News roundup: Australia’s housing market prices surge after the pandemic, and other headlines

For PropertyGuru’s real estate news roundup, a round of good news: Australia’s housing market prices defy expectations and surge to a high of 39.9 percent nationally; Colliers reports Cebu as a major property investment destination across the Philippines, with numerous projects ramping up; and Mumbai registered office space transactions of 2.8 million square feet (msf) during Q1 2024, while the city’s residential market saw the highest sales at 23,743 units across the eight Indian cities during Q1 2024.

Four years on: How much Australian home prices have surged since the pandemic

In the four years since the pandemic began, home prices around the country have staged a remarkable feat, according to PropTrack.

From fears of sharp falls through the pandemic, to predictions of steep declines when interest rates began to quickly climb, home prices have defied the expectations of many, surging 39.9 percent nationally.

Throughout this four-year period, multiple factors have influenced and shifted housing trends, with the housing market cycling through different phases as a result of the pandemic’s wide-ranging economic and social impacts.

The supply of properties for sale, population growth, building activity, rental market conditions, interest rates, and interstate and regional migration have all affected home price growth, as well as how it has been distributed Australia-wide since March 2020.

And at the same time these factors have faced a complex interplay of economic policies, consumer behavior, and broader societal changes in response to the pandemic.

In the past year capital city markets have outperformed regional areas (7.64 percent versus 4.67 percent), but comparing growth since the pandemic onset, regional home prices have significantly outperformed their capital city counterparts in every state except Western Australia (WA) and Northern Territory (NT).

This outperformance was largely accumulated throughout the pandemic property price boom.

The Philippines’ Cebu properties well-positioned for upswing, with residential projects ramping up

The Colliers Philippines team had an action-packed roadshow in Cebu last 11th and 12th March. They updated their clients on the latest and unbiased property insights and shared data-backed recommendations.

In the first part of their report in BusinessWorld, the Collier team concluded that Cebu is viable for more property projects, further cementing the queen city of the south’s stature as a major property investment destination across the Philippines. Cebu remains an important location for property developers looking to expand footprint outside of the Philippine capital, as supported by continued landbanking and launch of more integrated communities. With immense potential for further expansion, Cebu’s property market is definitely well-positioned for an upswing. It is ready to pivot for further growth.

Outside of Metro Manila, developers have constantly expanded their presence in other thriving locations outside of Luzon. Cebu is a top-of-mind option for national players planning to capture demand outside of Metro Manila and at the same time corner the growing demand from burgeoning upscale and luxury markets. Cebu remains as one of the most attractive and largest residential hubs outside of Metro Manila. National developers continue to launch in Metro Cebu as they are optimistic of the locale’s potential for growth even beyond 2024.

In the second part of their report on Cebu’s exciting residential landscape, Colliers recorded the completion of 10,500 new condominium units in Cebu in 2023. Among the notable completions during the year include Avida Land’s Avida Towers Riala, as well as Cebu Landmaster’s Mivela Garden Residences, Casa Mira Towers Guadalupe, and Casa Mira Towers Mandaue. Meanwhile, we also recorded the completion of Thyme Residences, the first condominium project in Minglanilla.

By 2026, Colliers expects Cebu’s condominium stock to reach 93,100 units with the average annual completion of 5,000 new units from 2024 to 2026. Projects from national developers in the pipeline include Rockwell Land’s The Villas at Aruga, Megaworld’s Pearl Global Residences, 8990’s Urban Deca Homes Banilad (2 towers), and Arthaland’s Lucima. These projects, classified as affordable to luxury in terms of total contract price (TCP) per unit, are dispersed across Cebu Business Park, Mactan Newtown, Lapu-Lapu City and Mandaue City.

Mumbai sees office market growth at 2.8 msf, highest housing sales in Q1 2024

Mumbai registered office space transactions of 2.8 million square feet (msf) during Q1 2024, marking a 29 percent year-on-year (YoY) increase, according to the latest report by Knight Frank India in Housing.com. Additionally, office completions in Mumbai surged by 986 percent to reach 0.4 msf during the quarter. The residential market saw a total sales volume of 23,743 with a 17 percent YoY growth, the report India Real Estate: Residential and Office for January-March 2024 (Q1 2024) stated.

During Q1 2024, the major occupancy/leasing activity was driven by India Facing Businesses with 88 percent attribution. Flex office areas accounted for over 9 percent share and 3 percent was occupied by third party IT services.

The report also highlighted that the residential market of Mumbai saw the highest sales at 23,743 units across the eight Indian cities during Q1 2024. Over 25,263 units were launched in Mumbai during the same period. The average weighted residential price witnessed an increase of 6 percent YoY during Q1 2024 with a value of Rs 7,891 sq ft, the report said. During the quarter, Mumbai observed a commendable growth of 259 percent in the ticket size category of above Rs 10 mn. A total of 7,401 units were sold in this segment. For the ticket size under Rs 5 mn category, 10,527 units were sold, showcasing 13 percent YoY growth.

The Property Report editors wrote this article. For more information, email: [email protected].