Jakarta saw the strongest increase in high-end residential prices among eight key markets in the Asia Pacific in the first quarter of 2012, with a 4.3 percent quarter-on-quarter rise, real estate consultant Jones Lang LaSalle says.
On average, high-end residential prices in the Asia Pacific rose by one percent in the first three months of this year compared with the fourth quarter of last year, according to a quarterly report released on Monday by Jones Lang LaSalle.
“Among emerging South East Asian markets, the Jakarta sales market should see the strongest price growth this year on the back of a strong economy,” said the firm’s Asia Pacific head of research Jane Murray in a press statement.
Murray also expected prices in China to decline further over the next 12 months, as policy restrictions are likely to remain in place and developers are likely to introduce more price discounts.
“Prices in Hong Kong and Singapore are also expected to decline over 2012 as a result of a projected rental correction, generally weaker investor sentiment as well as policy risks,” she added.
Average prices in Singapore’s luxury prime market declined by two percent quarter-on-quarter after remaining stable for six consecutive quarters on the back of an on-going rental adjustment.
Luxury residential prices in Hong Kong showed initial signs of stabilising after declining over the past six months, up 1.4 percent quarter-on-quarter, largely due to low interest rates and more active mortgage lending by banks.