APAC residential price growth hits 5.6% in H1
Buyers are becoming less price sensitive.
According to Knight Frank’s Asia-Pacific Residential Review Index for H1 2022, the average annual growth in the region stands at 5.6% year-on-year (YoY), which shows a more moderate growth as compared to six months ago.
Knight Frank’s report tracks the movement of average residential prices within the Asia-Pacific region across 23 cities, and 19 out of these 23 cities registered positive annual price growth in the first half of 2022.
“While the accelerated normalisation of monetary policy across much of the region will generally soften prices in residential real estate, the extent to which this will happen will vary significantly across the region. The position in the market cycle remains a crucial determinant and we can expect just a few markets to be more sensitive to higher interest rates in the current hiking cycle. Homes in the high-to-luxury end of market will also remain on an uptrend, as buyers are less price sensitive and view homes as an indication of status and part of an enduring legacy," said Victoria Garrett, Head of Residential, Asia-Pacific.