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Surprise! Manila is World's Top Luxury Home Market For 2018

The market growth had much to do with the increase in the country's ultra-wealthy population
By Hannah Lazatin for TownandCountry.ph |


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, Manilaâs luxury home market saw the most growth in the world, with an 11 percent increase in prices. The report compiled a list of the worldâs hottest 100 cities, using each marketâs price increase as its main unit of measurement. Manilaâs increase is speculated to spring from a six percent growth in the annual GDP and the lack of supply.

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While property developers might rejoice, the annual Knight Frank Prime International Residential Index (PIRI 100) clarifies that Manilaâs 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.

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In a separate study ranking the neighborhoods poised for a breakthrough in luxury homes, Alabang was highlighted as Manilaâs ânext hotspot.â 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 Kongâs Hung Hom, Aucklandâs Wynyard Quarter, and Parisâ 11th arrondissement to name a few.

 

 

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This story originally appeared on Townandcountry.ph.

* Minor edits have been made by the Entrepreneur.com.ph editors.

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