China cools, Jakarta sizzles

Due to a tightening of policies, China's luxury apartment value has chilled

According to Jones Lang LaSalle’s latest Q4 2011 Asia Pacific Residential Index, which follows eight luxury residential markets within the region, there was on average a 0.2 per cent increase in capital value in the fourth quarter of 2011.

While Beijing, Bangkok, Jakarta, and Mumbai witnessed an increase, and Kuala Lumpur and Singapore remained stable, Hong Kong and Shanghai slumped.

While Jakarta had an over 14 per cent growth in 2011 from high-end residential prices from the flourishing economic growth of Indonesia, Hong Kong’s prices were edged down 3.3 per cent in 4Q 2011 from a tendering investment sentiment and more constricted credit.

Going forward, Jane Murray, head of Asia Pacific Research at Jones Lang LaSalle stated, “We expect a multi-speed luxury residential market in the Asia Pacific region in 2012.  We think prices in China will soften further, though developers are likely to introduce only moderate price discounts due to limited supply in prime locations. Prices in Hong Kong and Singapore are expected to decline over the year due to projected rental correction, tighter credit and government measures; that said generally low holding costs will limit the extent of price correction. Whilst prices in Kuala Lumpur and Bangkok are expected to stay flat, we anticipate Jakarta prices to be boosted by Indonesia’s strong economy.”



Filed Under: Asia (General)NewsNews by Country


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