Jones Lang LaSalle has revealed its Asia Pacific Property Digest for the first quarter of 2012.
The report has stringently analysed the residential real estate markets of key cities across Asia Pacific, including Bangkok, Kuala Lumpur, and Singapore.
Dr Jane Murray, Jones Lang LaSalle’s head of research said: “Following a strong end to 2011, Asia Pacific’s property markets saw a moderation in activity levels in Q1 2012.”
The report has stringently analysed the residential real estate markets of key cities across Asia Pacific, including Bangkok, Kuala Lumpur, and Singapore.
Dr Jane Murray, Jones Lang LaSalle’s head of research said: “Following a strong end to 2011, Asia Pacific’s property markets saw a moderation in activity levels in Q1 2012.”
Bangkok:
According to the recent report Bangkok residential capital value rose 1.1 per cent in the first quarter of this year; compressing yields to four per cent.
Strong take-up in the residential market offset supply. Jones Lang LaSalle reported that gross rents rebound whilst effective rents slightly decreased at 0.4 per cent.
Local property purchasers continued to be the major source of demand for high-end condominiums; for both self-occupancy, and investment purposes.
The only Bangkok project to be completed in the first quarter was Pearl Residence, Sukhumvit 24. Between January-March 78 units were added to the project stock. In total, 23,102 units now complete the stock.
The report concluded: “Demand from end-user buyers and investors is expected to remain sound following renewed interest in high-rise developments in the city centre.”
The report summarised that although the amount of supply is falling compared to previous years, rents are expected to continue to experience pressure from existing and future supply.
Capital values are expected to continue in an upward trend as condominiums continue to attract liquidity flush buyers, confirmed the report.
Kuala Lumpur:
It was reported that the real estate developers in Kuala Lumpur concentrated on more saleable mid-price range condominiums. As a result, high-end project launches slowed in quarter one. Between January-March, M City was the only high-end development to be completed. Developer, Mah Sing Group offered a five per cent price discount as well as a developer-bearing scheme to purchasers.
On the whole, capital and rental values remained stable, according to the Jones Lang LaSalle Q1 2012 report.
Over the year, the high-end condominium market is expected to remain ‘soft in the short-term.’ This reflects market caution and continued global economic uncertainty.
Sale and leasing market demand has been stronger amongst smaller units: this trend will continue as developers attract a larger purchaser market in constructing ‘more affordable’ units.
The report concluded about the year ahead: “Due to construction increases, prices of new launches will effectively continue to increase.”
Singapore:
Singapore’s real estate market delivered a downturn in figures, across the board, according to Jones Lang LaSalle’s first quarter report of 2012.
In the prime districts, only two new projects were launched this quarter.
Unit completion stood at 300, down 36.2 per cent, quarter-on-quarter. This figure, stands at the lowest since 2008, quarter four.
Recent restrictive legislation: Additional Buyers Stamp Duty continues to negatively impact the volume of Singapore sales.
Residential rents also follow suit in falling as supply hits the market.
While, the influx of expatriates and demand from dwellers opting to rent rather than buy following the introduction of ASBD in December has helped to maintain consistent demand, the increase in supply of new properties has added downwards pressure on older rental properties, stated the report.
In an over-view of the year ahead the report said: “Despite steady demand, supply pressure, combined with the latest round of cooling measures, is likely to maintain downwards pressure on rents and capital values for properties in the prime districts and as such we expect both rents and capital values to continue to soften in 2012.”
Dr Jane Murray, head of research Asia Pacific summarised: “Despite the more uncertain global economic environment, the Asia Pacific economy is expected to significantly outpace the rest of the world this year.”
By Property Report
According to the recent report Bangkok residential capital value rose 1.1 per cent in the first quarter of this year; compressing yields to four per cent.
Strong take-up in the residential market offset supply. Jones Lang LaSalle reported that gross rents rebound whilst effective rents slightly decreased at 0.4 per cent.
Local property purchasers continued to be the major source of demand for high-end condominiums; for both self-occupancy, and investment purposes.
The only Bangkok project to be completed in the first quarter was Pearl Residence, Sukhumvit 24. Between January-March 78 units were added to the project stock. In total, 23,102 units now complete the stock.
The report concluded: “Demand from end-user buyers and investors is expected to remain sound following renewed interest in high-rise developments in the city centre.”
The report summarised that although the amount of supply is falling compared to previous years, rents are expected to continue to experience pressure from existing and future supply.
Capital values are expected to continue in an upward trend as condominiums continue to attract liquidity flush buyers, confirmed the report.
Kuala Lumpur:
It was reported that the real estate developers in Kuala Lumpur concentrated on more saleable mid-price range condominiums. As a result, high-end project launches slowed in quarter one. Between January-March, M City was the only high-end development to be completed. Developer, Mah Sing Group offered a five per cent price discount as well as a developer-bearing scheme to purchasers.
On the whole, capital and rental values remained stable, according to the Jones Lang LaSalle Q1 2012 report.
Over the year, the high-end condominium market is expected to remain ‘soft in the short-term.’ This reflects market caution and continued global economic uncertainty.
Sale and leasing market demand has been stronger amongst smaller units: this trend will continue as developers attract a larger purchaser market in constructing ‘more affordable’ units.
The report concluded about the year ahead: “Due to construction increases, prices of new launches will effectively continue to increase.”
Singapore:
Singapore’s real estate market delivered a downturn in figures, across the board, according to Jones Lang LaSalle’s first quarter report of 2012.
In the prime districts, only two new projects were launched this quarter.
Unit completion stood at 300, down 36.2 per cent, quarter-on-quarter. This figure, stands at the lowest since 2008, quarter four.
Recent restrictive legislation: Additional Buyers Stamp Duty continues to negatively impact the volume of Singapore sales.
Residential rents also follow suit in falling as supply hits the market.
While, the influx of expatriates and demand from dwellers opting to rent rather than buy following the introduction of ASBD in December has helped to maintain consistent demand, the increase in supply of new properties has added downwards pressure on older rental properties, stated the report.
In an over-view of the year ahead the report said: “Despite steady demand, supply pressure, combined with the latest round of cooling measures, is likely to maintain downwards pressure on rents and capital values for properties in the prime districts and as such we expect both rents and capital values to continue to soften in 2012.”
Dr Jane Murray, head of research Asia Pacific summarised: “Despite the more uncertain global economic environment, the Asia Pacific economy is expected to significantly outpace the rest of the world this year.”
By Property Report
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