Singapore has the 13th most expensive luxury real estate market in the world, according to The Wealth Report.
According to the report, prime property in the lion city can fetch US$25,600 per sqm, or US$3,007 per sqft. Yet these prices do not even represent the peak in Singapore’s luxury markets: the report noted that prices of luxury property have decreased by 4.7 percent in the third quarter from the year before. The report attributed the fall party to fears over a property crash in China.
Price falls were registered in Singapore, Sydney and Shanghai, which were the fastest growers in the previous survey.
Hong Kong came in fourth place with an average price of US$47,500 per sqm, while apartments in Hong Kong were ranked tenth with an average price of US$28,300 per sqm.
“We shouldn’t be overly surprised that prices are falling in some of Asia’s prime markets; the falls follow huge booms over the past two years,” said Liam Bailey, Head of Residential Research at Knight Frank.
However, the fall in luxury home prices are not uniform across Asia. Jakarta saw prices increase by 14 percent from the year before, as a result of a strong domestic economy with steady growth.
According to Asia One, a range of uncertainties including economic deleveraging in the West and political uncertainties in China are expected to cause growing volatility in the luxury property market in the coming year.
Monaco topped The Wealth Report, commanding and average US$58,300 per sqm.