Prices of luxury homes in Singapore are expected to drop by 3.3 percent in 2016 compared to an estimated decline of 3.5 percent last year, according to Knight Frank’s Prime Cities Forecast Report.
However, the city-state is expected to fare better than Hong Kong, where prices of prime properties are predicted to fall by five percent versus an estimated growth of 1.5 percent in 2015.
As such, the property consultancy foresees that the territory will overtake Singapore as the weakest-performing luxury residential market this year among the ten global cities being tracked.
“Many of the Asia-Pacific prime residential markets will face existing and new headwinds in 2016, with our forecasts showing quite a range of price performances, including negative price growth in Hong Kong and Singapore. Despite that, there remain pockets of opportunity in these two markets, as prime supply is relatively limited,” said Nicholas Holt, Knight Frank’s Research Head for Asia Pacific.
Meanwhile, Sydney is expected to see the strongest price growth of 10 percent in 2016, albeit slower than the estimated 15 percent expansion last year due to Australia’s economic slowdown, weaker stock market performance in recent months, and the introduction of foreign investment fees.
This is followed by Monaco and New York with a forecasted price growth of five percent each. Shanghai is expected to post a gain of four percent, while Miami and London could each post growth of two percent. Conversely, prices in Geneva are likely to remain unchanged, while Paris could see a dip of three percent.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
