Jones
Lang LaSalle releases Q3 2013 Asia Pacific Residential Index
Luxury
residential markets across Asia Pacific see limited price increases between
July and September 2013
The
third quarter of 2013 saw limited price growth in monitored luxury residential
markets in Asia Pacific, according to the latest Jones Lang LaSalle (JLL)
Residential Index. While four of the
nine featured markets saw minimal increases in capital values during the
quarter, Hong Kong and Singapore reported quarterly declines, and the remainder
recorded no change.
On a
yearly basis, growth remained strong for both Beijing and Jakarta, with both
cities experiencing double digit growth; Hong Kong and Singapore registered
price declines over the past 12 months and the rest of the markets saw growth
that ranged from 2.4% to 6%.
After
10 quarters of strong growth, prices in Jakarta remained flat, leaving room for
Beijing (1.6%) and Shanghai (1.5%) to lead the region in quarterly price
increases, as a result of fewer projects coming to market.
Healthy
sales activity coupled with strong local demand saw Manila outperform its
Southeast Asian peers, with quarterly growth of 0.8% in Q3.
However,
Jakarta continues to outperform all monitored markets on an annual basis with
26.2% growth, followed by Beijing at 14.1% y-o-y. Of the nine monitored
markets, Singapore saw the biggest quarterly (-0.4%) and annual (-2.5%)
declines as tightening regulations on bank credit continued to affect investor
sentiment.
In
Hong Kong, luxury residential prices also saw a marginal quarterly decline of
0.3 percent as sales volumes remain low due to buyer caution.
Commenting
on the Hong Kong high end residential market, Mr. Joseph Tsang, Managing
Director for JLL in Hong Kong said: “Buying demand for luxury residential
properties remains weak, with monthly transaction volumes in Q3 falling to
levels last seen during the Global Financial Crisis. Although prices have
generally been holding up in the secondary market, we are starting to see signs
of discounting in the primary market and expect prices to remain under pressure
over the last quarter of the year and into 2014.”
With
regard to Mumbai’s residential market performance, Mr. Anuj Puri, Chairman
& Country Head, JLL India said: “In Mumbai, residential property prices
have increased by 33 % from the previous peak values of September 2008, and by
73 % from previous trough values of September 2009. The luxury residential market
was no exception to this ‘revival’. This is indeed high, and the window of
opportunity for investing in residential properties in Mumbai remained for just
about a year during the last trend reversal.”
“Currently,
given the exceedingly high pricing and slow sales, we expect a marginal price
correction in Mumbai’s residential property sector. However, the window of
opportunity could be smaller than the previous one, since fence-sitting
investors are jumping in quickly even with a modest price correction. Mumbai’s
residential real estate market has always shown higher resistance for price
moderation, largely because of the scarcity of land. Land cost often accounts
for 3 / 4th of a project’s cost, and we are unable to unlock land in the
peripheral regions that could effectively push housing demand away from the
city. With insufficient and belated infrastructure, the city’s prime areas will
continue to command premium valuations.”
Dr
Jane Murray, Head of Research, Asia Pacific, JLL said: “Despite limited price increases
across the region’s luxury residential market in Q3, we have still seen
moderate to strong yearly growth in most markets. Looking forward to the
remainder of the year and into 2014, we expect sales activity in Greater China
and Singapore to stay at similar levels as investor sentiment continues to be
affected by government tightening measures that are likely to remain in place
for the next 12 months. Over the next year, emerging southeast Asian markets
should continue to experience moderate price growth while we expect to see the
strongest increases in Beijing and Shanghai as a result of resilient local
demand.”
For
Media Contact.
Arun
Chitnis
Head – Corporate Communications & Media
Relations
Jones
Lang LaSalle India
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6, Amar Avinash Corporate Plaza
Bund
Garden Road, Pune - 411 001.
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(020) 3093 0441 Fax: (020) 4019 6101
Mob:
+91 96571 29999
Website:
www.joneslanglasalle.co.in
Blog:
www.joneslanglasalleblog.com/realestatecompass
