Heading the increase in luxury home prices, Singapore as well as Tokyo have been going against the grain of the dropping housing prices worldwide. Instead, these 2 countries have increased approximately 11.5% in the first two quarters of the year, according to the Singapore Business Review.
Quoted by Knight Frank international residential research head Kate Everett-Allen, this is the place where higher prices are led by the increase in foreign demand and rising land bids by developers.
On the other hand, there are solutions to slow down the increase in property prices in Singapore.
Investors may not be a great fan of the property market laws as in such situations, it will add to the net earnings in the case of purchase or disposal taxes.
As mentioned, Tokyo is facing a similar situation as Singapore. Its property housing prices went up by a total of 9.4%. Knight Frank accounted for the increase, alongside with the price ratio of Tokyo with Singapore and Hong Kong, and in the near future for 2020 Olympics.
Being in the neutral range, there are countries such as Beijing and Shanghai where their luxury home prices went up by 7.3% and 3.3% individually.
Kate then stated that China’s choice of pulling back the housing subsidy campaign is expected to affect the sales sector in the other-tier cities. However, it is likely that the luxury price rise will still remain in first-class cities.
Knight Frank observed that the mean price rise for twenty cities globally decreased from 4.2% to 6% in the past.
Kate further commented about how there are a number of factors that will result in the overall results of the Index in the future. These factors are such as the increase in the size of the market, tighter implementations and a moderate and steady increase in China’s first-class cities as well as a moderate price increase.