Unsold inventory from new projects placed pressure on the market.
Prices of luxury homes declined by 1.5% in a 12-month period to June amidst higher interest rates on prices, said property analyst, Knight Frank, in a recent report.
It also found that there is an increase in “unsold inventory from newly developed projects has placed further pressure on the market.”
The city also tweaked its financial measures to stimulate demand, increasing the mortgage loan-to-value ratio to 70% for residential properties valued at $15m or less.
“Whilst buyers will likely welcome this change, its ability to significantly boost growth remains uncertain,” said Knight Frank.
In other APAC cities, Tokyo and Manila’s global luxury house prices eased, with a growth of 26.2% and 19.9%, respectively.
Prices in Dubai soared by 225% since reaching a 2020 low in the third quarter of 2020.
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