Singapore luxury home prices to remain stable in 2011

Luxury residential prices in the Asia Pacific region are generally likely to remain stable or see slower growth in 2011 due to ongoing policy and interest rate risks.

According to Jones Lang LaSalle, the luxury markets in Hong Kong and Singapore should retain some price momentum due to strong end-user demand and with long-term investors continuing to be attracted by the current low holding costs and the potential hedge against inflation.

Prices in China are expected to either remain flat or edge down slightly over this year as developers will likely introduce more price discounts and launch less high-priced units over the next 12 months.

“The growing pool of high net-worth individuals from mainland China will not only lead to a structural change in buyers’ profile in Hong Kong’s luxury residential market, but will also gradually raise demand for high-quality residential properties in other Asian cities, where the investment environment and social infrastructure are good” says Joseph Tsang, Managing Director and Head of Capital Markets, Hong Kong.