An article in the New Straits Times reported that Prime Global Residential Cities Index Q3 2018 launched by Knight Frank, has shown that the price of luxury properties has risen 2.7% on average across 43 cities.
This represents the WEAKEST performance in annual terms for almost six years.
Knight Frank Asia-Pacific head of research Nicholas Holt was reported as saying, “Prime residential markets continued to slow in Asia-Pacific in the third quarter (Q3) of 2018, with 13 of 17 regional markets seeing growth decelerate on the previous quarter.
“Rising interest rates, cooling measures and worsening prospects for global growth are all contributing factors to this region’s prime market slowdown.”
Singapore’s at the top of everyone, with prime prices up 13% over the 12-month period (Q3 2017-Q3 2018).
This was driven by the limited availability of prime properties and a strong market outlook in the first half of this year.
This may not be the peak yet because analysts in Singapore are expecting a new peak in private home prices by year-end as developers put in the market new launches on land they have acquired at significantly higher prices.
Kuala Lumpur only managed to squeeze into the Top 30 out of the 43 cities at the 29th spot. Our prime prices are up 0.7% over the 12-month period (Q3 2017-Q3 2018).
Knight Frank expects to see improvements this year in the Kuala Lumpur luxury condominium market on the back of renewed confidence and improving market sentiment.
Knight Frank says Malaysia is expected to be on investors’ radar after the market stabilises with more clarity in the policies of the newly-elected government.
Actually, the prices mentioned here will not affect most Malaysians. However, it is still good news because prices have gone up by only 0.7% in the past one year.
Yes, this percentage is also reflective of the Malaysian property market which can briefly be summed up in one word; SLOW.
For those looking at upgrading into these luxury properties, this may be a window of opportunity.
For the rest of us, perhaps a look at the Malaysian House Price Index may be a better gauge. Please refer to the image here. Happy looking for a home sweet home.
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.