How much it cost to buy real estate in Sydney, Seoul, Singapore, Taipei

Asia Pacific property prices are rising – in some cases by as much as 37%.

Home buyers are taking advantage of the ongoing pandemic-induced impetus, while international investors are looking for a place to put their money.

To get a better picture of real estate price developments, CNBC compared the average sales prices of one-, two-, three- and four-bedroom properties in four major Asia-Pacific cities: Singapore, Seoul, Sydney and Taipei.

The results are based on a combination of data from governments and local property locations.

In the case of Seoul, the capital of South Korea, where properties are measured in the local unit “Pyeong”, prices have been converted according to their comparable bedroom number.

For comparison, the nationwide average price for real estate in the US for active listings was $ 385,000 in July 2021, 10.3% more than the previous year, according to data from realtor.com.

The four cities are each separate international business centers, and Singapore was the most expensive city to rent compared to Seoul, Sydney and Taipei.

Here’s a snapshot of property prices in the four cities, according to CNBC’s assessment.

Singapore

Singapore – the Asian financial hub known for its towering skyscrapers and high cost of living – has emerged as the most expensive place to buy real estate, according to CNBC research on the four major Asia-Pacific cities.

One- and two-bedroom properties in the city-states’ affluent central district cost around $ 1.03 million, according to average sales price data collected by property website PropertyGuru from January through July 2021.

Three to four bedroom properties came in at $ 2.5 million over the same period.

Skyscrapers line the skyline in central Singapore.

PropertyGuru

The prices for one- and two-room apartments remained relatively stable until July. However, three-bedroom properties have seen a “significant surge,” with prices rising over 5% annually – especially in more desirable neighborhoods like Alexandra, Commonwealth, Chinatown, and Tanjong Pagar.

The centrality of such locations, combined with more space for remote work arrangements, have made triple rooms a “cheaper option,” Tee Khoon Tan, PropertyGuru’s Singapore country manager, told CNBC via email.

Space is no longer a luxury, but a necessity.

Khoon Tan tea

Singapore Country Manager, PropertyGuru

“Space is no longer a luxury, but a necessity,” he said. “As such, home buyers may find typical one- or two-bed houses too dainty. Coupled with the higher square-meter prices of one or two-bed houses … triple rooms have become a cheaper option over the rest.”

The same is not true of four-bedroom properties, where prices remained constant – and in some cases even declined – over the year as sellers sought to attract higher-value buyers.

Seoul, South Korea

South Korea’s vibrant capital, Seoul, ranks just behind Singapore as one of the most expensive cities in the Asia-Pacific region to buy real estate, a study by CNBC found.

The East Asian city has long been known for sky-high property prices and this year was no different.

The Han River flows through the heart of the South Korean capital, Seoul.

Sungjin Kim | Moment | Getty Images

According to data from South Korean real estate app Zigbang, one- and two-bedroom properties of up to 99 square meters in the affluent central residential district of Gangnam in Seoul averaged $ 855,000 in July 2021.

Three to four bedroom properties ranging in size from 99 to 165 square feet came in around $ 1.8 million.

As in Singapore, price growth in South Korea was less dramatic for smaller properties. From January to June of this year, the number of embedding machines with an area of ​​less than 66 square meters increased by 5%.

Studio-style “officetels” – or buildings that combine residential and commercial properties and are popular with individual users – rose by 8%. Larger properties, on the other hand, grew by an average of 31% annually, with the prices of the largest properties rising the most.

I think the market is at a turning point. However, I don’t see any price drop within this year.

Young-jin Han

Head of Big Data, Zigbang

Young-jin Ham, head of big data at Zigbang, said the sustained rise in property prices had a lot to do with low interest rates, which resulted in people looking for more bang for their buck, as well as “sufficient liquidity and a lack of alternatives.” Investment goals. “

Last week, the South Korean central bank raised interest rates, making it the first developed economy in the era of the pandemic. That might cool a hot real estate market, but Ham said he doesn’t see any price cuts anytime soon.

“I think the market is at a turning point,” said Ham. “However, I do not see any price decline this year. I forecast the upward trend to continue this year.”

Sydney, Australia

Australia’s coastal city of Sydney is home to some of the country’s most expensive real estate, despite being cheaper than other regional hotspots.

One to two bedroom properties in the greater Sydney area averaged $ 574,246 in June 2021, according to data from online real estate website Domain.

Three and four bedroom properties were priced at an average price of $ 914,969.

Eastern suburbs of Sydney city around the harbor in aerial view with soft morning light and blue skies.

Tedder | iStock | Getty Images

In the first half of 2021, house prices for one- and two-room apartments rose by a modest 3%, while prices for three-room apartments rose by around 8%.

The price increases for houses were, however, much more drastic in the same period and rose between 15% for two-bed houses and 27% for four-bed houses. Interestingly, four-bedroom units saw the largest price increase overall, rising 37% annually.

Domain research and business chief Nicola Powell said these sales figures reflect a small portion of the market in prime locations, with most of the growth continuing to come from home sales.

“This reflects the change in buyer preferences as space requirements become a greater priority,” said Powell. “It also reflects a rebound in home prices as investors have largely sat on the sidelines over the past year and have only become more active in recent months.”

Taipei, Taiwan

Taiwan’s capital, Taipei, turned out to be the cheapest city in the Asia-Pacific region among those measured by CNBC.

One to two bedroom properties in the city cost an average of $ 473,500, according to June 2021 data compiled by global real estate agent Savills.

Three and four bedroom homes had a median of $ 977,000.

Skyscrapers stretch across the Taiwanese capital, Taipei.

Ratima Sritangwong | EyeEm | Getty Images

Real estate prices have increased by around 4.5% year-on-year. Most popular, however, were newer properties, the prices of which rose by 10.4%, more than twice as much.

Low interest rates, pandemic incentives and trade tensions between the US and China that drove tech companies to move to Taiwan have created a perfect storm for the capital’s property prices, said Erin Ting, research director at Savills. She said she didn’t expect the trend to weaken anytime soon.

“Even though the average price wasn’t announced in July, I think the price will continue to rise,” said Ting.

– CNBC’s Chery Kang contributed to this report.