Manila has clinched the top spot on Knight Frank’s Prime International Residential Index 2019.
With luxury property prices rising 11.1 percent in the year to December, the Philippines’ populous capital outpaced price movements in 99 other residential property markets tracked by the index, now in its 12th year.
Manila’s ascent up the survey is attributed to a lack of supply and a thriving economy, emboldening expatriates to “grab their own slice of real estate back home,” wrote Kate Everett-Allen, head of international residential research for Knight Frank.
The Philippines' annual GDP growth exceeded 6 percent in 2018.
“However, its performance needs to be put into perspective. In the past 12 years that we have been compiling the index, the top-performing market has yet to record annual growth below 21 percent. This is a breakaway from the norm,” she said.
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Edinburgh ranks number two, with prime home prices in the Scottish capital posting an annual growth of 10.6 percent. Singapore, the only other Asian city in the top 10, saw luxury home prices appreciate by 9.1 percent, outpacing growth in Boston (8.6 percent), Madrid (8.1 percent) and San Francisco (7.8 percent).
Manila’s growth also puts it ahead of Berlin (10.5 percent), Munich (10 percent), Buenos Aires (10 percent), and Mexico City (9.5 percent).
“Burgeoning rental demand, limited supply and, in most cases, buoyant local economies have seen annual price growth in Edinburgh, Berlin and Munich rise above 10 percent,” said Everett-Allen.
Overall, the value of the 100 markets tracked by PIRI increased by just 1.3 percent on average last year, making it the index’s lowest annual growth since 2012. Only five cities registered double-digit annual growth in this year’s index, compared with 11 cities previously.
Top 10, Knight Frank’s 12th PIRI 100
- Buenos Aires
- Mexico City
- San Francisco