Luxury property prices could rise 20% in 2010

Property group Colliers International says luxury properties will outpace mass market as prices set to soar this year.

Going forward, buying interest for mid-tier and high-end residential properties is expected to be strong. Colliers International is predicting high-tier home prices to rise in the region of 15% to 20% in 2010, with a lower overall price increase of 10% for the mass-market segment.

Prices of mid-tier homes will see a 15%-20% price increase as more high-value projects, such as sites which were bought collectively at bullish prices in 2007, are expected to be launched in 2010. Furthermore, the proliferation of small-sized “mickey-mouse” apartments selling at a relatively high price per sq ft will also play a part in pushing up the price index for mid-tier properties.

Overall, market sentiment is bullish for 2010, with analysts such as Ong Kah Seng, Manager, Consultancy & Research, Knight Frank Pte Ltd, estimating that the benefits of the two Integrated Resorts will potentially create opportunities for more “international exposure and familiarity” to foreign investors, especially the high net-worth individuals.