APAC average residential prices up 1.9% y-o-y in 2H2020: Knight Frank

SINGAPORE (EDGEPROP) - According to a Knight Frank report on Asia Pacific property markets in 2H2020, the region saw an average annual price increase of 1.9% in 2H2020. This is based on a basket of 24 residential property markets in the region tracked by the consultancy.

Knight Frank says that 14 of the 24 regional city indices recorded stable or increased y-o-y price growth during the period in review. It adds that the main driver behind this performance was the low interest rate environment which buffered the weaker economic conditions brought about by the Covid-19 pandemic.

The report observes the Singapore market saw better-than-expected housing demand despite the circuit breaker period from April to June 2020, as well as top-down changes that closed a loophole on option issuances. Knight Frank expects Singapore’s residential market to remain steady, given the combined effects of low interest rates, low household leverage, and a projected economic recovery. This will act as a floor to any further price declines this year, it adds.

In Bangkok, condominium prices fell 3% y-o-y in 2H2020 on weaker demand because of the city’s ongoing political uncertainty and a battered tourism-reliant economy. Many developers have delayed project launches, and some are offering discounts and offers to drum up sales, says Knight Frank. It adds that there is a “heightened potential” that the Thai government could announce policy easing measures this year.

In Australia, housing prices rose 1.3% y-o-y across Sydney, Melbourne, Brisbane, and Perth. Western Australian capital Perth recorded a 3.7% y-o-y price growth, the highest among the state capital cities. Knight Frank expects the low interest rate environment to remain in place for the next three years and is projecting limited incoming new supply in the major cities.