Saturday, August 18, 2012

Luxury residential prices in Asia paint mixed picture

SINGAPORE: High-end residential prices have registered a mixed performance across Asia.

According to Jones Lang LaSalle Q2 2012 Residential Index, cities such as Jakarta and Manila registered double-digit increases of 19.2 per cent and 10.5 per cent respectively in the 12 months to the end of the second quarter.

Hong Kong, Singapore, Shanghai and Beijing on the other hand, saw annual declines of up to 8 per cent.

Quarter-on-quarter, Singapore prices dipped 2.9 per cent, due to ongoing rental declines and property cooling measures.

Hong Kong edged up 2.0 per cent during the quarter, due to more active mortgage lending by banks and improved market sentiment.

In China, Shanghai prices increased 0.3 per cent for the quarter, while prices in Beijing fell 2.7 per cent due to tightening policies and price discounts by developers.

Across the board, average capital values for luxury residential markets in Asia remained largely stable, with an increase of 0.8 per cent quarter-on-quarter in Q2.

This is similar to the 1.1 per cent quarter-on-quarter increase in the previous quarter.

Looking onward, Jones Lang La Salle expects tepid growth in China, Singapore and Hong Kong. 

Dr Jane Murray, head of Research, Asia Pacific, Jones Lang LaSalle said: "Prices in China are expected to soften further in the second half of 2012 with policy restrictions likely to remain in place, although tight supply in prime locations will likely limit price discounts by developers. 

"Rental correction, governmental policies and generally weaker investor sentiment should underpin further price declines in Singapore in the second half of 2012. On the other hand, Hong Kong prices are expected to stay relatively flat in the last half of 2012 because of tight supply and low holding costs."

- CNA/cc

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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