According to The Wealth Report, Singapore has the 13th most expensive luxury real estate market in the world.
The prime property in the city state could fetch US$25,600 per sqm, or US$3,007 per sqft. However, these prices do not even represent the peak in Singapore’s luxury markets: the prices of luxury property have down by 4.7 percent in the third quarter from the year before. This could be attributed to the fears over a property crash in China.
Price down was registered in Singapore, Sydney and Shanghai, which were the fastest growing markets in the previous survey.
Hong Kong was in fourth place with an average price of US$47,500 per sqm, although 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.
But the fall in luxury home prices are not uniform across Asia. Jakarta reported 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 such as economic deleveraging in the West and political uncertainties in China are expected to drive growing volatility in the luxury property market in the coming year.
Despite these variables, Singapore’s luxury property market remains attractive among affluent and rich property buyers in the Commonwealth of Nations. Since the market value is on the rise, rental is attractive and re-sale value is always high, some of the volatilities would not have a lasting impact on the demand for the properties in the world’s 13th most expensive luxury real estate market.