The Asia-Pacific residential property market witnessed accelerated growth in H2 2023, with Singapore registering as the top-performing market with 13.7% year-on-year (y-o-y) growth, according to the latest Asia-Pacific Residential Review Index by Knight Frank.

Overall, 21 out of 25 cities monitored in the region recorded positive annual price growth in H2 2023, with the average y-o-y residential price growth in the cities surveyed coming in at 4.5%.

Singapore, despite a quieter sales market and reduced launches due to a challenging macroeconomic environment and higher acquisition costs following cooling measures in April 2023, remains a safe haven, the report notes, attracting talent and maintaining population growth. This, coupled with the wealth effect, is expected to support stable prices despite a decline in transaction volumes.

In the Manila prices surged by 8.6% y-o-y, driven by the resumption of business process outsourcing firms. This has led to an increasing number of expats returning to oversee business operations, contributing to the area’s strong performance.

In India, despite higher mortgage rates and prices, demand for residential properties across the country’s major cities reached a 10-year high in 2023. The top eight property markets experienced a 5% growth in annual sales, totalling 329,097 apartments in 2023.

“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,” said Kevin Coppel, managing director at Knight Frank Asia-Pacific.