 "Mumbai, Bengaluru in top 10 cities with highest home price rise in APAC")
Mumbai and Bengaluru were among the 10 cities in the Asia-Pacific (APAC) region that witnessed the highest rise in residential prices in the second half of 2023, a report released on Tuesday showed. The National Capital Region (NCR) featured on the 11th spot in the list of 25 countries in the region.
According to the "Asia-Pacific Residential Review Index for H2 2023" released by real estate consultancy Knight Frank, Bengaluru saw the eighth highest year-on-year (Y-o-Y) jump in home prices during the period at 7.1 per cent. It was followed by 7 per cent in Mumbai, which ranked 9th on the list.
The home prices in NCR rose 6 per cent Y-o-Y and it ranked 11th on the list. Notably, Mumbai, NCR and Bengaluru constituted 60 per cent of the total sales volume across India in 2023.
"In 2023, residential property demand in India's major cities has surged to its highest level in a decade, despite the increase in mortgage rates and property prices," said Shishir Baijal, chairman and managing director, Knight Frank India.
In the region, Singapore saw the highest price rise of 13.7 per cent. It was followed by 12.8 per cent in Perth and 12.1 per cent in Brisbane.
"Notable performers such as Singapore, Sydney, Brisbane, Perth, Manila, Delhi, and Bengaluru have benefited from factors like the wealth effect, demand exceeding supply, and optimistic economic growth prospects," said Kevin Coppel, managing director at Knight Frank Asia-Pacific.
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Four countries saw a decline in home prices, primarily due to weak market sentiment, high interest rates and substantial inventory. These were Hong Kong (-6.8 per cent), Seoul (-5.5 per cent), Shenzen (-3.6 per cent) and Guangzhou (-3 per cent).
"With significant tailwinds such as the expected reduction in interest rates and relatively strong economic growth, residential demand is anticipated to sustain momentum in 2024," added Baijal.