10 Trends as Home Attainability Remains Constrained

ULI Asia Pacific has released its 2025 Asia Pacific Home Attainability Index, revealing persistent challenges to affordable or accessible housing across the region. The fourth edition of the report assesses 51 market segments across 41 major cities.

Home attainability in the context of this report means median home prices which are no more than five times median annual household income and median monthly rents which are no more than 30 percent on median monthly income.

“Four years of ULI analysis paint a consistent and concerning picture: attaining affordable and adequate housing remains out of reach for far too many across our dynamic region,” said Alan Beebe, CEO, ULI Asia Pacific. “While rental markets offer a crucial lifeline, the fundamental challenge of purchasing a home persists, particularly in major economic hubs. This year’s Index reinforces that solving this requires government policy, innovative financing, embracing new construction technologies, and practical public-private partnerships focused on delivering diverse housing options at scale.”

“Home attainability remains constrained across the region, despite income growth and price dips in some markets,” said Mark Cooper, Senior Director, Thought Leadership, ULI Asia Pacific and lead author of the report. “This year’s report underscores a deepening divide, with rental housing offering significantly more relief than home purchase, and major cities becoming increasingly exclusive. Hong Kong apartments are still the second most unattainable in the region.”

10 Trends: Asia Pacific’s Housing

1. Home attainability remains constrained across the region: Only seven market segments out of 51 offered home attainability to buyers—homes priced at five times median income or less—in 2024. This is the same number as in 2023. Furthermore, no city in the report scores below four for purchase attainability. Across such a large and diverse region, a crude average of segment attainability scores for 2024 and 2023 is more or less identical (2024: 11.68, 2023:12).

2. Major cities are the most expensive: Only three market segments in major cities across the region offer homes at or less than five times median income: Singapore HDB apartments and apartments in Melbourne and Kuala Lumpur. Singapore is the only capital city to offer attainable homes for purchase.

3. Rental housing is more attainable region-wide: rental homes are considerably more attainable than for-sale properties; 41 out of 51 market segments offer rental homes at below 30% of monthly income. The more expensive segments for rental tend to be in first tier cities in both developed and developing nations, although there are exceptions, such as apartments in Tokyo’s 23 Wards, also known as Tokyo Ku, where rents are only 17% of median income.

The drivers of housing attainability remain the same. Factors affecting demand include population growth, population age profile, household formation, urbanisation, immigration, income growth, the cost and availability of financing, and transaction costs. Factors affecting supply include government provision of housing for sale or rent, the availability and cost of land, the construction materials and labour costs, and the cost and availability of financing, planning regulations, and infrastructure development.

4. Hong Kong scores worst for home attainability: Falling property prices in Hong Kong have made apartments marginally more affordable, they were 23.4 times median annual household income in 2024, compared with 26.5 times in 2022. However, Hong Kong apartments are still the second most unattainable in the region. Meanwhile, average rents are 72% of median monthly income, up from 70% in 2022 and 69% in 2023, as rents have continued to rise.

5. China price drops have boosted attainability, but provided little comfort for buyers: China has seen prices fall in major cities in recent years, but they remain above 10 times household income in all cities covered in this report and above 20 times in Beijing, Shanghai and Shenzhen. Furthermore, the prospect of prices falling further has kept buyers out of the market.

6. Interest rate cuts have boosted attainability in some markets: Lower interest rates in markets including Australia, Korea and China have made buying a home more attainable. However, the interest rate outlook for the region and the world has become more uncertain in 2025, so the cost of borrowing may remain elevated in many markets. Furthermore, lower interest rates are a double-edged sword, as they also drive higher prices.

7. Government policy leads the way: While the private sector is responsible for delivering the bulk of housing in most markets, the single biggest driver of market conditions is government legislation and regulation. This means boosting housing attainability requires public-private partnerships.

8. The Affordability-Accessibility Divide: In developed markets, homes are unattainable because they are too expensive, however in larger developing markets such as India and Indonesia, there remains a shortage of basic housing for millions of people. The Indonesian government estimates that one-third of households do not have access to adequate housing. There, a public housebuilding programme has not been able to keep pace with population growth.

9. Multifamily Housing’s Untapped Potential: The multifamily residential sector is relatively undeveloped in the Asia Pacific region (except Japan), though growing in China and Australia. This report shows that rental housing is more attainable, thus boosting supply will improve attainability. Furthermore, renting remains very affordable in many markets, with rents less than 25% of monthly income. This suggests potential for the real estate industry to deliver more rental properties and the potential for boosted returns.

There is also increasing demand for related rental residential sectors, such as senior living, co-living, and student accommodation. These could provide additional opportunities for real estate investors and developers, which may contribute to overall housing attainability.

10. Tech’s Promise: Adoption of modular construction, 3D printing, and other proptech lags in housing development but holds significant potential to reduce costs and construction times in the future.

Generational Impact

There are also particular demographics in Tier I cities with greater challenges, particularly younger people and young families. In a city such as Hong Kong, where both rents and prices are high, it is difficult for younger people to save enough to buy a home. Meanwhile, in many cities, elderly people find housing just as unattainable as their younger fellow citizens. There is clearly potential for further investigation of the housing challenges which face different generations.

ULI HAI Report 2025_Finalised_9 July.pdf

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Source: Urban Land

Housing prices post slower growth in 1st quarter

Residential property prices in the Philippines continued to increase, although at a slower pace, during the first quarter of 2025 (Q1 2025), the Bangko Sentral ng Pilipinas (BSP) reported.

Year-on-year growth of the Residential Property Price Index (RPPI) slowed to 7.6 percent in January-March from 9.8 percent in the last three months of 2024. On a quarter-on-quarter basis, prices reversed from the fourth quarter of last year’s 1.0-percent drop, growing by 2.6 percent.

The National Capital Region (NCR) led residential property price growth with a 13.9-percent increase, significantly higher than the 3.0 percent observed in the rest of the country. Quarter on quarter, the NCR saw a 9.2-percent expansion while areas outside it recorded a 2.1-percent drop.

All areas outside the NCR, with the exception of Metro Cebu, recorded higher prices. Houses in Mindanao became 7.6-percent pricer, followed by the rest of the Greater Manila Area (GMA) at 3.8 percent and other areas in the Philippines at 1.1 percent.

Metro Cebu, on the other hand, registered a 1.7-percent drop — its first annual decrease since the first quarter of 2023.

All housing categories contributed to the higher prices, with condominiums and houses recording growth rates of 10.6 percent and 4.5 percent, respectively. Houses measured include single-attached, detached, town houses, duplexes and apartments.

Quarter on quarter, condominium prices grew by 9.9 percent, offsetting a 2.9-percent drop for houses.

The median price for all housing types was P3.37 million, the BSP said, lower than the P4.34 million for condominiums but above the P2.95 million for houses.

Houses in the NCR were the most expensive with a median price of P7.7 million, while condominiums in other areas in the Philippines were the cheapest at P2.5 million.

Residential real estate loans taken out during the first quarter, meanwhile, were mostly used to purchase new housing units (73.2 percent), with the remaining 26.4 percent and 0.5 percent used to buy pre-owned and foreclosed properties.

By type of housing, 63.7 percent of the loans were used for houses and the rest for condominiums.

Just over a fourth, or 27.4 percent, of the property loans were granted in the NCR. Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) accounted for 29.9 percent; Central Luzon, 13.8 percent, Central Visayas, 9.6 percent; Western Visayas, 7.9 percent; Davao, 4.5 percent; and Northern Mindanao (2.5 percent).

The NCR and these six regions accounted for 95.6 percent of housing loans granted by banks, the BSP said.

The RPPI calculates the average change in prices of different kinds of housing units over time from bank data on loans made to purchase residential properties.

The quarterly index, beginning the first quarter of 2025, now uses a different methodology to align with international best practices and has been renamed from the Residential Real Estate Price Index. Among others, it now uses acquisition cost instead of appraised value, and the property type has been expanded to include pre-owned and foreclosed units instead of just new ones.

Instead of just the NCR and areas outside it, the latter has further been divided into balance GMA, Metro Cebu, Metro Mindanao and other areas in the Philippines.

Source: Manila Times

OFW remittances, rate cuts may lift housing demand

Metro Manila's residential market is projected to see tempered launches of mid-income condominiums over the next three years, although anticipated interest rate cuts and steady inflows of remittances from overseas Filipino workers (OFWs) could help support demand for the segment, according to Colliers Philippines.

“Colliers is optimistic that further interest rate cuts and sustained remittances from Filipinos working abroad should partly lift the demand for mid-income projects,” Colliers said in its First Quarter Metro Manila Residential Report.

Pre-selling launches in the first quarter reached around 5,300 units, marking the highest quarterly level since the third quarter of 2023, Colliers said.

Among the notable projects launched during the period were Avida Land’s Avida Towers Makati Southpoint Tower 3 in Makati; 8990 Holdings, Inc.’s Urban Deca Tondo – Bldg. 7 in Tondo; and Shang Robinsons Properties’ Haraya Residences – North Residences in Bridgetowne, Pasig.

Despite the higher volume of launches, net take-up reached only 87 pre-selling units during the period, Colliers said.

Total back-outs, particularly for older developments, rose to 4,700 units in the first quarter, with the lower and upper mid-income segments accounting for 65% of the total.

Colliers said the central bank’s monetary easing, along with continued OFW remittance inflows, is likely to support a recovery in residential demand.

The Bangko Sentral ng Pilipinas (BSP) cut its policy rate by 25 basis points to 5.5% in April.

BSP Governor Eli M. Remolona, Jr. said the Monetary Board is open to two more rate cuts this year, with one possibly as early as June.

Cash remittances rose by 2.7% in the first quarter, based on BSP data.

“Lower interest rates should result in lower mortgage rates, and this should guide developers with their promos and payment schemes,” Colliers said.

In response, developers are advised to offer more flexible and curated payment terms for ready-for-occupancy (RFO) units, including leasing and early move-in promotions, it added.

Colliers also noted that developers must assess optimal product types and price points when expanding in key locations.

Upscale to luxury projects continue to perform well in central business districts such as Fort Bonifacio, the Makati Central Business District, and the Bay Area.

Meanwhile, mid-income projects remain more attractive in fringe locations such as Alabang–Las Piñas, Manila North, Makati Fringe, Mandaluyong, and the Caloocan–Malabon–Navotas–Valenzuela (CAMANAVA) corridor.

The residential vacancy rate in Metro Manila is expected to reach an all-time high of 26% in 2025, driven by the complete exit of Philippine offshore gaming operators (POGOs) and the scheduled completion of new condominium developments.

Colliers expects pre-selling launches to remain subdued in the near term.

From 2025 to 2027, new supply in Metro Manila is projected to average 5,800 units annually, down significantly from the 13,000-unit yearly average recorded from 2017 to 2019, during the peak of POGO-driven demand.

Despite the projected slowdown, Colliers said it is “not all doom and gloom” for the Metro Manila residential market.

“Recovery will focus around launching the ideal residential product at the right location with a viable price and favorable terms,” it said.

Source: Business World