Luxury residential property prices in Bangkok rose 0.8 percent quarter-on-quarter and 2.0 percent year-on-year according to research from JLL.
During Q1 2014, most monitored luxury residential markets in Asia Pacific saw limited or no price growth as a result of slower sales activity. Of the nine featured markets, only three saw quarter-on-quarter price growth of 2 percent or more, while the remainder recorded a decline or small increases.
The strongest price gains were seen in Shanghai and Kuala Lumpur.
Luxury residential prices in Hong Kong declined 1.2 percent quarter-on-quarter, with price discounts in new launches leading many sellers in the secondary market to lower asking prices. Capital values in Singapore’s luxury segment continued to trend lower (–0.7 percent quarter-on-quarter), as weak investor demand persisted following the introduction of tighter regulations on bank credit in June 2013.
In China, Beijing and Shanghai saw capital values rise despite subdued sales, mainly supported by demand from upgraders. High-end capital values in Shanghai rose by 4.5 percent quarter-on-quarter, while in Beijing prices increased by 1.2 percent quarter-on-quarter.
In the 12-months ending Q1 2014, Shanghai recorded the strongest price growth (+11.1 percent year-on-year) of all markets monitored by JLL.
Emerging Southeast Asian (markets saw a varied performance for capital values with Kuala Lumpur outperforming its regional peers (+3.4 percent quarter-on-quarter), but this was largely due to the introduction of higher quality units which pushed capital values higher.
Manila’s sales activity was healthy amid strong local investor demand, and this supported a rise in prices (+2.1 percent quarter-on-quarter). Average prices in Jakarta remained stable on quiet sales activity as a result of a slowing economy and rising interest rates.
Looking ahead, JLL predicted sales activity and price growth is likely to be limited over the short term.
No change to policy restrictions (e.g. extra stamp duties in Singapore and Hong Kong, tighter regulations on bank credit in Singapore; for China, home purchase restrictions and capital gains tax) are expected until at least 2015, with sales in the high-end residential segment likely to remain similar to or slightly below levels seen in the last 12 months.
Prices in Hong Kong and Singapore are likely to ease further this year (down by between 5 and 10 percent) with property curbs limiting buying demand and discounts in the primary market weighing on prices.
Only modest price growth is expected in Beijing and Shanghai following the latest cooling measures imposed in November. Jakarta is expected to see a small decline in capital values, while other emerging SEA markets should see moderate price growth.
Luxury residential properties monitored by JLL in this report include apartments, condominiums, detached and semi-detached housing located in traditional prime areas.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
Stories you need to know from last week:
MUST READ: Bangkok condo new launch prices at two-year low
Phuket is home to Asia’s best Real Estate agency website
Big fall in Bangkok CDB launches in Q1
Buyers take a closer look at Krabi
COMMERCIAL NEWS: Factory rental rates set to remain stable
If you have a news story or comment for publication about Thailand property or real estate please email andrew@propertyguru.com.sg