Bangkok, Ho Chi Minh, Jakarta, Manila

Singapore and Hong Kong are generally considered Asia’s more vibrant real estate markets. But some up-and-coming cities are giving these traditional hubs a run for their money, with some even beating them on rental yields.

Among the known, established property markets, Hong Kong was the only one to make it to the top five in a list dominated by lesser-known cities, according to a recent report by realty services firm JLL.

“We remain bullish longer-term on more established markets like Hong Kong, but primarily we see more conspicuous rental growth in some of the region’s more developing markets including Ho Chi Minh City, Jakarta, Bangkok and Manila,” JLL Asia-Pacific Chief Research Officer Roddy Allan told CNBC Make It.

While rents in Asia-Pacific were largely stable in the first quarter of 2024, “supported by resilient leasing demand for high-quality properties and as return-to office rates and expatriate arrivals improved,” certain cities saw sharp growth, according to the JLL report.

The following four cities have led the recovery in rental growth in Asia so far this year:

Residential rental growth in Q1 2024 (y/y): +18.1%

Average price to rent: THB 8,292 (about $226) per square meter annually

“Rental demand has been surging in Bangkok,” Allan said. “Much of the rental gains have been led by the luxury condo sector, but more broadly, rental demand for apartments has skyrocketed due to the prevailing rates environment and the return of tourism and expats to Bangkok,” he told CNBC.

“Inflated” selling prices, household debts and strong interest rates, have stoked the demand for rentals, according to the report.

By the end of 2024, a total of 2,800 units from 12 projects are set to be added to Bangkok’s market, which is expected to fuel rent growth even further, the report said.

Residential rental growth in Q1 2024 (y/y): +5.9%

Average price to rent: $120 psm annually

“Vietnam’s largest city, Ho Chi Minh City, was also one of the region’s [best] performing markets from a residential perspective,” according to Allan. Rents in the city grew 5.9% on a year-on-year basis in the first quarter of 2024.

This rental growth has been influenced by the stronger rent prices recorded in new high-quality offerings in the city, according to the report.

“We also see new supply coming online in the lower-price segment and ongoing rates pressures will help demand,” said Allan.

Residential rental growth in Q1 2024 (y/y): +4.8%

Average price to rent: IDR 3,214,555 (about $200) psm annually

In Jakarta, sales of condominiums have been quite slow for the past three years and, in 2024, the presidential election has been a contributing factor to the limited sales, according to the report.

Despite the sales slowdown, demand for renting “remains robust” in the city,…