Based on JLL’s fourth quarter 2017 report on the luxury residential market in Asia Pacific, there was a mixed performance.
Of the eight markets covered by JLL, only three saw quarterly price growth in excess of 1.0%.
In Shanghai, sales volume in the high end market contracted in the quarter as higher mortgage rates and down payments reined in demand. In Beijing, sales in new projects bolstered luxury sales. Overall however, the tight policy environment is persisting.
In China, initiatives to promote greater housing affordability and development of the leasing market remained a central theme.
Some governments offered land sites for the development of rental-only housing.
Hong Kong topped the chart with strong annual and quarterly price growth in the primary sales market.
In Hong Kong, capital values rose to records levels, together with strong demand for new launches. Two apartments at the Peak sold for HKD 132,000 per sq ft, or HKD 1.17b in total.
This set a new record for apartments in the region in terms of unit price.
On the policy front, no new cooling measures were reported in October’s policy address.
However, a policy targeted at upgraders was relaxed. The period in which a buyer is eligible for a stamp duty refund upon selling their existing property was extended.
Secondary market transactions continued to dominate sales activity as there was a lack of new launches.
At the same time, expectation of rising prices helped to draw buyers to the market, fuelled by the en-bloc trend that had been sweeping the market for the past 6 months.
In Jakarta, demand for high-end properties continue to be impacted by luxury and super-luxury taxes.
Several projects with unique selling points managed to move well, driven by the growing middle and upper class economy and increased spending power.