Rising by 24.0% YoY in the second half of 2022, a sign of improving economic conditions. The information technology-business process management (IT-BPM) sector continues to stabilize and job creation has resulted in a boost in the demand for housing.
The price surge is further driven by low supply in the condominium market.
Given the elevated interest rates across the board since our last update, the cautious sentiment continues to prevail in the residential markets across the Asia-Pacific (APAC) region.
Despite the good news of Chinese Mainland ending its Zero-covid strategy and near full reopening of the economy across the region, buyers are feeling the pinch of the high mortgage rates, deteriorating economic outlook and high inflation.
Annualized home values in the APAC region’s residential sector rose noticeably slower in 2022, decelerating to 0.4% from 5.7% six months ago, as more homebuyers are priced out by the rise in mortgage rates and an inflationary environment sparks caution. Still, the slowdown belies the underlying resilience across the region.
In markets that have corrected the most, such as Australia and New Zealand, home equity has stayed positive while the lagging property cycle in emerging Southeast Asian markets is now on a strong recovery footing. Across the region, residential markets continue to be well supported by robust economic fundamentals and are well positioned to weather the ongoing uncertainty.