Prime residential land prices in Bangkok grew faster than anywhere else in the Asia-Pacific region during the first half of 2014, according to Knight Frank Asia-Pacific, the independent global property consultancy, as reported in its Prime Asia Development Land Index.
The first half of 2014 saw the index advance 4.9 percent and 2.9 percent for office and residential sites respectively. This represents a loss in momentum when compared to the 9.8 percent and 7.7 percent respective growth rates in H1 2013.
Bangkok saw an 18.2 percent increase in prime land prices in the first six month of the year, representing a 20.3 percent year-on-year rise. For office land the increase in the Thai capital was recorded as being 2.9 percent in H1 2014 and 13.7 percent year-on-year.
Nicholas Holt, Head of Research for Asia Pacific, said: “One reason for the deceleration is the slowdown in China, although activity also fell across the rest of Asia.
“In H1 2014, investment volumes totalled only 37.6 percent of the amount achieved in the whole of last year. Interestingly, in terms of cross-border deals, investment inflow originating from outside Asia during H1 2014 has already surpassed its total volume in 2013 by 76.1 percent.”
For residential sites, Bangkok, Jakarta and Phnom Penh saw the largest positive percentage change in the index. For office sites, Jakarta and Phnom Penh similarly saw strong growth in the index. Bengaluru topped Asia for office sites at 9.2 percent.
Abenomics continued to drive demand for commercial land in Tokyo, which takes the fourth place on the index for prime office development land with 5.8 percent.
Prices appeared to have peaked in most key Chinese markets in Q1 2014, although land prices in Beijing and Shanghai are expected to be well supported in the medium to long term.
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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