Tag Archives: Property Prices

Asian luxury property prices rise slowly in first quarter

Posted on 12 May 2011 | Comments Off on Asian luxury property prices rise slowly in first quarter

Values of luxury residential properties across Asia continued to slowly rise in the first quarter of 2011. As with the last quarter of 2010, values rose 1.8 per cent, according to Residential Index data from Jones Lang LaSalle.

This is a slowdown from the hectic third quarter of 2010, when prices grew by 7.4 per cent.

The cooling pace comes after various governments enacted anti-speculative measures in 2010.

The index data comes from monitoring major Asian centres including Hong Kong, Beijing, Shanghai, Singapore, Bangkok, Kuala Lumpur, Jakarta and Mumbai. Of these cities, only Kuala Lumpur residential prices showed a slight drop in value of 1.1 per cent over the first quarter, while capital values in Hong Kong showed the greatest increase at 8.3 per cent.

On the Chinese mainland, sales were quiet over the first quarter after new rules were introduced to curb the hot market. Bans on new purchases from owners who already have two apartments and a pilot property tax kept first quarter price increases in Beijing and Shanghai relatively minor at 3.2 per cent and 0.4 per cent respectively.

Despite the current restrictions in China, Chinese buyers will likely still have an effect on other markets within Asia. “The growing pool of high net-worth individuals from mainland China will not only lead to a structural change in buyers’ profile in Hong Kong’s luxury residential market, but will also gradually raise demand for high-quality residential properties in other Asian cities, where the investment environment and social infrastructure are good,” said Joseph Tsang, managing director and head of capital markets at Jones Lang LaSalle, Hong Kong.

Residential prices in China are expected to remain stable or decrease slightly in 2011 due to probable price reductions by developers, and the introduction of fewer high-valued units.

Meanwhile, strong end-user demand and long-term investors will likely see the luxury markets in Hong Kong and Singapore increase in strength.

Source : PropertyReport – 12 May 2011

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New private home sales surge in March

Posted on 16 Apr 2011 | Comments Off on New private home sales surge in March

The number of new private homes sold last month surged 25 per cent from February, snapping four straight months of decline, as investors and upgraders alike turned out in force, seemingly unruffled by the cooling measures announced in January.

The Urban Redevelopment Authority (URA) said on Friday developers sold 1,386 private homes last month, compared with 1,105 in February. Including Executive Condominiums, the total number hit an even more impressive figure of 1,543.

Strong economic growth and persistently low interest rates have kept sentiment bullish on property in general, even after four rounds of measures in 16 months to cool the housing market.

But analysts said they were still surprised by the stellar performance in March, saying they had expected sentiment to dampen in the wake of the cooling measures and the Japanese disaster.

Mr Chua Chor Hoon, senior director of research at DTZ, said: “In February, the numbers were lower because it is a shorter month and coupled with the Chinese New Year, so the period was shorter for people to buy. That could be one of the reasons why the number in February was low, and in March, there’s this feel-good sentiment.”

The URA said that, while the take-up rate of private homes had increased in March, on a quarterly basis, the sales had fallen 21 per cent.

In March, the suburban or outside-central region saw the most sales, with 631 units. Around 492 units were sold in the city fringe areas, while 263 units were sold in the core central region.

PropNex corporate communications manager Adam Tan said: “Investors seem to have taken the Jan 13 cooling measures in stride, with renewed demand in both the mid- and high-end markets. Excluding ECs, the number of units sold in the mid-range market, or $1,200 to $2,499 psf range, was 670, or 48.3 per cent of the total.

“The high-end market, with units costing $2,500 psf or more, recorded 75 units, or 5.4 per cent. Both markets saw the highest levels reached for this year and reflect a returning investor confidence in the mid-to-high-end property market here.”

Mr Tan added the strong response to the launch of H2O Residences in Sengkang, as well as the 157 EC units sold, indicated sustained interest in private property by HDB upgraders.

“Including ECs, 798 units, or 51.7 per cent of the total, were sold below the $1,200psf mark,” he said.

URA data showed that Scotts Square fetched the highest price, with a unit sold at S$4,334 psf.

At the other end, a unit at The Canopy, an EC, sold for S$530 psf. H2O Residences was the most popular project in March, with 255 units sold.

Source : Today – 16 Apr 2011

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