Cooling measures continued to be introduced by various governments across Asia over the first three months of the year in order to rein in surging property prices in the region, it has been suggested.
The latest analysis from CB Richard Ellis found that luxury residential values on the continent increased by 5.5 per cent quarter-on-quarter in the first three months of 2011. Hong Kong and Guangzhou, in particular, saw accelerated growth in luxury property prices.
In Hong Kong prices jumped 14 per cent over the period, while in Guangzhou a number of high quality projects were launched that pushed overall prices higher.
The report details the effects of recent cooling measures. In China, price growth began to slow after restrictions were put on property purchases by non domestic buyers and existing home owners. A property tax on second homes in Shanghai and Chonqing also contributed to lower prices.
Looking ahead demand in the region is expected to remain strong. "However, it is likely that demand will be suppressed by a new round of cooling measures introduced by authorities in Greater China and Singapore," the report says.