A decade after the 1997 Asian Crisis erupted, most housing markets in Asia are well on their way to recovery, according to new research from Global Property Guide...

Boosted by strong economic growth and strong local and international demand, residential real estate prices in the Philippines, Singapore and South Korea rose by more than 10% in nominal terms y-o-y to Q1 2007.

In Hong Kong, after registering price falls in early 2006, the over-all residential price index is back in positive territory. The index rose 5.2% y-o-y to March 2007. However this is significantly lower than the annual price increases to the first quarter of 2005 and 2004, at 21% and 28%, respectively.

Weak economic growth and high inflation are still weighing down on Indonesia’s real estate market, although conditions are much better now. Meanwhile, political uncertainties in Thailand have led to a continued decline of the house price index.

Deceptive figures

National figures can be deceptive. Luxury condominiums in prime centres of Hong Kong, Bangkok, Kuala Lumpur and Jakarta have been appreciating strongly, despite bleak national house price figures.

Residential condominium prices in Hong Kong, Singapore and Tokyo are still the most expensive in Asia, topping US$10,000 per square metre (sq. m.). On the other hand, luxury condos in Jakarta’s central business district cost around US$1,200 per sq. m., according to Global Property Guide research.