Jakarta Is World’s Hottest Luxury Property Market Jason Chow The Wall Street Journal February 13, 2014 8:58AM Jakarta’s luxury real estate market is once again the hottest in the world, according to a study by real estate firm Knight Frank. In recent years, Jakarta has been inundated with the most luxurious world class hotels and residences namely [U]the Waldorf-Astoria, Conrad, St. Regis, Westin, Luxury Collection by Starwood, Raffles, Rosewood, Langham, the W, Fairmont, the list goes on and on. Jakarta has established itself to be Southeast Asias largest luxury destination. According to Knight Frank’s Prime Global Cities Index, which tracks luxury real estate markets in 30 cities around the world, prices for top homes in the Indonesian capital rose more than in any other city, up 37.7 per cent at the end of 2013 from the year before. Liam Bailey, Knight Frank’s global head of residential research, cited “very limited supply” and “very strong” demand as factors driving Jakarta’s high luxury property prices, “even if the Indonesian economy isn’t as strong as it was maybe two years ago.” It’s the second year in a row Jakarta has topped the list. In 2012, the city saw its upper echelon of homes jump 38 per cent in price from 2011. The increase in Jakarta was more than double the price rise in second-ranked Dublin (17.5 per cent) and Beijing (17.1). Ranking No. 4 and 5, respectively, were Dubai (17) and Los Angeles (14). The brokerage firm, which released its quarterly update on Tuesday, defines “prime real estate” as homes that were sold in the top five percentile in terms of value. The only Australian city in the list is Sydney, at 10th (9.3). Singapore and Hong Kong, which were hot real estate markets in Asia just three years ago, have cooled thanks to government measures, such as higher stamp duties, intended to restrict speculation and foreign buying. Specifically, these measures have “impacted the flow of Chinese money coming into those markets,” Mr Bailey said. Those two markets saw slight decreases in 2013 - Singapore was down 0.8 per cent and Hong Kong declined 2.2 per cent. Among the global financial centres, New York ranked No. 9 (10.4) and London ranked No. 12 (7.5) Which way is the global real estate market heading in 2014? Look to London, Mr Bailey said. “It’s the bellwether. Price growth is strong but it’s going down. We’re seeing the effect of the fear of rising interest rates,” he said. See the full list of the 30 cities in the Knight Frank Prime Global Cities Index, ranked by price increases in last quarter of 2013, year on year. Knight Frank Prime Global Cities Index 1. Jakarta 37.7% 2. Dublin 17.5% 3. Beijing 17.1% 4. Dubai 17.0% 5. Los Angeles 14.0% 6. Tel Aviv 12.7% 7. Bangkok 12.3% 8. San Francisco 10.4% 9. New York 10.4% 10. Sydney 9.3% 11. Tokyo 7.9% 12. London 7.5% 13. Shanghai 7.3% 14. Monaco 6.0% 15. Vienna 5.5% 16. Kuala Lumpur 5.5% 17. Vancouver 5.3% 18. Madrid 5.0% 19. Nairobi 4.9% 20. Miami 4.3% 21. Mumbai 3.0% 22. Moscow 2.1% 23. St Petersburg 0.6% 24. Cape Town 0.2% 25. Rome 0.0% 26. Singapore -0.8% 27. Zurich -2.0% 28. Hong Kong -2.2% 29. Paris -4.0% 30. Geneva -8.0%
Posted on: Tue, 18 Feb 2014 02:36:30 +0000
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