Manila Is Named the World's Top Luxury Home Market For 2018
- According to research and consultancy firm Knight Frank, Manila's luxury property market performed best in the world.
- In another report, Alabang was featured as one of the world's most promising neighborhoods for 2019.
If you’re looking for a business opportunity in a thriving industry, the latest market report by Knight Frank points to luxury homes as a great investment. In 2018, Manila’s luxury home market saw the most growth in the world, with an 11 percent increase in prices. The report compiled a list of the world’s hottest 100 cities, using each market’s price increase as its main unit of measurement. Manila’s increase is speculated to spring from a six percent growth in the annual GDP and the lack of supply.
While property developers might rejoice, the annual Knight Frank Prime International Residential Index (PIRI 100) clarifies that Manila’s index-topping number is quite low compared to the top performers in the past 12 years, which would usually average a number not lower than 21 percent. Manila is closely followed by Edinburgh, Berlin, Munich, Buenos Aires, and Mexico. American cities Boston, San Francisco, Toronto, and Seattle also make the top 20 and have managed to overtake European cities such as Lisbon, Paris, and Frankfurt.
The entry was the only Asian city on the top ten, apart from Singapore. The report also stated that global hubs that one might expect to perform well in the category, such as New York and London, did not meet expectations.
Looking back at a first quarter market update, the same consultancy reported that Manila owed its economic win to the rise of the ultra-wealthy, or the Filipino Ultra High Net Worth Individuals (UHNWI). The number of these individuals, who are defined as people with a net worth of $30 million or more, went over 300 in 2017. In a market survey, a typical UHNWI owned two to three homes on average. They had also expressed the desire to purchase another home within the country in the next year.
In a separate study ranking the neighborhoods poised for a breakthrough in luxury homes, Alabang was highlighted as Manila’s “next hotspot.” The ongoing infrastructure, such as the Skyway Stage 3 projects which is set to link the North and South Luzon Expressways by mid-2020, are said to entice more luxury property developers and their customers. Notable properties include the P10 billion Megaworld township Alabang West, an exclusive commercial and residential estate. Other entries included Hong Kong’s Hung Hom, Auckland’s Wynyard Quarter, and Paris’ 11th arrondissement to name a few.