Prices of luxury homes in eight key Asian markets are expected to slide further this year as the impact of new government cooling measures become more visible.
In the latest Asia Pacific Residential Index by property consultancy firm Jones Lang LaSalle, prices of high-end homes in Hong Kong fell the most – dropping by 3.3 per cent in the fourth quarter – while those in Shanghai declined by 0.5 per cent from the third quarter.
But prices of luxury homes in Beijing increased slightly by 0.2 per cent.
“We expect a multi-speed luxury residential market in the Asia Pacific region in 2012. We think prices in China will soften further, though developers are likely to introduce only moderate price discounts due to limited supply in prime locations,” said Jane Murray , head of Asia Pacific Research at Jones Lang LaSalle.
Overall, high-end residential properties in Jakarta recorded the biggest on-quarter price increase of 3.7 per cent.
That is a contrast to the moderate price increases in Bangkok (0.9 per cent) and Mumbai (0.4 per cent).
Meanwhile, average of prices of luxury homes in Singapore and Kuala Lumpur remained stable.
“With the new set of government measures in place, we can certainly expect the Residential Price Index to see some correction in 2012, especially for the luxury end market. In contrast, mass market projects, given the support from local buyers, could see some price moderation but to a lesser degree,” said Dr Yang Liang Chua, head of research for Singapore and South East Asia at Jones Lang LaSalle.
The index includes luxury residences like apartments, condominiums, detached and semi-detached housing located in prime areas.
Source: http://www.channelnewsasia.com/stories/economicnews/view/1180386/1/.html