The property market in Hong Kong remains the top performing in Asia and the second best in the world amidst recently implemented restrictions, a new report said. Other key markets in the Southeast Asia region, specifically the Philippines, gained further strength in the real estate industry thanks to continued economic growth.
In the latest Juwai Global Property Index (GPI) report for Q2 2017, the Hong Kong market still displayed resiliency following its slip that allowed Iceland to take over as the number property market in the world. The former British colony held the spot until March this year, the Juwai index indicated.
But region-wise, Hong Kong proved that it remains the go-to market for property investors. The Juwai index showed that the territory is the dominant market in Asia after posting year on year growth of 19.3 percent by the end of June 2017. From the previous month, the Hong Kong market improved by 4.2 percent, the report said.
From January to July 2017, the property transactions in Hong Kong reached a total of 35,000, which the Juwai report said pointed to volume increase of 47.4 percent, year on year. In terms of gains in value, the index showed a jump of 80 percent.
The Junwai report noted that Hong Kong’s property market growth was achieved “despite strict restrictions, including a 15 percent residential property stamp duty imposed on non-first time buyers in November 2016.” The latest figures also reflected a dramatic comeback for the special administrative region, which in June 2016 saw an alarming retreat of 10.5 percent.
Other performers in the region
The report also called on the Philippines, which according to Juwai has a “thriving economic growth has kept the momentum of housing prices … on the rise.” From the start of 2011 to the close of 2016, property prices in Makati, which is the Philippines’ premier central business district area, has surged by 49 percent due to the country’s expanding economy, the Junwai index indicated.
“The Philippines is projected to maintain an economic growth rate of 6.5 percent to 7.5 percent this year, and this will bolster its housing market and property prices,” the report added.
Another notable performer in the region is Singapore where housing demand is one the rise, likely spurred by the cooling measures implemented by the country’s economic managers. “Singapore’s economic growth has been stable, its GDP rose 2.9 percent in Q2 2017, and Singapore is set to see an annual growth of two to three percent this year,” the report stated.