Bangkok, Ho Chi Minh City, Jakarta, Manila | Wilnesh News

According to data from Jones Lang LaSalle, residential rental prices in Bangkok, Thailand, increased by 18.1% year-on-year.

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Singapore and Hong Kong are generally considered Asia’s most active real estate markets. But some emerging cities are competing with these traditional centers, and some are even beating them in rental yields.

Statistically, Hong Kong is the only known mature property market to make the top five in a list dominated by lesser-known cities. A recent report from real estate services firm Jones Lang LaSalle.

“Longer term, we remain bullish on more mature markets such as Hong Kong, but we primarily see some of the more developing markets in the region including Ho Chi Minh City, Jakarta, Bangkok and Manila ) has seen a more significant rental growth.

JLL said that while rents in Asia-Pacific were broadly stable in the first quarter of 2024, rents in some cities “were supported by strong leasing demand for prime properties and improvements in return to offices and expat arrivals” Substantial growth report.

The following four cities have led Asia’s rental growth recovery so far this year:

Bangkok, Thailand

Residential rent growth in the first quarter of 2024 (year-on-year): +18.1%

Average rental price: 8,292 baht (approximately US$226) per square meter per year

“Rental demand in Bangkok has been soaring,” Allen said. “Much of the rental growth has been driven by the luxury apartment sector, but more broadly, rental demand for apartments has surged due to the current interest rate environment and the return of tourism and expats flying to Bangkok,” he told CNBC.

“Inflated” sales prices, household debt and high interest rates are fueling rental demand, the report said.

By the end of 2024, there will be a total of 2,800 units in 12 projects According to the report, the project will join the Bangkok market and is expected to further drive rental growth.

Ho Chi Minh City of Vietnam

Residential rent growth in the first quarter of 2024 (year-on-year): +5.9%

Average rental price: US$120 per square meter per year

“Ho Chi Minh City, Vietnam’s largest city, is also one of the best-performing markets in the region from a residential perspective,” Allen said.. In the first quarter of 2024, rents in the city increased by 5.9% annually.

The report said rental growth was affected by rising rental prices for new prime properties in the city.

“We are also seeing new supply emerging in the lower-priced market and continued interest rate pressure will help demand,” Allen said.

Jakarta, Indonesia

Residential rent growth in the first quarter of 2024 (year-on-year): +4.8%

Average rental price: IDR 3,214,555 per square meter per year (approximately US$200)

exist According to reports, condo sales in Jakarta have been quite slow over the past three years, with the 2024 presidential election being a factor that has limited sales.

Allen told CNBC Make It that despite the slowdown in sales, rental demand in the city “remains strong,” especially at the high end of the market.

“We expect new projects in Jakarta to remain muted in 2024, which will drive demand for high-quality space across the city,” he said.

Manila, Philippines

Residential rent growth in the first quarter of 2024 (year-on-year): +0.8%

Average rental price: Php 9,984 per square meter per year (approximately US$172)

Manila’s residential rental market grew in the first quarter as demand from senior executives and foreigners maintained steady growth as the return to office rate picked up, the report said.

The report said that as resumption policies further improve in 2024, leasing demand is expected to remain stable.

While rents have been rising in these lesser-known markets, they are falling in Asia’s more established markets. Singapore’s residential rental market has declined sharply, with an annual decrease of 15.7%. Shanghai fell 3% from the previous year.

“Rents in mainland China are still down slightly due to the higher number of high-end apartments available for rent,” Allen told CNBC Make It. “It’s a similar situation in Singapore, with plenty of new inventory,” he said.

“Longer term, we expect rents to pick up in mainland China and Singapore due to weaker supply, a resurgence of expatriates and expanding demand for luxury residential rentals.”