Luxury residential sales in the Asia Pacific region saw minimal gains in the second quarter of the year, with Manila and Beijing posting significant price growths, according to a report by Jones Lang Lasalle (JLL).
“Of the eight featured markets, only Beijing and Manila saw price growth above 1 percent quarter-on-quarter, while prices in Hong Kong and Singapore continued to slide,” the report said.
Beijing posted the highest growth at 1.6 percent, followed by Manila at 1.1 percent.
“In Beijing, healthy sales volumes were underpinned by a rise in upgrade demand and buyer anxiety over future price rises.” the report noted.
However, price gains were tempered by strong competition and abundant supply, JLL noted.
The real estate services firm described as “healthy” the sales activity in Manila.
“Elsewhere in SEA, market conditions were generally similar to the previous quarter with difficulties persisting in the high-end segment in Jakarta and Kuala Lumpur, while sales activity in Bangkok and Manila was healthy,” the report said.
Most of the countries monitored posted growth during the quarter except for Hong Kong which posted a 1.6-percent decline and Singapore 0.5 percent.
“Sales volumes rose in Singapore’s prime districts as some developers cut prices and offered deferred payment schemes to entice buyers,” the report said.
Year-on-year, most markets except for Singapore and Hong Kong posted price growths.
“ . . . Only Shanghai and Beijing recorded price growth in excess of 10 percent, while prices in Singapore and Hong Kong declined.
Shanghai posted the highest growth at 20.2 percent, followed by Beijing at 11.8 percent.
Other cities registering annual growth include Jakarta at 6.9 percent, Manila at 5.8 percent, Bangkok at 1.7 percent, and Mumbai at 0.6 percent.