Cities with biggest rise in residential prices revealed
Manila and Budapest saw the strongest rise in annual price growth year-to-date and in Q1 2020 respectively, according to the latest Global Residential Cities Index from Knight Frank.
Manila leads the annual rankings for the second consecutive quarter, with price growth of 22% in the year to March 2020, with Budapest following closely behind at +16%.
Aside from Manila, Seoul and Melbourne are Asia Pacific’s top performers (+13%).
The average annual growth across 150 cities was 4.3%, with 85% of cities tracked registered ‘static’ or ‘positive’ price growth over the 12 month-period.
The report covers the period up to 31 March as the COVID-19 pandemic was at its peak in parts of Asia but was yet to impact Europe or the Americas. This means that the results, according to Knight Frank, could change within the next six to 12 months.
Knight Frank said within the index: “We expect sales volumes to feel the impact of COVID-19 more than prices with employment protection schemes and mortgage holidays in many advanced economies likely to reduce the number of distressed sales and hence the likelihood of price falls.
“Whilst the index’s overall performance may not drop significantly, we do expect the city rankings to look very different in six to 12 months’ time with those markets that have been effective in containing the pandemic, and where lockdowns were short-lived, most likely to show more resilience.”
The top ranking UK cities were London and Manchester, with annual growth of 4.6%.