The Philippines has been shown to be the top global property market in the year up to Q1 2019 according to the latest Global Property Guide.
With overseas property investors always looking for property price growth, the Philippines has delivered best over the past year.
Property prices rose in 29 out of the 49 world’s housing markets which have so far published housing statistics.
The more upbeat nominal figures, more familiar to the public, showed property price rises in 41 countries, with declines in 8 countries.
Most of Europe and Asia-Pacific continue to experience strong property price rises. There have also been notable increases in the Philippines, Germany, New Zealand and Qatar. But Hong Kong, Ireland, Turkey, Montenegro and most of the Middle East have experienced either house price falls – or a sharp deceleration of house price rises.
The strongest global property markets in the house price survey during the year to Q1 2019 included: Makati CBD, Philippines (+15.15%), Malta (+9.36%), Sri Lanka (+9.27%), Germany (+9.32%), and New Zealand (+8.76%), using inflation-adjusted figures.
The biggest year-on-year house-price declines were in Egypt (-22.61%), Turkey (-13.58%), Montenegro (-12.61%), Kiev, Ukraine (-5.53%), and Dubai, UAE (-5%), again using inflation-adjusted figures.
Top Five Performing Global Property Markets
The Philippines is now the strongest global property market with the average price of 3-bedroom condominium units in Makati CBD surging by 15.15% during the year to Q1 2019, a sharp improvement from the previous year’s 5.87% price rises, using inflation-adjusted figures. Housing prices increased strongly by 5.82% during the latest quarter. After expanding by 6.2% last year, the Philippine economy is expected to grow at a slightly faster pace of 6.4% this year.
Sri Lanka’s property market is experiencing an extraordinary boom, buoyed by its strong tourism sector. Nationwide property prices rose by 9.27% during the year to Q1 2019, after y-o-y rises of 13.83% in Q4 2018, 5.28% in Q3, 14.23% in Q2 and 15.38% in Q1. Quarter-on-quarter, house prices increased 5.63% during the latest quarter. The economy is projected to grow by 3.6% this year, after expansions of 3.2% in 2018 and 3.3% in 2017.
Malta’s property market continues to perform very well, with residential property prices rising by 9.36% during the year to Q1 2019, after y-o-y rises of 10.48% in Q4 2018, 12.87% in Q3, 14.52% in Q2 and 12.07% in Q1. During the latest quarter, property prices rose by 4.37% q-o-q. Malta’s economy is projected to grow by 5.5% this year – the fastest pace in the EU and about three times the EU’s average economic growth.
New Zealand’s property market is strengthening again, with median property prices rising by 8.76% during the year to Q1 2019, in contrast to a y-o-y decline of 3.37% in the prior year. On a quarterly basis, house prices increased 4.36% in Q1 2019. However, economic growth is projected to slow to 2.5% this year, after annual growth rates of 3% in both 2017 and 2018, 4.1% in 2016, 4.2% in 2015 and 3.2% in 2014.
Germany’s property market continues to grow stronger, thanks to extremely low interest rates. The average price of apartments rose by 9.23% during the year to Q1 2019, an improvement after last year’s 4.19% growth. On a quarterly basis, property prices increased 3% in Q1 2019. However, Germany’s economy registered lacklustre performance in 2018, with real GDP growth of just 1.4%, the weakest expansion in five years, and its economy is expected to slow further this year, with a projected growth of just 0.5%.