By Arthur Sim | Posted: 22 August 2011 2258 hrs

SINGAPORE

Luxury home prices in Singapore fell 1.7 per cent in the second quarter of the year from the first three months, the biggest drop in CBRE’s list of cities in its Asia Luxury Residential report.

CBRE said that no new luxury residential projects were launched in Singapore during the second quarter as existing projects continued to struggle to attract buyers.

Luxury home rents fell by 1.9 per cent quarter-on-quarter due to the large stock of projects completed and available for rent.

CBRE noted that while prices for luxury homes continue to decline slowly, other segments are likely to remain stable.

On the upside, the transaction volume of luxury homes (based on CBRE’s basket of transactions in the primary and secondary market) actually rose 23 per cent to 9,059 units in the second quarter, compared to 7,336 in the previous quarter.

CBRE’s Asian Luxury Residential Capital Value Index rose by 2.5 per cent in the second quarter, compared to a rise of 5.5 per cent in the first quarter.

It noted that price appreciation in Hong Kong moderated to 8.9 per cent in the second quarter, from 14 per cent in the first quarter.

CBRE said capital value growth eased in most first-tier cities in China following the implementation of further restrictions on home purchases.

Prices in Bangkok and Ho Chi Minh City were static as demand from end users was dampened by more stringent mortgage policies.

– CNA/al