Dubai to lead world price increases
Prime property prices in Dubai are predicted to be the best performing in 2014, according to predictions from Knight Frank in its Prime Global Forecast residential report.
Homes in the emirate are expected to rise by between 10 percent and 15 percent this year, despite the introduction of new measures designed to curb rising property prices, which rose by more than 20 percent last year. That trend looks set to continue.
Knight Frank reported that in the last quarter of 2013, Dubai saw a doubling in the transfer fee to four percent, mortgage caps for expatriates and locals, as well as Emaar, a part state-owned developer, banning real estate agents from selling on off-plan property before completion.
All of this has come into play in order to ease residential price growth in the emirate, which so far this year has been running at a rate of 18-22 percent year-on-year.
Although there are signs that transaction volumes have fallen back since the introduction of these measures – which should dampen the quarterly rate of increase in the final three months of this year – the agency suspects that price growth will quicken again in the early part of 2014.
In Singapore, where Knight Frank expects a decline in prime property prices of more than five percent, it said: “There is a real chance that some cooling measures could be lifted in 2014.”
It added: “Due to the existing cooling measures – in particular the hike in Additional Buyer’s Stamp Duty, stricter limits on borrowing and the muted equity market performance – the high-end private residential market in Singapore will see prices decline by one – two percent in the first half of 2014.”
“However, lower prices may lead to strengthening demand in the second half of the year, with prime residential properties in popular areas such as Districts 9 and 10 generating greater interest.”
“Singapore continues to be one of the favoured choices for property investment amongst high-net-worth individuals. Many value the country’s stable economic fundamentals and political system, and its safe haven status in terms of cross-border liquidity, preservation of wealth and property ownership rights.”