APAC residential leaders: Bengaluru and Mumbai have emerged as frontrunners in the Asia-Pacific residential market, securing positions within the top 10 for annual price growth in H2 2023.

In Bengaluru, residential prices saw substantial year-on-year (YoY) growth of 7.1 per cent in H2 2023, securing the city's position at 8th in the Asia-Pacific Residential Review Index. Mumbai closely followed, ranking 9th with a YoY growth of 7.0 per cent. The National Capital Region (NCR) of India also made its mark, securing the 11th position with a price growth of 6.0 per cent YoY during the same period.

Bengaluru's boom & Mumbai's festive frenzy

Bengaluru, known as India's Silicon Valley, has witnessed a surge in interest from developers beyond the city's boundaries, leading to a significant 24 per cent increase in the number of launches during H2 2023. The city recorded sales of 27,799 units during this period, with an average price of Rs 5,900 per sq ft.

Mumbai, on the other hand, experienced heightened demand during festive periods such as Navratri, Dussehra, and Diwali, contributing to a substantial improvement in sales during H2 2023. The city witnessed sales of 46,073 units, with an average price of Rs 7,883 per sq ft.

Meanwhile, the National Capital Region recorded sales of 29,888 units in H2 2023, with an average price of Rs 4,579 per sq ft.

Commenting on the robust performance of these markets, industry experts anticipate sustained momentum in residential demand in 2024, buoyed by expected reductions in interest rates and robust economic growth.

Singapore leads the pack

While Bengaluru and Mumbai shine brightly in the Knight Frank report, Singapore takes the lead as the best-performing Asia-Pacific market, boasting a 13.7 per cent YoY growth in H2 2023. Other notable performers include Sydney, Brisbane, Perth, Manila, and Delhi, all benefiting from factors such as the wealth effect, demand exceeding supply, and optimistic economic growth prospects.

However, challenges persist in certain markets, notably in Hong Kong, which ranks last in the index. Weak market sentiment, high-interest rates, and a substantial inventory of unsold completed new flats are amongst the challenges impacting Hong Kong's residential market.

Kevin Coppel, Managing Director, Knight Frank Asia-Pacific, highlights that ongoing constraints on the supply side, including input costs, labour shortages, and construction delays, have supported prices in numerous cities across the Asia-Pacific region.