Luxury property in asia has “steady start” to 2013
Average capital values grew across seven of the nine luxury residential markets monitored in Jones Lang Lasalle’s Residential Index, the firm announced. On average across all nine markets, prices jumped 2.2 percent from the fourth quarter of 2012 and 6.1 percent compared to the same period 12 months ago.
Indonesia led the increase, outperforming the other markets with prices in Jakarta rising 8.7 percent from Q4 2012 to leave them 32.9 per cent above one year ago. Prices in Kuala Lumpur (6.0 percent q-o-q) and Beijing (2.4 percent q-o-q) also rose solidly.
Hong Kong and Singapore were the only luxury property markets to see a decline in values (1.1 percent q-o-q and 0.6 percent q-o-q respectively) as the government’s tightening measures came into effect.
Joseph Tsang, Managing Director for Jones Lang Lasalle in Hong Kong commented: “Unfortunately, with the current government continuing to adopt a heavy-handed approach in setting policy, volumes and prices are likely remain under downward pressure over the short term.”
Discussing the outlook for the rest of the year, Dr Jane Murray, Head of Research, Asia Pacific, Jones Lang Lasalle said: “In aggregate, the regional economy continues to outpace the rest of the world by a significant margin. The emerging Southeast Asian economies should continue to outperform this year, and across the monitored residential markets Jakarta is expected to lead price growth, supported by continued investor interest. However, policy restrictions in some markets will continue to limit price growth for the rest of the year, particularly in Hong Kong, China and Singapore. We expect high-end capital values in Hong Kong to fall by five to 10 percent over the remainder of the year, and to decline by up to five percent in Singapore. In mainland China, prices in Beijing are likely to continue to rise steadily throughout 2013, on the back of stronger rental growth, whilst we expect Shanghai prices to rise only marginally over the rest of the year.”