Manila tops global luxury property index
The Philippine capital Manila surprisingly tops the new ranking of price appreciation of luxury property globally, compiled by international real estate company Knight Frank in its newly published Wealth Report 2019.
The ranking, which tracks the movement of luxury residential prices in the world’s top 100 cities and second home markets between December 2017 and December 2018, is calculating a so-called Prime International Residential Index (PIRI 100).
It turned out that Manila topped the PIRI 100, with luxury home prices rising by 11 per cent in the period. This was driven by a lack of supply and the Philippines’ thriving economy with annual GDP growth having exceeded 6 per cent in 2018, the report stated, adding that this also motivated some expatriates to grab a slice of real estate back home.
“Manila indeed tops the PIRI 100, but its performance needs to be put into perspective,” Kate Everett-Allen, head of international residential research at Knight Frank, noted.
“In the past 12 years that we have been compiling the index, the top-performing market has yet to record annual growth below 21 per cent. This is a breakaway from the norm. So 11% is quite a departure, but it confirms our theory that prime markets are converging and the outliers are disappearing,” she added.
But buying prime property seems still to be a safe bet in the Philippines, whereby it is all depending on the location.
Apart from trendy neighbourhoods such as Bonifacio Global City, Eastwood City, Century City, Commonwealth, Rockwell Center, McKinley Hill, Ortigas Center, Bel-Air Village, Legazpi Village and Salcedo Village, there seems to be a new hot spot developing in Metro Manila, which is Alabang in Muntinlupa on the shores of Laguna Lake, according to Jan Custodio, senior director at Knight Frank Philippines.
“Alabang is poised to be the next hotspot in Metro Manila, with a series of major infrastructure and development projects set to enhance the area’s accessibility and appeal,” Custodio said.
”The biggest road project, Skyway Stage 3, is due for completion in mid-2020, and will provide a seamless connection between the north and south of the metropolis through an elevated link road that connects the North and South Luzon Expressway systems,” he added.
Among the ambitious developments in Alabang is Alabang Town Center, an open-air shopping center that combines nature with retail, and Filinvest City, a multi-use residential, business and wellness hub that prioritises green landscapes in an urban environment.
Meanwhile, a new project by Megaworld, Alabang West, aspires to bring California’s Beverly Hills to Manila. The 10-billion-peso ($191 million) project will have a 1.3 kilometer commercial and retail row, inspired by Hollywood’s Rodeo Drive, while the exclusive Alabang West Village will provide 788 residential lots ranging from 250 to 800 square meters, according to Custodio.
Knight Frank’s PIRI 100 top ten performing markets:
% 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%
Source: Knight Frank
The Philippine capital Manila surprisingly tops the new ranking of price appreciation of luxury property globally, compiled by international real estate company Knight Frank in its newly published Wealth Report 2019. The ranking, which tracks the movement of luxury residential prices in the world’s top 100 cities and second home markets between December 2017 and December 2018, is calculating a so-called Prime International Residential Index (PIRI 100). It turned out that Manila topped the PIRI 100, with luxury home prices rising by 11 per cent in the period. This was driven by a lack of supply and the Philippines’ thriving...
The Philippine capital Manila surprisingly tops the new ranking of price appreciation of luxury property globally, compiled by international real estate company Knight Frank in its newly published Wealth Report 2019.
The ranking, which tracks the movement of luxury residential prices in the world’s top 100 cities and second home markets between December 2017 and December 2018, is calculating a so-called Prime International Residential Index (PIRI 100).
It turned out that Manila topped the PIRI 100, with luxury home prices rising by 11 per cent in the period. This was driven by a lack of supply and the Philippines’ thriving economy with annual GDP growth having exceeded 6 per cent in 2018, the report stated, adding that this also motivated some expatriates to grab a slice of real estate back home.
“Manila indeed tops the PIRI 100, but its performance needs to be put into perspective,” Kate Everett-Allen, head of international residential research at Knight Frank, noted.
“In the past 12 years that we have been compiling the index, the top-performing market has yet to record annual growth below 21 per cent. This is a breakaway from the norm. So 11% is quite a departure, but it confirms our theory that prime markets are converging and the outliers are disappearing,” she added.
But buying prime property seems still to be a safe bet in the Philippines, whereby it is all depending on the location.
Apart from trendy neighbourhoods such as Bonifacio Global City, Eastwood City, Century City, Commonwealth, Rockwell Center, McKinley Hill, Ortigas Center, Bel-Air Village, Legazpi Village and Salcedo Village, there seems to be a new hot spot developing in Metro Manila, which is Alabang in Muntinlupa on the shores of Laguna Lake, according to Jan Custodio, senior director at Knight Frank Philippines.
“Alabang is poised to be the next hotspot in Metro Manila, with a series of major infrastructure and development projects set to enhance the area’s accessibility and appeal,” Custodio said.
”The biggest road project, Skyway Stage 3, is due for completion in mid-2020, and will provide a seamless connection between the north and south of the metropolis through an elevated link road that connects the North and South Luzon Expressway systems,” he added.
Among the ambitious developments in Alabang is Alabang Town Center, an open-air shopping center that combines nature with retail, and Filinvest City, a multi-use residential, business and wellness hub that prioritises green landscapes in an urban environment.
Meanwhile, a new project by Megaworld, Alabang West, aspires to bring California’s Beverly Hills to Manila. The 10-billion-peso ($191 million) project will have a 1.3 kilometer commercial and retail row, inspired by Hollywood’s Rodeo Drive, while the exclusive Alabang West Village will provide 788 residential lots ranging from 250 to 800 square meters, according to Custodio.
Knight Frank’s PIRI 100 top ten performing markets:
% 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%
Source: Knight Frank
