Tag Archives: Knight Frank

Private home prices will not decline in Q3, says Knight Frank

A total of 8,247 new private residential units were launched by developers from January to May this year. Of these, a total of 8,368 units (excluding executive condominiums) were sold, according to Knight Frank’s latest Residential Bulletin.

In Core Central Region (CCR), prices of high-end non-landed properties fell 0.2 percent in Q2 compared to Q1’s increase of 0.6 percent. However, the sales proportion in RCR rose by 14.3 percent in Q3 2012, 22.7 percent in Q4 2012 and 24.9 percent in Q1 2013.

In addition, property prices in Outside Central Region (OCR) set a new benchmark as it rose 0.3 percent in Q2. Notably, private home prices in Singapore rose 0.8 percent quarter-on-quarter and 3.9 percent year-on-year in Q2, or the highest increase since Q4 2011, based on flash estimates from the URA.

Meanwhile, average rents of high-end and mid-market homes declined by 1.8 percent and 0.2 percent to S$5.79 psf and S$5.12 psf per month, respectively, in Q2. Rents of mass market homes slightly inched up by 0.1 percent on average to S$3.34 per sq ft a month.

Sales volume of new sale and resale private residential properties will likely decline by 10 percent to 15 percent in Q3, due to “the existing property cooling measures and the latest MAS ruling on debt servicing framework that was announced on 28 June 2013.”

However, Knight Frank noted that overall prices are not expected “to decline at least for Q3 2013, as long as the housing market is supported by genuine demand from local buyers in particular first-time home buyers with no major existing loans, and should low interest rates continue to prevail in the near term.”

Source – PropertyGuru – 5 Jul 2013

Top 5 hot markets in Asia

The overall value of prime property in the world’s key cities fell 0.4 percent in the first quarter of 2012, according to a report from Knight Frank due to global economic woes and the implementation of cooling measures in key markets. In Asia, only two cities beat the trend with Jakarta experiencing 14. percent price growth in the 12 month period between March 2011 to March 2012, while Beijing saw prices increase by 2.9 percent in the same period.

If we look back five years however, the picture is dramatically different. Here are the top performing Asian markets based on a five-year change in the Global House Price Index as devised by Knight Frank Research by setting the index at 100 in the fourth quarter of 2007.

Hong Kong saw the biggest increase in the index at 164 in the first quarter of 2012 due to its role as a global economic centre and gateway to China.

India saw the second largest increase, to 159, fuelled by strong demand both from the domestic and foreign markets.

China, unsurprisingly came in on a third place, its index rising around 50 percent to 150. The increase is highly attributed to China’s rise as a global economic powerhouse in terms of trade, commerce and the staggering production of newly-minted millionaires.

Taiwan and Malaysia came in on a shared fourth place in the fourth quarter of 2011 since first quarter results for Malaysia were unavailable. Having both seen their indexes rise to around 124 in the fourth quarter of 2011, it is likely that Taiwan may have overridden Malaysia due to pre-election jittery in the latter market.

Taiwan and Malaysia came in on a shared fourth place in the fourth quarter of 2011 since first quarter results for Malaysia were unavailable. Having both seen their indexes rise to around 124 in the fourth quarter of 2011, it is likely that Taiwan may have overridden Malaysia due to pre-election jittery in the latter market.

Source: PropertyReport – 2012 Jul 19