Luxury Home Prices Record Further Increases but Rents Weaken Amid Flat Leasing Demand
Overall luxury residential prices in ten major markets in Asia tracked by CBRE Research increased by 1.4% q-o-q in Q3 2013. In Beijing the ongoing supply shortage was further exacerbated by a prolonged approval process for high-end residential projects. As a result average asking prices surged by 8.6% q-o-q despite repeated government measures to curb property prices. Prices in Shanghai, Guangzhou, and Shenzhen also recorded steady price growth thanks mainly to upgrading demand.
Overall luxury residential rents declined by -0.4% q-o-q. In Shanghai the end of the peak expatriate leasing season saw several landlords adjust asking rents downward, causing average rents of luxury apartment to decline by -1.3% q-o-q. In Guangzhou the large volume of high end units for rent pushed down rents by a further -1.2% q-o-q whilst New Delhi saw weaker leasing demand and falling rents across key submarkets.