Makati City - Manila has emerged as the leader in luxury residential market price growth globally, according to a report by real estate consultancy firm Santos Knight Frank (SKF). A press conference in Makati City revealed that the Philippine capital experienced a 21.2 percent increase in prime residence prices over the last year and a 19 percent rise in the past six months, as per data from the Knight Frank's Prime Global Cities Index.
According to Philippines News Agency, Manila's growth in luxury residence prices outpaced other major cities, including Dubai, Shanghai, Mumbai, Madrid, Stockholm, Seoul, Sydney, Nairobi, and Delhi. The report indicated that for the six-month growth period, Seoul was the closest competitor to Manila, registering a 15.6 percent increase, followed by Dubai at 12.3 percent. SKF chairman and CEO Rick Santos attributed the surge in Manila's luxury residential prices to pent-up demand, the resurgence of the residential leasing market, and limited supply in central business districts.
The SKF report also highlighted the continued momentum of the Philippine property market post-Covid-19 pandemic. In terms of office space occupancy, Metro Manila recorded an average rate of 80 percent over the past three quarters, a significant recovery from the all-time low of 75 percent. The Fort Bonifacio area reported the lowest vacancy rate at 11 percent, followed by Makati at 20 percent and Quezon City at 22 percent during the third quarter of 2023. Additionally, Fort Bonifacio and Makati lead in lease rates in the National Capital Region.
Santos noted that the office market is on a path of recovery post-Covid, with increased demand from conventional office tenants and flexible office operators driving commercial leasing requirements. He expressed optimism for the continuation of this trend into 2024. Furthermore, Santos mentioned that strong investor confidence in the Philippines during President Ferdinand R. Marcos Jr.'s administration has bolstered the real estate market, despite rising interest rates.