The Australian housing market has experienced a remarkable surge in prices over the past four years since the beginning of the pandemic. Despite initial fears of sharp declines and predictions of steep drops as interest rates climbed, home prices have defied expectations and surged by a staggering 39.9% nationally, according to PropTrack.

Factors Influencing the Housing Market

Multiple factors have influenced and shifted housing trends during this period. The supply of properties for sale, population growth, building activity, rental market conditions, interest rates, and interstate and regional migration have all played a role in driving home price growth across Australia since March 2020. Additionally, economic policies, consumer behavior, and societal changes in response to the pandemic have contributed to the complex interplay of factors affecting the housing market.

Regional Home Prices Outperform Capital Cities

While capital city markets have outperformed regional areas in the past year, with growth rates of 7.64% and 4.67%, respectively, regional home prices have significantly outperformed their capital city counterparts in every state except Western Australia (WA) and Northern Territory (NT) since the onset of the pandemic. This outperformance was mainly observed during the property price boom of the pandemic.

Cebu Emerges as a Major Property Investment Destination in the Philippines

Colliers reports that Cebu, the queen city of the south in the Philippines, has become a major property investment destination. Developers are expanding their presence in Cebu, which remains one of the most attractive and largest residential hubs outside of Metro Manila. The region offers opportunities to capture demand outside of the capital and tap into the growing upscale and luxury markets.

Residential Projects Ramp Up in Cebu

Cebu’s property market is well-positioned for an upswing, with numerous residential projects ramping up in the area. In 2023, 10,500 new condominium units were completed in Cebu, including notable projects like Avida Towers Riala, Mivela Garden Residences, Casa Mira Towers Guadalupe, and Casa Mira Towers Mandaue. The completion of Thyme Residences, the first condominium project in Minglanilla, was also recorded.

Colliers expects Cebu’s condominium stock to reach 93,100 units by 2026, with an average annual completion of 5,000 new units from 2024 to 2026. National developers have several projects in the pipeline, including The Villas at Aruga by Rockwell Land, Pearl Global Residences by Megaworld, Urban Deca Homes Banilad (2 towers) by 8990, and Lucima by Arthaland. These projects span across Cebu Business Park, Mactan Newtown, Lapu-Lapu City, and Mandaue City, offering a range of affordable to luxury options.

Mumbai’s Office Market Growth and High Housing Sales in Q1 2024

Mumbai has witnessed significant growth in its office market and high housing sales during the first quarter of 2024. According to Knight Frank India’s report, office space transactions in Mumbai reached 2.8 million square feet (msf), marking a 29% year-on-year (YoY) increase. Office completions surged by 986% to reach 0.4 msf during the quarter.

Strong Performance in the Residential Market

The residential market in Mumbai also showed robust performance, with a total sales volume of 23,743 units and a 17% YoY growth. The city recorded the highest sales among eight major Indian cities during Q1 2024. Additionally, over 25,263 units were launched in Mumbai during the same period.

The average weighted residential price in Mumbai increased by 6% YoY during Q1 2024, with a value of Rs 7,891 per square foot. The quarter also saw a remarkable growth of 259% in the ticket size category of above Rs 10 million, with 7,401 units sold in this segment. For the ticket size under Rs 5 million category, 10,527 units were sold, showcasing a 13% YoY growth.

Occupancy and Leasing Activity

The major occupancy and leasing activity in Mumbai during Q1 2024 was driven by India Facing Businesses, which accounted for 88% of the market share. Flex office areas accounted for over 9% share, while third-party IT services occupied 3% of the market.

In conclusion, the Australian housing market has defied expectations with a surge of 39.9% in prices since the pandemic began. Cebu in the Philippines has emerged as a major property investment destination, with numerous residential projects ramping up. Mumbai has experienced growth in its office market and high housing sales during Q1 2024. These developments indicate positive trends in the real estate markets and offer promising opportunities for investors and buyers.