According to the review, 21 out of 25 Asia-Pacific (APAC) cities have recorded positive annual price growth with Singapore ranked as the best-performing Asia-Pacific market with 13.7% year-on-year growth.
Recoding annual price growth of 7.1% in the second half of 2023, Bengaluru was ranked 8th on the Asia-Pacific Residential Review. Mumbai, India’s financial capital, ranked 9th, witnessing year-on-year growth of 7% while NCR was ranked 11th with a price growth of 6% during this period.
Mumbai, NCR, and Bengaluru constituted 60% of the total sales volume across Indian markets in 2023.
“In 2023, residential property demand in India’s major cities surged to its highest level in a decade, despite the increase in mortgage rates and property prices. With significant tailwinds such as the expected reduction in interest rates and relatively strong economic growth, residential demand is anticipated to sustain momentum in 2024,” said Shishir Baijal, CMD, Knight Frank India.
Bengaluru is gaining interest from non-city centric developers leading to a significant 24% surge in the number of launches in the city during the second half of 2023. The city recorded sales of 27,799 units during this period. The average price in the city is recorded at Rs 5,900per sq ft. Mumbai region saw a significant improvement in sales in the second half of 2023 majorly due to heightened demand during festive periods like Navratri, Dussehra, and Diwali. The city recorded sales of 46,073 units between June and December 2023. The average price in the city was recorded at Rs 7,883 per sq ft.The average price in NCR is recorded at Rs 4,579 per sq ft and the market witnessed sales of 29,888 units in the second half of 2023.
The Hong Kong residential market ranked last in the index and is facing challenges like weak market sentiment, high-interest rates, and a substantial inventory of unsold completed new flats. Elevated mortgage rates are impacting homebuyers’ affordability, leading them to take a more cautious approach.
“The residential market experienced a surge in the past six months, following the FED’s decision to pause rate hikes, which encouraged potential buyers who had been waiting on the sidelines to make purchasing decisions. Ongoing constraints on the supply side, including input costs, labour shortages and construction delays, have played a role in supporting prices in numerous cities across the Asia-Pacific region,” said Kevin Coppel, managing director at Knight Frank Asia-Pacific.
According to him, notable performers such as Singapore, Sydney, Brisbane, Perth, Manila, Delhi, and Bengaluru have benefited from factors like the wealth effect, demand exceeding supply, and optimistic economic growth prospects.
Despite higher mortgage rates and prices, the demand for residential properties across India’s major cities has reached a 10-year high in 2023. The top 8 property markets experienced a 5% growth in annual sales, totalling 329,097 apartments in 2023.
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