Prices of luxury overseas homes in Asia on the rise

A new report has found that the
average price of luxury residential property in Asia rose in the first quarter
of 2012.  The Jones Lang LaSalle
index showed that prices in eight main Asia Pacific markets were up 1 per cent
on the final quarter of 2011.

Keep reading to learn more about
the Asian luxury homes market.

Varying fortunes for Asia’s main property markets

The first three months of 2012
saw prices of high end residential property rise in Jakarta, Bangkok, Kuala
Lumpur and Hong Kong.  Prices of
property in Jakarta rose by around 16 per cent in the last twelve months
including a 4.3 per cent rise in the last quarter alone.

Todd Lauchlan, country head for
Jones Lang LaSalle Indonesia, said: “The first quarter increase is a
continuation of a trend we have witnessed over the last 18 to 24 months in the
Indonesian residential market, where price increases have been consistently
pushed through by developers on the strength of robust demand levels.”

Luxury residential prices in Hong
Kong were up 1.4 per cent quarter on quarter, with Property Wire attributing this rise to ‘low interest rates and more
active mortgage lending by banks.’ 
Kuala Lumpur saw high end capital values up by 6.9 per cent in the first
quarter.

However, some Asian areas saw
price falls over the same period.  Average
prices in Singapore’s luxury prime market declined by 2 per cent quarter on
quarter while average prices in Beijing fell by 2.3 per cent.

Jane Murray, head of research for
Asia Pacific, said that prices in China are expected to decline further over
the next year.  And, prices in Hong
Kong and Singapore are also expected to decline over 2012, with Property Wire
reporting that this would be ‘as a result of projected rental correction,
generally weaker investor sentiment as well as policy risks.’

She said: “Among emerging South
East Asian markets, the Jakarta sales market should see the strongest price
growth on the back of a strong economy while prices in Kuala Lumpur and Bangkok
should be largely stable.”

Author: Nick
Marr