Jakarta remains the world’s hottest luxury property market with prices in the city’s high-end segment soaring 37.7 percent in 2013, according to Knight Frank’s Prime Global Cities Index which was reported in the media.
Liam Bailey, global head of residential research at Knight Frank, attributed skyrocketing prices in the Indonesian capital to “very strong demand” and “very limited supply”.
Last year was the second consecutive year that Jakarta occupied the top spot. In 2012, luxury home prices had risen 38 percent.
Following behind are Dubai and Beijing, where prime housing prices rose 17.5 and 17.1 percent respectively.
Dubai took fourth spot, while Los Angeles grabbed fifth position.
Meanwhile, Hong Kong and Singapore – Asia’s hottest real estate markets three years ago – have cooled mainly due to government measures aimed at curbing speculation and foreign buying.
Bailey noted that the measures have affected the “flow of Chinese money coming into these markets”.
As a result, luxury property prices in Hong Kong and Singapore have slid 2.2 and 0.8 percent respectively.
Knight Frank’s Prime Global Cities Index monitors luxury real estate markets across 30 cities around the world, with the consultancy defining “prime real estate” as homes that were sold within the top five percentile in terms of value.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Stories:
Luxury property sales in China to surge this year
No decline in Thailand’s popularity
Singapore buyers losing interest in London property?