New information from Santos Knight Frank found that the Metro Manila luxury residential property market continues its strong performance ranking tops in Asia Pacific and fourth globally. The sector grew by 6.2 percent during between the second quarter of 2018 and 2019, according to the Knight Frank Prime Global Cities Index Q2 2019.
Santos Knight Frank noted that developers’ confidence in the prime condominium market can be seen in their willingness to launch more high-end projects. Two of the most recent luxury condominium launches are being developed jointly by major developers.
Aurelia Residences is a joint venture between Shang Properties and Robinsons Land being built in Bonifacio Global City. Meanwhile, The Estate Makati is being developed by both SMDC and Federal Land and recorded pre-sales of 40 percent before its launch.
Demand for luxury residential property in Metro Manila is being driven by two groups. Overseas buyers continue to eye the Philippines for investment opportunities as the weakening of the Philippine peso has provided them with a boost in spending power.
Additionally, the Philippines is recording a growth in the number of ultra-high net worth individuals in the country. Strong demand for property is coming from this group. According to Knight Frank’s The Wealth Report 2019, the number of UHNWIs in the Philippines will increase by 38 percent between 2018 and 2023. This would be the world’s second largest growth behind only India.
Prices for luxury condominiums across Metro Manila have been skyrocketing as demand continues to outstrip supply. During the last two years, selling prices for prime residential condominiums in Makati have increased by almost 25 percent while prices in Bonifacio Global City rose by 12 percent, Santos Knight Frank reports.
This price growth easily surpasses other sectors of the property market in Metro Manila. Data from Bangko Sentral ng Pilipinas (BSP) found residential property prices in National Capital Region increased by 5.2 percent between the second quarter of 2018 and 2019.