Luxury home prices in Singapore stay stable

Prices of Singapore’s luxury prime homes remained stable for the second straight quarter as buyers stayed cautious after recent government tightening measures, according to Jones Lang LaSalle.

Overall, the Singapore mass residential market saw a 12 per cent increase in prices in 2010 driven by positive sentiment on the back of strong economic performance.

However the high-end market has been more subdued over the same period with prices increasing 9 per cent.

Hong Kong led the price growth in the region, with quarter-on-quarter prices up 6.4 per cent despite the latest round of its government measures aimed at curbing speculative demand.

Broadly, Jones Lang said luxury residential prices in Asia are likely to remain stable or see slower growth for 2011 as buyers have become more cautious about further tightening measures.

At the same time, prices will not likely be pressured downwards as they are supported by rising rental levels and low holding costs.

However, the real estate firm said luxury markets in Hong Kong and Singapore should retain some price momentum due to strong end-user demand

And it added that long-term investors will continue to be attracted by the current low holding costs and the potential hedge against inflation.

Source : Channel NewsAsia – 2 Mar 2011

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