Luxury residential prices in Singapore and China showed signs of stabilising in the third quarter, after declining over the first six months this year.

Jones Lang LaSalle, which released the latest Asia Residential Index on Tuesday, said this was largely supported by end-user demand in Singapore, and fewer price discounts from developers in China.

"Primary capital values for the high-end market in Beijing rose by an average of 7.4 per cent (quarter-on-quarter), although due mainly to larger units being launched, while capital values for luxury apartments in Shanghai were largely unchanged quarter-on-quarter," it said.

Across the nine luxury residential markets in Asia monitored by the firm, average capital values rose by 1.9 per cent on-quarter in Q3, compared with the 0.8 per cent on-quarter increase recorded in Q2.

"Policy restrictions in various markets (including buyer's stamp duty in Singapore) should remain in place at least until 2014, thus potentially limiting sales activity and further price increases, despite low interest rates.

"Capital values of Singapore's high-end properties are expectedto edge up modestly in the next twelve months, mainly supported by domestic buyers," Jones Lang LaSalle said.