Asia’s luxury residential capital values down 0.2% in Q3

October 27th, 2011 at 11:15 pm

Average capital values across luxury residential markets in Asia dropped 0.2 percent in the third quarter of this year, according to the latest Residential Index from Jones Lang LaSalle (JLL).

JLL added that price growth has steadily slowed from the 7.4 percent quarter-on-quarter rise recorded in Q3 2009.

In Q3 2011, sales activity cooled further, with fewer launches and sales recorded in most markets due to economic uncertainties and on-going government measures.

Of the eight monitored luxury residential markets, only Mumbai and Jakarta witnessed an increase in capital values in Q3 2011, while prices remained stable in Bangkok, Singapore and Kuala Lumpur. Prices fell in Beijing, Hong Kong and Shanghai.

Prices of luxury residential properties in Hong Kong decreased marginally by 0.6 percent in Q3 2011, while average prices in Singapore’s luxury prime market stayed flat for the fifth straight quarter, despite a slight rental correction.

Meanwhile, JLL expects prices in Singapore and Hong Kong to soften over the rest of 2011 and next year, partly due to projected rental correction and weaker investor sentiment.

“Though sales volume has slackened in the past months, we expect prices to remain stable as on the back of strong fundamentals,” said David Neubronner, Head of Residential Project Sales at JLL Singapore.

“Nevertheless, with every global crisis, there will be uncertainties and uncertainties create opportunities. Foreign investors looking for a safe haven to retain wealth will continue to consider Singapore as an attractive and reliable proposition.”