Skip Ribbon Commands
Skip to main content

News Releases


A mixed picture for high-end residential prices in Asia

Jones Lang LaSalle releases Q2 2012 Residential Index

SINGAPORE, 15 August 2012 – Emerging South East Asian cities are leading the charge in luxury residential capital value growth across Asia, according to the latest Residential Index from Jones Lang LaSalle. Jakarta and Manila registered double digit increases of 19.2 percent and 10.5 percent respectively in the 12 months to end-Q2. Meanwhile, Hong Kong, Singapore, Shanghai and Beijing have seen annual declines in high-end residential prices of up to 8 percent.

Across monitored luxury residential markets in Asia as a whole, average capital values remained largely stable with an increase of 0.8 percent q-o-q in Q2, similar to the 1.1 percent q-o-q increase recorded in the previous quarter.

Other key highlights include:

  • Luxury residential prices in Hong Kong edged up 2.0 percent during the quarter due to more active mortgage lending by banks and improved market sentiment.
  • However, in Singapore, prices dipped 2.9 percent q-o-q on the back of ongoing rental declines and property cooling measures.
  • Prices in Beijing fell 2.7 percent due to tightening policies in place and some price discounts by developers, although Shanghai did see a marginal increase of 0.3 percent for the quarter.
  • Jakarta outperformed all monitored markets in Asia, supported by strong underlying fundamentals. The city is set to see the strongest price growth for the rest of 2012 due to solid local demand.

“Jakarta has outperformed its neighbouring markets once again this quarter in the high-end residential sector. The market has been fuelled by strong wage and employment growth, low interest rates and high consumer confidence. We expect this upward trend to continue for the rest of the year, in line with projections that Jakarta will see the strongest price growth in the luxury residential space in 2012,” said Todd Lauchlan, Country Head, Jones Lang LaSalle Indonesia.

Looking ahead, Dr Jane Murray, Head of Research, Asia Pacific, Jones Lang LaSalle said: “Prices in China are expected to soften further in the second half of 2012 with policy restrictions likely to remain in place, although tight supply in prime locations will likely limit price discounts by developers. Rental correction, government policies and generally weaker investor sentiment should underpin further price declines in Singapore in the second half of 2012. On the other hand, Hong Kong prices are expected to stay relatively flat in the last half of 2012 because of tight supply and low holding costs.”