Report: KL high-end residential prices rose one per cent in Q1 2012
OPTIMISM: Prices of high-end residences in parts of Asia Pacific rose despite an overall slowing property market
Average high end residential prices in eight key markets in Asia Pacific rose by one per cent in Q1 compared with Q4 of 2011, according to Jones Lang LaSalle’s latest Residential
Index. Hong Kong, Bangkok, Kuala Lumpur and Jakarta showed increases in Q1 while Beijing, Shanghai and Singapore showed declines.
Kuala Lumpur saw high end capital values up by 6.9 per cent in Q1, due to some additions to its stock (capital values would have been largely stable ignoring the change to stock), according to Dr Jane Murray, Head of Research, Asia Pacific, Jones Lang LaSalle. “Prices in Kuala Lumpur and Bangkok should be largely stable in 2012.”
She added that prices in China are expected to decline further over the next 12 months, as policy restrictions are likely to remain in place and developers are likely to introduce more price discounts. “Prices in Hong Kong and Singapore are also expected to decline over 2012, as a result of projected rental correction, generally weaker investor sentiment as well as policy risks. That said, the extent of price correction in Hong Kong will likely be limited by the tight supply situation. Among emerging South East Asian markets, the Jakarta sales market should see the strongest price growth on the back of a strong economy.”
Jakarta delivered the strongest price performance among the monitored markets, with growth of about 16 per cent.
Todd Lauchlan, Country Head, Jones Lang LaSalle Indonesia said: “The first quarter increase is a continuation of a trend we have witnessed over the last 18-24 months in the Indonesian residential market, where price increases have been consistently pushed through by developers on the strength of robust demand levels. Demand is being driven
by increased affordability, record low interest rates, high consumer confidence levels and strong income growth.”
Meanwhile, average prices in Singapore’s luxury prime market declined by 2 per cent quarter on quarter after remaining stable for six consecutive quarters on the back of on-going rental adjustment.
Capital values for luxury apartments in Shanghai fell by 1.2 per cent quarter on quarter, while average prices in Beijing fell by 2.3 per cent, as tightening policies remain in place and sales volumes are down in the China Tier I markets.