the Philippines, particularly during President Bongbong Marcos’ term, despite challenges posed by rising interest rates.
Manila’s luxury real estate market has defied global challenges, emerging as the fastest-growing sector with a remarkable 21.2% surge in the past year. This robust growth, outpacing major cities worldwide, solidifies Manila’s status as a prime destination for real estate investment. Despite the ongoing pandemic, the resilience of the Philippine property market, driven by factors such as strong investor confidence and limited supply, paints a promising picture for continued success well into 2024.
