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Thriller in Manila, as city’s 11% price growth leads Knight Frank’s Prime International Residential Index

13 June 2019

Thriller in Manila, as city’s 11% price growth leads Knight Frank’s Prime International Residential Index

Luxury home prices in the Asia Pacific gained 2.7%, higher than the global average
PIRI 100 records lowest rate of annual growth since 2012

Malaysia, 24th April 2019 The Philippines’ capital city of Manila led the Knight Frank Prime International Residential Index (PIRI 100) after luxury home prices jumped 11% last year, bolstered by a lack of supply and a thriving domestic economy.

However, Manila’s performance pales in comparison with the top growing residential markets of the past tracked by the index. In the 12 years that Knight Frank has monitored the value of 100 luxury residential markets, the best-performing city has yet to record annual growth below 21%.

Nicholas Holt, Head of Research, Knight Frank Asia Pacific says, “While Manila’s 11% growth is far from the norm for the city, it confirms the theory that outliers are disappearing, and we are moving to a period of slower price growth. Within Asia-Pacific, a slowdown from a 4.9% average growth rate in 2017 to 2.7% in 2018 illustrates this trend.”

Singapore was the only other city in Asia-Pacific that emerged in the top ten of the PIRI 100. The city-state witnessed more demand for luxury homes following changes to the Seller Stamp Duty regulations. Last year saw prices climbing 9.1%; however, cooling measures introduced in mid-2018, including stamp duties for developers and non-residents, slowed the market considerably, and prices are expected to remain static this year. The third-best performing Asian city is Tokyo, where prices climbed 6.8%.

Dominic Heaton-Watson, Associate Director, International Residential Project Marketing, Knight Frank Malaysia comments, “Of note, Berlin was one of the top performing European residential markets in the past 12 months, and witnessed increasing levels of interest from Malaysia-based investors seeking both capital growth and strong rental returns.”

Knight Frank’s PIRI 100 top 10 performing markets

City

% Change (Dec 2017 to Dec 2018)

Manila

11.1%

Edinburgh

10.6%

Berlin

10.5%

Munich

10.0%

Buenos Aires

10.0%

Mexico City

9.5%

Singapore

9.1%

Boston

8.6%

Madrid

8.1%

San Francisco

7.8%

 

 

 

Sources: All data comes from Knight Frank’s global network with the exception of: Tokyo (Ken Corporation); São Paulo and Rio de Janeiro (Fundação Instituto de Pesquisas Econômicas); Oslo (Torbjørn Ek); Chicago, Los Angeles, Miami, New York, San Francisco, Seattle and Washington DC (S&P CoreLogic Case-Shiller); Barcelona (Ministerio de Fomento); Jersey (States of Jersey); Berlin and Frankfurt (ImmobilienScout 24); Toronto (Toronto Real Estate Board); Mexico (Sociedad Hipotecaria Federal); Stockholm (Svensk Mäklarstatistik AB).

Asia-Pacific Prime Residential Market

Overall, luxury home prices in Asia-Pacific gained 2.7% with most markets experiencing low, yet steady growth. However, growth in the region was still higher than the global average. In 2018, the PIRI 100 recorded its lowest rate of annual increase since 2012 as the value of prime residential markets around the world rose by only an average of 1.3%, down from 2.1% in 2017. The index sees an annual price change of 1% in Malaysia’s luxury residential market from December 2017 to December 2018

“The slowdown in the PIRI 100 last year is a consequence of increasing global interest rates. “As ultra-low interest rates have driven the global real estate markets since 2008, it is inevitable for the markets to experience lower price growth amid the shift in monetary policy,” adds Holt.

In terms of the cost of prime residential real estate, Hong Kong is the second-most expensive market in the world. Every US$1 million spent buys only 22 square metres (sq m) of luxury property in the territory. Singapore with 36 sq m is the fifth most costly place to buy prime residential property while Sydney is at eighth place (52 sq m) and Shanghai at tenth (57 sq m).

Square metres of luxury property US$1m will buy around the world

City

Sq m per US$1m

 Monaco

16

 Hong Kong

22

 New York

31

 London

31

 Singapore

36

 Los Angeles

39

 Geneva

41

 Paris

46

 Sydney

52

 Shanghai

57

Data as at December 2018
Sources: Knight Frank Research, Douglas Elliman, Ken Corporation

For more information, please visit: http://www.knightfrank.com/wealthreport

END

For further information, please contact:

Ms Seline Soo, Marketing & Communications Manager, Knight Frank Malaysia

seline.soo@my.knightfrank.com +603 2289 9669 @KnightFrank_my

Ms Penny Hoo, Marketing Executive, Knight Frank Malaysia

penny.hoo@my.knightfrank.com +603 2289 9667 @KnightFrank_my

Notes to Editors

The PIRI 100 monitors the movement in luxury prices across the top residential markets all over the world. It includes gateway cities, major financial centres, second home hotspots, and luxury ski resorts.

No.

Location

Country

Annual % change

1

 Manila

 Phillippines

11.1%

2

 Edinburgh

 UK

10.6%

3

 Berlin

 Germany

10.5%

4=

 Munich

 Germany

10.0%

4=

 Buenos Aires

 Argentina

10.0%

6

 Mexico City

 Mexico

9.5%

7

 Singapore

 Singapore

9.1%

8

 Boston

 US

8.6%

9

 Madrid

 Spain

8.1%

10

 San Francisco

 US

7.8%

11

 Tokyo

 Japan

6.8%

12=

 Jersey

 UK

6.5%

12=

 Barcelona

 Spain

6.5%

14

 Toronto

 Canada

6.3%

15

 Seattle

 US

6.1%

16=

 Lisbon

 Portugal

6.0%

16=

 Algarve

 Portugal

6.0%

16=

 Chamonix

 France

6.0%

19

 Paris

 France

5.3%

20

 Frankfurt

 Germany

5.1%

21=

 Aspen

 US

5.0%

21=

 Los Angeles

 US

5.0%

23

 Moscow

 Russia

4.3%

24

 Auckland

 New Zealand

4.1%

25=

 Amsterdam

 Netherlands

4.0%

25=

 Cap Ferrat

 France

4.0%

25=

 Beijing

 China

4.0%

28

 Cape Town

 South Africa

3.8%

29

 Miami

 US

3.3%

30

 Sydney

 Australia

3.1%

31=

 Val d'Isere

 France

3.0%

31=

 Marbella

 Spain

3.0%

31=

 Brisbane

 Australia

3.0%

31=

 Washington DC

 US

3.0%

35=

 Cyprus

 Cyprus

2.8%

35=

 Verbier

 Switzerland

2.8%

37

 Jakarta

 Indonesia

2.6%

38

 St Rémy de Provence

 France

2.5%

39=

 Chicago 

 US

2.3%

39=

 Guangzhou

 China

2.3%

41

 Melbourne

 Australia

2.2%

42=

 Perth

 Australia

2.1%

42=

 Gold Coast

 Australia

2.1%

44=

 Mustique

 Mustique

2.0%

44=

 Gstaad

 Switzerland

2.0%

44=

 Monaco

 Monaco

2.0%

47=

 Cannes

 France

1.8%

47=

 Hong Kong

 China

1.8%

49

 São Paulo

 Brazil

1.7%

50=

 Oslo

 Norway

1.5%

50=

 Courchevel 1850

 France

1.5%

50=

 Ibiza

 Spain

1.5%

50=

 Venice

 Italy

1.5%

50=

 Evian

 France

1.5%

55

 Delhi

 India

1.4%

56=

 Megève

 France

1.1%

56=

 Bengaluru

 India

1.1%

57=

 Florence

 Italy

1.0%

57=

 Kuala Lumpur

 Malaysia

1.0%

60

 Méribel

 France

0.9%

61=

 Vienna

 Austria

0.7%

61=

 St Petersburg

 Russia

0.7%

63

 Phuket

 Thailand

0.6%

64=

 Lucca

 Italy

0.5%

64=

 Lake Como

 Italy

0.5%

64=

 Rome

 Italy

0.5%

67

 Mumbai

 India

0.3%

68=

 Bahamas

 Bahamas

0.3%

68=

 St Barts

 St Barts

0.3%

70

 Milan

 Italy

0.2%

71

 Shanghai

 China

0.1%

72=

 Sardinia

 Italy

0.0%

72=

 Lausanne

 Switzerland

0.0%

72=

 Barbados

 Barbados

0.0%

75

 Bangkok

 Thailand

-0.7%

76

 Zurich

 Switzerland

-1.0%

77=

 Brussels

 Belgium

-1.5%

77=

 St Tropez

 France

-1.5%

77=

 Taipei

 Taiwan

-1.5%

80

 Geneva

 Switzerland

-2.0%

81

 Stockholm

 Sweden

-2.3%

82=

 Riyadh

 Saudi Arabia

-2.5%

82=

 Umbria

 Italy

-2.5%

82=

 New York 

 US

-2.5%

85

 Dublin

 Ireland

-2.8%

86

 Mallorca

 Spain

-3.0%

87

 Dubai

 UAE

-3.4%

88

 Rio de Janeiro

 Brazil

-3.8%

89

 Oxford 

 UK

-3.9%

90

 Abu Dhabi

 UAE

-4.3%

91

 London

 UK

-4.4%

92

 Nairobi

 Kenya

-4.5%

93

 British Virgin Islands

 British Virgin Islands

-5.0%

94

 Doha

 Qatar

-5.7%

95

 Bodrum

 Turkey

-7.2%

96

 St Moritz

 Switzerland

-7.5%

97

 The Hamptons

 US

-10.0%

98

 Istanbul

 Turkey

-10.4%

99

 Vancouver

 Canada

-11.5%

100

 Lagos

 Nigeria

-25.0%

 

About Knight Frank

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 15,000 people operating from 418 offices across 60 countries. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit knightfrank.com.

Knight Frank has a strong presence in Malaysia with its headquarters in Kuala Lumpur as well as branches in Penang, Johor and Kota Kinabalu. The company offers high-quality professional advice and solutions across a comprehensive portfolio of property services and is registered with the Board of Valuers, Appraisers and Estate Agents. The Company is licensed to undertake property, valuations / consultancy, estate agency and property management and is also on the panel of all leading banks and financial institutions. For further information about the Company, please visit www.knightfrank.com.my.