Housing prices in the Asia-Pacific region are rising – in some cases by 37%.
Homebuyers are taking advantage of the ongoing stimulus fueled by the pandemic, while international investors are looking for a place to put their money.
To get a better idea of property price dynamics, CNBC compared the average selling prices of one, two, three and four-bedroom properties in four major cities in the Asia-Pacific region: Singapore, Seoul, Sydney and Taipei.
The findings are based on a combination of data from governments and local properties.
In the case of Seoul, the capital of South Korea, where real estate is measured in the local unit “pyeong”, prices have been recalculated according to their comparable number of bedrooms.
By comparison, the average U.S. home price for active listings in July 2021 was $ 385,000, up 10.3% from last year. data from the website realtor.com.
Each of the four cities is rightfully a hub for international business, and Singapore stood out as the most expensive city to own an apartment compared to Seoul, Sydney and Taipei.
Here’s a snapshot of property prices in four cities, according to CNBC’s estimate.
Singapore is an Asian financial center known for its tall skyscrapers and high cost of living – became the most expensive place to buy real estate, according to a study by CNBC of four major cities in the Asia-Pacific region.
One- and two-bedroom properties in the upscale downtown area of state cities are worth about $ 1.03 million, according to average selling price data compiled on the real estate website. PropertyGuru January to July 2021
Properties with three or four bedrooms have risen in price by almost $ 2.5 million over the same period.
Skyscrapers dominate the skyline in downtown Singapore.
Prices for one and two bedroom homes remained relatively stable throughout the year until July. However, three-bedroom properties have “grown substantially,” with prices rising more than 5% annually – especially in more attractive areas such as Alexandra, Commonwealth, Chinatown and Tanjong Pagar.
The centrality in such locations, coupled with the large space for teleworking, made triple beds “a better option,” Ti Hong Tan, regional manager of PropertyGuru Singapore, told CNBC in an email.
“Space is no longer a luxury but a necessity,” he said. “So home buyers may find the typical single or double beds too petite. Combined with the higher prices per square foot of single or double beds … triple beds (have become) a better option over home.” compared to the rest. “
The same cannot be said for the four-bedroom property, where prices have remained stable throughout the year and in some cases have even dropped as sellers sought to attract higher-level buyers.
Bustling capital of South Korea Seoul comes close to Xi
The East Asian city has long had a reputation for sky-high property prices, and this year was no exception, spawning a first-class expensive buyers were dubbed “lightning beggars.”
The Han River flows through the heart of the South Korean capital Seoul.
Sungjin Kim | The moment | Getty Images
According to the South Korean real estate app, one and two-bedroom properties of up to 99 square meters in the wealthy central residential area of Gangnam in Seoul were worth an average of $ 855,000 as of July 2021. Zigbang…
Properties with three or four bedrooms ranging from 99 to 165 square meters cost about $ 1.8 million.
As in Singapore, the rise in prices in South Korea has been less dramatic for smaller properties. From January to June this year, single beds less than 66 square meters in price have risen by 5%.
Studio-style office buildings – or buildings that combine residential and commercial properties popular with single residents – grew by 8%. Meanwhile, larger properties grew by an average of 31% per year, with prices for the largest properties growing the most.
Yong-Jin Ham, head of big data at Zigbang, said the continued rise in property prices is largely due to the low interest rates that have made people strive for better return on investment, as well as “sufficient liquidity and lack of alternatives. investment directions “.
Last week, Central Bank of South Korea raised interest rates, becoming the first advanced economy to do so during a pandemic. That could cool off the booming real estate market, but Ham said he doesn’t expect prices to drop anytime soon.
“I believe the market is at a turning point,” Ham said. “However, I do not see a pullback in prices this year. I predict that the upward trend will continue this year. ”
Australia’s coastal city Sydney is home to some of the most expensive real estate properties in the country, despite being cheaper than other hotspots in the region.
According to data from an online real estate site, one and two bedroom properties in Greater Sydney were worth an average of $ 574,246 as of June 2021. Domain…
Three and four bedroom properties sold for an average price of $ 914,969.
A bird’s eye view of the eastern suburbs of Sydney around the harbor with soft morning light and blue skies.
zetter | iStock | Getty Images
Property prices rose a modest 3% for one and two-bedroom apartments in the first half of 2021, while prices for three-bedroom apartments rose by about 8%.
However, the rise in home prices over the same period was much more significant, rising from 15% for two-bed homes to 27% for four-bed homes. Interestingly, four-bedroom apartments in general have risen in price the most, soaring 37% per year.
Domain head of research and economics, Nicola Powell, said such one-off sales represent a small portion of the market in premium locations, with most of the growth still coming from home sales.
“This reflects the changing priorities of buyers as the need for space becomes more and more of a priority,” Powell said. “This is also a reflection of the rise in property prices as investors have mostly sat on the sidelines in the past year and have only become more active in recent months.”
Taiwan’s capital Taipei has become the most accessible city in the Asia-Pacific region according to CNBC.
According to June 2021 data compiled by the international real estate agency Savills, in the city, properties with one or two bedrooms cost an average of $ 473,500.
Meanwhile, properties with three and four bedrooms grossed an average of $ 977,000.
There are many high-rise buildings in the capital of Taiwan, Taipei.
Ratima Sritangwong | EyeEm | Getty Images
Property prices as a whole have risen by about 4.5% year on year. However, the greatest demand was for new real estate: prices have more than doubled compared to 10.4%.
Low interest rates, pandemic-fueled incentives and trade tensions between the US and China prompting tech companies to relocate to Taiwan have created the perfect storm for property prices in the capital, said Erin Ting, head of research at Savills. She said she did not expect the trend to ease anytime soon.
“Although the average price for July has yet to be announced, I think the price will continue to rise,” Ting said.
– CNBC’s Cheri Kang contributed to this report.