1 / 2 Manila beats Boston, Paris, Tokyo as world’s hottest luxury home market Manila is the hottest luxury home market in the world, beating out the likes of Boston, Tokyo and Paris, property consultancy Knight Frank said. Luxury prices shot up 11 per cent in 2018, as the capital city of the Philippines got a boost from a robust economy, shortage of luxury homes and increased appetite for them by wealthy foreigners living there. The ranking of 100 cities is based solely on how much their luxury home prices increased last year. The only other Asian city in the top 10 list was Singapore, where prices jumped 9.1 per cent. Tokyo came in 11th, rising by 6.
8 per cent; Paris, 19th, up by 5.3 per cent, and London, 91st, down by 4.
4 per cent. Beijing was tied for 25th place and was up by 4 per cent and ranked the highest among mainland China cities. Hong Kong was tied for 47th place, up by 1.8 per cent. Luxury property is defined as the top 5 per cent of each market by value. Mainland renters outpace Western tenants as biggest spenders for luxury rental homes in Hong Kong Ten US cities made the top 100 list.
Boston came in first among US cities, in 8th place, with an 8.6 per cent gain, and San Francisco ranked 10th, with a 7.
8 per cent rise. Knight Frank cited Manila’s annual GDP of 6 per cent last year as one of the factors that “motivated some expatriates to grab a slice of real estate back home.” The annual report aims to signal market opportunities to the consultancy’s clients. But even though Manila topped the list, its percentage rise was still considerably lower than previous top-performing markets, which grew by at least 21 per cent, Knight Frank said.
The slower growth in luxury home prices was attributed to the end of the ultra-low interest rates era that began boosting real estate markets globally in 2008.
“While Manila’s 11 per cent growth is far from the norm for the city, it confirms the theory that outliers are disappearing, and we are moving to a period of slower price growth. Within Asia-Pacific, a slowdown from a 4.9 per cent average growth rate in 2017 to 2.7 per cent in 2018 illustrates this trend,” said Nicholas Holt, Knight Frank Asia-Pacific head of research. Philippine developers have been focusing on more affordable housing, where demand is deemed larger. “There are only four luxury residential projects in the pre-selling stage. Target completions are within the next five years,” said Jan Paul Custodio, senior director for research and consultancy at Santos Knight Frank.
“Of the 700 units of luxury residential apartments floated, 93 per cent have already been absorbed as of 2018. Post-selling luxury projects, on the other hand, are 95 per cent sold, with less than 15 units available,” he added.
In 2018, Manila’s luxury homes market drew 6.5 billion pesos (US$125.
1 million) in investments, down 35 per cent from 10 billion pesos in 2017. “(The) decline is mainly attributed to the limited remaining inventory in the market,” Custodio said. In late January, a new luxury project with 180 prime residential units broke ground, adding supply to the market. Makati, the premier business district, and neighbouring Bonifacio Global City, corner Manila’s luxury market.
The Estate Makati, a joint project of firms owned by the Philippines’ two wealthiest families, is expected to command higher prices. “The price increase was largest in Makati, where less than 1 per cent of floated inventory remains unsold,” Custodio said. Demand, he said, is mainly coming from expatriates and high net worth locals. Story continues On average, the 100 luxury residential markets tracked by Knight Frank’s index rose 1.3 per cent in 2018, down from 2.1 per cent in 2017 and the index’s lowest rate of annual growth since 2012.
Knight Frank said as markets wind down from low interest rates, lower price growth in real estate is inevitable. Property consultancy CBRE said the Philippines positive economic story, whose economy has been rising by at least 6 per cent for 15 consecutive quarters now and is one of the fastest growing in the region, makes it an attractive investment site. “In particular, the government’s clear strategy and plans for infrastructure development in the city has given business confidence a huge boost,” said Desmond Sim, head of CBRE research, Southeast Asia. “The Philippines is increasingly on the radar of mainland Chinese investors including high net worth individuals and corporate entities. With the continued pivot of Philippines toward China, we expect this group of foreign investors to grow in presence. “Anecdotal data indicates that most of these buyers committed to their properties at developers’ road shows abroad. This new source of demand is expected to shore up prices of condominiums across the mid to high-end market segments,” Sim said.
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Lyft IPO — What to know in markets Friday
Lyft takes centerstage on Friday. The ride-sharing company is gearing up to have the biggest tech IPO in two years, at least until rival Uber hits the market. On Thursday evening, Lyft priced its stock at $72 per share , valuing the company at over $20 billion. The stock will debut Friday morning on the…
Lyft takes centerstage on Friday.
The ride-sharing company is gearing up to have the biggest tech IPO in two years, at least until rival Uber hits the market. On Thursday evening, Lyft priced its stock at $72 per share , valuing the company at over $20 billion. The stock will debut Friday morning on the Nasdaq under the ticker LYFT.
And some Wall Street analysts have initiated coverage of the stock ahead of the highly-anticipated IPO.
DA Davidson was the first to get bulled up on Lyft. On March 19, the firm initiated Lyft as a Buy and slapped a $75 price target on the stock.
Analyst Tom White argued, “LYFT is the #2 player in U.
S. ridesharing, but has grown its market share from 22% to 39% in the past two years. LYFT has benefited from PR/management/operational stumbles at its largest competitor, but is deftly maximizing the benefits by aggressively differentiating its brand/mission around socially-conscious values and corporate responsibility. This is good PR, but also good for business.”
Then on Thursday, Wedbush initiated Lyft as Neutral with an $80 price target. “The brand loyalty of Lyft has been quite impressive as the company continues to attract drivers and riders with its brand associated with corporate responsibility and social values, an impressive formula to go after the $1.2 trillion market spent annually in the US,” analyst Dan Ives wrote in a note to clients.
Heidi Chung is a reporter at Yahoo Finance.
Follow her on Twitter: @heidi_chung .
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Hong Kong has licensed its first three digital banks — and tech giants may lose out (TCEHY, HSBC, BACHY, BABA, ACN, GS)
Mekebeb Tesfaye 0m This is an excerpt from a story delivered exclusively to Business Insider Intelligence Fintech Briefing subscribers. To receive the full story plus other insights each morning, click here . The Hong Kong Monetary Authority (HKMA), the territory’s de facto central bank, has granted the first set of its long-awaited digital-only banking licenses,…
Mekebeb Tesfaye 0m This is an excerpt from a story delivered exclusively to Business Insider Intelligence Fintech Briefing subscribers. To receive the full story plus other insights each morning, click here . The Hong Kong Monetary Authority (HKMA), the territory’s de facto central bank, has granted the first set of its long-awaited digital-only banking licenses, reports Bloomberg. Business Insider Intelligence The first batch of approvals has been given to firms that have partnered with Standard Chartered, Bank of China Hong Kong, and Chinese digital insurance firm ZhongAn, and the firms intend to begin operating within nine months. Although at least two of the joint ventures — with Standard Chartered and ZhongAn, respectively — had been expected to receive approval, the decision not to award licenses to Chinese tech giants Tencent and Alibaba affiliate Ant Financial has surprised many observers, per the Financial Times. Here’s what it means: The licenses should ignite competition by giving holders access to a hugely profitable banking market where consumers continue to be frustrated by their options.
Hong Kong’s banking sector is heavily dominated by a handful of incumbents.
The four largest lenders — HSBC, Bank of China, Hang Seng Bank, and Standard Chartered — account for 66% of retail banking loans and 77% of mortgages, per Bloomberg citing Goldman Sachs. And their share of the market is lucrative: For example, two-thirds of HSBC’s global profits last year came from its retail and wealth management operations in the territory, reports Reuters. However, the new licenses are anticipated to put up to 30% or $15 billion of Hong Kong’s total banking revenues up for grabs — threatening the big four’s entrenched position. Hong Kong registers among the lowest rates of customer satisfaction for a developed economy due to a lack of banking competition. Only 59% of consumers in Hong Kong say they like their bank, compared with 62% of global consumers and the 74% who say the same in the US. Further, less than half (43%) of bank customers in Hong Kong say they have a positive experience when visiting a bank branch, compared with the 57% of global consumers who say the same; and it’s significantly less than the 74% of US customers who report having a positive experience, per an Accenture survey seen by Business Insider Intelligence. Increased competition ushered in by the new license holders should force the old guard to up their game and ultimately improve these customer satisfaction numbers.
The bigger picture: Hong Kong’s efforts to remedy financial services competition and customer satisfaction may hurt established players, but it could also further entrench the position of some.
Although Hong Kong’s big four could be the biggest losers, the likes of Standard Chartered appear to be getting ahead of the curve. The chronic dissatisfaction of the territory’s digitally savvy consumers is a boon for the newly licensed firms, giving them an opportunity to scoop up customers at pace: 68% of customers use digital channels to check their bank accounts at least once a week, per Accenture. Moreover, while the likes of Ant Financial and Tencent haven’t yet received approval, their potential entry into the market could give the old guard a run for their money. However, the fact that Standard Chartered and Bank of China are among the players to be permitted first suggests established players are already in front of the trend. Given their vast resources and existing reach, the newly approved licensing could be an opportunity to maintain the status quo. So, while the licensing is generally good news for consumers, its business impacts for established and new entrants remain to be seen.
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Here comes Lyft… (LYFT)
John Sciulli/Getty Images for Lyft Lyft , the first ride-hailing company to hit the public market, began trading Friday on the Nasdaq stock exchange. Its shares opened at $87.24, jumping 21% from the $72 where they priced Thursday evening. That brought its valuation to just over $29 billion. Lyft shares gave back some gains in…
John Sciulli/Getty Images for Lyft
Lyft , the first ride-hailing company to hit the public market, began trading Friday on the Nasdaq stock exchange. Its shares opened at $87.24, jumping 21% from the $72 where they priced Thursday evening. That brought its valuation to just over $29 billion.
Lyft shares gave back some gains in the afternoon, but the company still carries a market value of roughly $27 billion. Several Wall Street analysts are already bullish on the world’s second-largest ride-share company.
Watch Lyft trade live .
Lyft , the first ride-hailing company to launch on a US public market, began trading Friday morning under the ticker ” LYFT .” Shares jumped 21% to $87.24 apiece as they opened, bringing the valuation to just over $29 billion.
The company priced its initial public offering at $72 per share the evening prior, at the upper-end of its expected range.
But the newly minted stock’s rally was fading by midday, as shares had given up around half of their opening gains by 1 P.
Lyft was trading just above $81 a share, below where they’d opened earlier in the session.
Lyft’s offering raised about $2.69 billion, which it plans to spend on “working capital, operating expenses, and capital expenditures,” as well as acquiring or investing in businesses, according to its S-1 filing with the Securities and Exchange and Commission.
While potential investors will have a chance to buy into one of the largest US-listed technology IPOs in recent years, one thing they won’t have is equal say in how the company is run.
That’s because Lyft will have a dual-class structure consisting of Class A and Class B shares. That means outside investors of the former are entitled to one vote per share while shareholders in the latter are entitled to 20 votes per share.
Investor appetite for Lyft’s publicly traded shares was strong heading into Friday’s debut despite the company providing no clear timeline for reaching profitability .
Lyft earlier this week raised its expected IPO range from between $62 and $68 a share to $70 to $72 after its offering was oversubscribed . In other words, demand for its IPO exceeded the number of shares issued.
Read more: READY FOR LYFT OFF: Lyft to IPO today at whopping $21 billion valuation
In the race to go public during what’s expected to be a banner year for high-profile IPOs — with Airbnb, Slack, and Peloton all expected to debut — Lyft is set to beat out rival Uber to the public markets.
“In our opinion while Lyft has clearly benefited from some of the negative PR issues that Uber faced in 2017/early 2018, going forward the battle for market share will be a bit more balanced,” Wedbush analyst Dan Ives said in a note to clients earlier this week.
Ives initiated coverage with a “neutral” investment rating and a 12-month price target of $80.
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