Singapore’s luxury prime market remained stable in the second quarter, as home buyers stayed cautious after recent cooling measures implemented by the government, according to a report from global real estate services firm Jones Lang LaSalle (JLL).
“Despite the low interest rates environment, capital values for the Singapore luxury residential market is expected to remain stable,” said Jacqueline Wong, Head of Residential for JLL.
“This could be a result of a successful government intervention in tightening measures, as well as a sustained cautious mood over the global economy. While developers are not actively increasing their selling prices, they are also resisting deflating the asking prices as these developers have built up enough holding muscle over the past few years of stellar performances.”
Across Asia, the atmosphere in the luxury home market was largely subdued. The average capital values increased 1.6 percent quarter-on-quarter in Q2, slowing from the 1.8 percent rise recorded in the last quarter.
Prices in Beijing dropped 1.9 percent quarter-on-quarter, while prices in Hong Kong surged 7.3 percent quarter-on-quarter and 28.3 percent year-on-year in Q2.
“Sales activity cooled in Q2 11, with fewer launches and sales recorded in most markets as a result of ongoing tightening measures by various governments,” JLL noted.
Meanwhile, JLL anticipates that luxury residential prices will generally stay stable or witness slower growth this year, due to the interest rate and policy risks.
“Prices in China are expected to either remain flat or edge down slightly over the rest of this year as developers will likely introduce more price discounts and launch less high-priced units over the next 12 months,” it said.
In addition, prices in Singapore are expected to remain generally stable over the 2011 second semester, with “continued demand from end-users and long-term investors.”
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