Prices of luxury property in Bangkok rose by an impressive 12.3 percent during 2013 according to research from Knight Frank.
The Knight Frank Prime Global Cities report, which looks at the top five percent of the mainstream property markets in 30 global cities, ranked Bangkok’s performance in 7th place – ahead of New York, Sydney, Tokyo, London and Singapore.
In the six-month period alone prices of prime luxury property in Bangkok rose by 4.8 percent, according to the report.
Leading the way in terms of price performance was Jakarta. Prime property in the capital of Indonesia recorded a 37.7 percent year-on-year increase – way ahead of second place Dublin, Ireland, which showed a 17.5 percent increase during 2013.
Elsewhere in Southeast Asia, prices of luxury property in Kuala Lumpur rose by 5.5 percent year-on-year, while in Singapore there was a 0.8 percent drop in prices at the top of the market, according to the report.
The report noted: “Asian results provide a mixed picture as the array of cooling measures introduced in 2012 and 2013 have had varying degrees of success.
“In terms of price growth, Beijing leads with luxury property prices rising 17.1 percent in 2013 while Hong Kong saw prices soften by 2.2 percent in 2013, due primarily to the series of cooling measures introduced in the last few years.”
Looking ahead, Knight Frank feels luxury property could be losing some its allure
“Although the index exceeded its 2012 performance in 2013, there is a sense that the tide is turning and luxury homes in the world’s top cities are no longer outperforming their mainstream counterparts to the extent they were.
“Of the world’s top four financial centres only New York saw its prime residential market outperform its wider mainstream market in 2013.”
Going forward, the report noted: “The key question is whether as the global economic outlook improves, the affinity that the world’s wealthy have with luxury bricks and mortar will start to diminish.
“We expect not – given the lifestyle benefits attached to this type of asset class. We do expect however that the world’s wealthy will give more credence to changing tax rules and currency fluctuations, and some may look beyond capital appreciation to the potential rental returns that the prime [property] market can achieve.”
You can download the Knight Frank Prime Global Cities report here.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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