Prices of luxury overseas homes in Asia on the rise
A new report has found that the average price of luxury residential property in Asia rose in the first quarter of 2012. The Jones Lang LaSalle index showed that prices in eight main Asia Pacific markets were up 1 per cent on the final quarter of 2011.
Keep reading to learn more about the Asian luxury homes market.
Varying fortunes for Asia’s main property markets
The first three months of 2012 saw prices of high end residential property rise in Jakarta, Bangkok, Kuala Lumpur and Hong Kong. Prices of property in Jakarta rose by around 16 per cent in the last twelve months including a 4.3 per cent rise in the last quarter alone.
Todd Lauchlan, country head for Jones Lang LaSalle Indonesia, said: “The first quarter increase is a continuation of a trend we have witnessed over the last 18 to 24 months in the Indonesian residential market, where price increases have been consistently pushed through by developers on the strength of robust demand levels.”
Luxury residential prices in Hong Kong were up 1.4 per cent quarter on quarter, with Property Wire attributing this rise to ‘low interest rates and more active mortgage lending by banks.’ Kuala Lumpur saw high end capital values up by 6.9 per cent in the first quarter.
However, some Asian areas saw price falls over the same period. Average prices in Singapore’s luxury prime market declined by 2 per cent quarter on quarter while average prices in Beijing fell by 2.3 per cent.
Jane Murray, head of research for Asia Pacific, said that prices in China are expected to decline further over the next year. And, prices in Hong Kong and Singapore are also expected to decline over 2012, with Property Wire reporting that this would be ‘as a result of projected rental correction, generally weaker investor sentiment as well as policy risks.’
She said: “Among emerging South East Asian markets, the Jakarta sales market should see the strongest price growth on the back of a strong economy while prices in Kuala Lumpur and Bangkok should be largely stable.”