By Nikki De Guzman:
Luxury residential properties in Jakarta and Bali saw the highest growth in prices last year, according to Knight Frank’s price growth index.
The capital Jakarta took top spot as luxury home prices there rose 38 percent in 2012 compared to the previous year, followed by Bali which was tied in second place alongside Dubai with a 20 percent gain.
“Jakarta benefited from continued strong GDP growth, which has stood at or above six percent for five out of the past six years and, in particular, from rapid growth in middle-class wealth,” said Knight Frank.
Prices in Jakarta soared to US$346 (S$432) psf in 2012 compared to US$250 (S$312) psf previously, while in Bali it rose to US$269 (S$336) psf from US$224 (S$280) psf.
Despite the surge, Jakarta and Bali failed to make it in the list of 20 most expensive places to buy luxury property.
Half of the cities monitored in the report recorded price falls while a third posted gains. Overall, the Asia Pacific (APAC) region fared better than Europe.
This disparity was attributed to the 2008 global financial crisis, Knight Frank said.
“The search for safe haven investments has continued to propel prices higher in key global cities; some of the markets worst hit by the global financial crisis appear at long last to be recovering; and the impact of growing global wealth flows has kept governments busy in their attempts to limit price growth and deflate nascent real-estate bubbles before they explode.”
Image Source: Jakarta Globe
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
Related Stories:
Ascott opens first Citadines in Malaysia
UK 140 home portfolio up for sale
No pain in Spain as foreign property buyers return to the market