In 3Q2020, residential homes in Manila witnessed a price increase of 35% y-o-y, exceeding other global cities, Knight Frank says.
This is accompanied by cities in Turkey, where second, third and fourth positions were held by Izmir (28 percent), Ankara (27 percent) and Istanbul (26 percent). Russia’s St Petersburg (19 percent) took fifth spot.
In sixth position is Seoul, the capital city of South Korea, where, amid 20 rounds of cooling initiatives in recent years, residential prices have continued to report an annual price rise of 15 percent. Prices were bolstered by the rapid economic recovery and speculative activities of the region, Knight Frank says.
Banks are experiencing heavy demand for high-end projects in the Philippines and a rise in building and labor costs.
The increase in residential price growth is due by Knight Frank to record low interest rates, massive fiscal stimulus initiatives and pent-up demand. Because of travel limitations, buyer demand has been mainly domestic, it says.
Elsewhere, up until 3Q2020, about 15% of cities experienced year-on-year price reductions. In India, Spain and the UAE, this involves towns.