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Limited price growth continues in luxury residential markets across Asia; Jakarta and Beijing see strongest growth

Jones Lang LaSalle releases Q2 2013 Asia Pacific Residential Index


SINGAPORE, 21 August 2013:  Similar to the first quarter, Q2 2013 saw limited price growth in most monitored luxury residential markets in Asia, according to the latest Jones Lang LaSalle Residential Index.  Seven of the nine featured markets saw an increase in capital values during the quarter, although five registered growth of less than 1 percent. Jakarta and Beijing registered double digit increases of 34.2 percent and 18.7 percent respectively in the 12 months to end-Q2, with only Singapore reporting an annual decline at 2.1 percent.

Jakarta continued to outperform all monitored markets in Asia, up 9 percent from Q1 2013, while average prices in Beijing also rose solidly (6.7 percent q-o-q) due to several high-end projects coming to market during the quarter. Despite restrictive tightening measures affecting sales activity, Hong Kong registered a marginal quarterly increase of 0.3 percent on Q1 2013. Bangkok and Manila also saw slight increases in capital values over the quarter, while prices in Kuala Lumpur remained flat.

Of the nine markets, only Singapore recorded a decline in the luxury residential sector, down 0.6 percent q-o-q, as government cooling measures continued to affect investor sentiment.

Commenting on the Jakarta’s high-end residential market, Luke Rowe, Head of Residential Project Marketing, Indonesia said: “Jakarta’s market continues to move along well with a number of exciting new projects being launched in the quarter receiving excellent responses from buyers. 70 percent of newly launched projects are selling off-plan across the market with better located developments enjoying even higher clearance rates. The limited existing supply of approximately 90,000 apartments coupled with the demand from a city with a population of over 20 million, will ensure the high-end residential market remains buoyant for the remainder of the year.”

Looking ahead to the remainder of the year, Dr Jane Murray, Head of Research, Asia Pacific, Jones Lang LaSalle said: “While the region’s luxury residential market has seen both quarterly and yearly growth, policy restrictions in Hong Kong, Singapore and China are likely to remain in place for at least another 12 months, affecting investor sentiment in these markets and constraining sales activity in line with the first half of the year. However, emerging Southeast Asian markets should continue to experience growth, although in markets such as Bangkok and Manila this may be moderate due to lower sales of new projects. We expect Jakarta to continue to outpace the rest of the region for the remainder of the year with strong price growth as a result of resilient domestic demand.”

 
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Notes to editors
  • The Jones Lang LaSalle Residential Index tracks the capital value performance of high-end residential stock across nine featured markets in Asia.
  • Capital values are on a net lettable area basis 
  • Luxury residential properties include apartments, condominiums, detached and semi-detached housing that are located in traditional prime areas

Q2 2013 Resi image.jpg

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 26, 100 employees operating in 79 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012. www.ap.joneslanglasalle.com 

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