Rebecca Foster | Feb 15, 2013 | Comments 0
Indonesia's capital city Jakarta outperformed all other markets monitored by Jones Lang LaSalle in 2012
A steady final quarter marked the end of what was a fairly stable year in Asia's luxury residential real estate market, according to data released by property management firm Jones Lang LaSalle. The outlook for 2013 is similarly neutral as the effects of cooling measures in the region kick in.
Capital values grew an aggregated five percent in 2012 up from 4.8 percent in 2011. Out of nine luxury residential markets featured in Jones Lang LaSalle's Residential Index, six saw slight increases in capital values during 2012.
However, declines were recorded in Singapore as capital values fell 5.6 percent year-on year. Shanghai registered a 0.5 percent drop in capital values year-on-year.
Jakarta outperformed all markets monitored by Jones Lang LaSalle with growth rates of 27.5 percent on an annualised basis.
"Steady sales activity and limited price growth in the short term is to be expected in 2013. Policy restrictions in markets such as Hong Kong, Singapore and China will constrain growth. Despite this, Hong Kong's capital values are expected to see a mild rise in 2013 supported by ongoing low interest rates," said Jane Murray, head of research for Asia Pacific at Jones Lang LaSalle.
"Capital values in Shanghai should also rise marginally this year, while prices in Beijing are likely to increase further on the back of stronger rental growth. Among the emerging SEA markets, Jakarta should continue to outperform in 2013 due to strong underlying fundamentals," continued Murray.
"Prices in the luxury condominium residential market in Singapore have eased slightly over the past year as a result of cooling measures which have reduced the number of buyers," said Chris Fossik, managing director for Jones Lang LaSalle in Singapore and South East Asia.
"While the cooling measures will remain in place, it is unlikely that prices will rise. The medium to longer term outlook for the luxury condominium market however looks good as Singapore's economy and population is expected to grow," added Fossick.
Filed Under: Asia (General) • News • News by Country
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