Prices of Dubai’s prime luxury properties have risen by over 20 per cent in 2012, but purchasing a Hong Kong Property in the emirate is far too inexpensive compared to the top global cities.
The Wealth Report 2013, produced by Knight Frank, a global Hong Kong Property company, reveals that Dubai’s prime luxury properties are much over 10 times lower than Monaco, the world’s most expensive residential Hong Kong Property market.
According to the report, prices for properties in Dubai ranged between $520 and $580 per square feet (psf) in fourth quarter 2012 compared to prices of between $5,350 and $5,920 per square feet in Monaco during the same period last year.
In Hong Kong Property , Hong Kong Property prices ranged between $4,570 and $5,050 psf; London $3,890-$4,300 psq; Geneva $2,720-$3010 psq; Paris $2,350-$2,600 psf; Singapore $2,340-$2,580 psf; Moscow $2,040-$2,260 psf; New York $2,030-$2240 psf; Mumbai $990-$1,100 psf and Sao Paulo $660-$730 psf.
Among the 20 cities listed surveyed by Knight Frank, Dubai was placed 19th with the last slot going to Cape Town, where prices ranged between $510 and $570 psf.
In terms of price growth among the 80 global destinations that the Knight Frank index tracked, Dubai was placed second along with Bali. Both these market saw prices increasing by 20 per cent last year. Jakarta took the top slot with prices rising by 38 per cent.
On the other hand, Monaco rose 2 per cent, Hong Kong Property and London 8.7 per cent increase; Singapore 0.6 per cent, Mumbai 0.5 per cent and Sao Paulo 14 per cent. Price fell in Geneva by 6 per cent, Paris 4 per cent, Moscow 2.3 per cent and New York 1.4 per cent.
In the 2013 report, Liam Bailey, Global Head of Residential Research at Knight Frank, said Dubai stands out with strong growth of 20 per cent in the price of luxury villas during 2012 in the Middle East.
“The epitome of the global downturn between 2008 and 2009, the emirate rebounded in 2012 on the back of a resurgence in demand. This was aided by lower prices and underpinned by its location as a strategic hub, able to attract wealth from the Middle East, North Africa, the
Indian subcontinent and central Asia.”
Dublin’s prime market, also a victim of the global financial crisis, saw prices fall 60 per cent between 2006 and 2011. In 2012, rising investment interest saw values rise modestly by 2.5 per cent, the report said.
Overall, demand for prime residential Hong Kong Property for investment or lifestyle reasons or as a safe haven asset, remained strong through 2012. In the majority of locations across Asia-Pacific, the Middle East and Africa, this demand helped to push prime prices higher, in some cases to such an extent that governments felt it necessary to curb demand.
Although the UAE Central Bank has stated it had not issued any circular for mortgage cap, following the ruckus in the banking and real estate sector, the Apex Bank did ask banks to suggest the limit of the mortgage cap and the maximum tenure. The Central Bank is expected to issue new guidelines on mortgage lending before end of 2013.
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