Asian Luxury Housing: Slowing Due to Government Cooling
In the Asian luxury housing markets, growth has been fairly steady over the past year, but this is changing due to government cooling measures in recent months, evident in transaction numbers throughout areas like Beijing, Guangzhou, and Shenzhen. Sales figures also declined in Singapore and Hong Kong after stamp duty increased on all housing transactions.
These statistics, from CBRE, show declines due to lowered buyer demands. These cooling measures have scared some buyers out of the market and may continue to do so. Government officials are saying that these measures will stay in effect, along with additional control measures, if inflation continues to rise.
As far as rentals are concerned, we are seeing a slight increase in the leasing market from those potential buyers stepping back from the purchase market. Overwhelming consensus shows that international buyers are sensitive to the current market's climate and will put pressure on rentals, yet the leasing market looks to remain subdued.
Buyers are expected to take longer in negotiations and will likely express a very selective sentiment when moving forward with purchases.
Do these figures and projections affect your outlook on the Asian luxury housing market? How does this study affect your current housing situation, if at all?
Let us know your thoughts and personal findings in our comment section below.
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