Beijing and Hong Kong’s markets staying strongResidential property in Beijing and Hong Kong is continuing to see high demand, according to a recent Jones Lang LaSalle Asia Pacific Property Digest.
Beijing has seen a quarterly increase in serviced apartment rents, and high end apartment prices, rising 2.8% and 7.4% respectively. This is due to developers raising asking prices and reducing incentives, following the good performance throughout 2012.
New projects such as The Imperial Mansion and Beijing Marriott Executive Apartments are likely to benefit from the strong demand in the final quarter of the year.
The report predicts that the number of high-end apartment sales this year will overtake those in 2011.
Similarly, in Hong Kong, capital value has been ever-growing despite a 6% quarterly decline in sales.
According to the report, the recent cooling measures have had little impact on the luxury segment of the market;
“The short term measures only consist of about 1,830 subsidised units spread over the next two years and the longer term land supply will take time to complete,” says the report.
Of the luxury market, just 75 properties worth over $50 million were sold – down by 50.7% quarter-on-quarter, but still an annual increase of 25%.
The report supports this, suggesting that “transaction volumes are expected to stay at low levels, since owners will be less likely to sell because of the potential inability to re-enter the market due to the higher entry costs.”
However, they predict that luxury property prices will continue to grow – by 5-10% this year, and between single digits in 2013.