The much-awaited full comeback of the luxury end of the real estate market this year might be suspended.
The promising recovery of the luxury home sector is looking a little shaky and unclear, as investors struggle with fears over the Greek debt crisis and general uncertainty remains a plague in the global economy.
Several analysts explained that despite rising demand and increasing prices for upmarket homes since 2009, investors might be starting to be very cautious as the unsteady European economy produces doubts, as to whether the global economic recovery can be maintained.
“It is a fairly uncertain situation. We don’t know if the crisis is really over or if other countries like Spain and Portugal could require more money,” said Nicholas Mak, a real estate lecturer from Ngee Ann Polytechnic. “(The Greek debt crisis) puts a damper on sentiment, and if it continues affecting the global financial market, it could impact investors’ available funds.”
So far, the economic recovery has been remarkable.
The high-end sector with residents in the core central region (CCR) was the spotlight this year with Q1 sales totalling 1,927 units or 44 percent of the total new homes sold and a 4.4 percent increase in prices.