Prime property prices in Bangkok were, again, static during the three months ending September 2018, and failed to show any increases from Q2.
The Knight Frank Global Residential Index for Q3 2018 showed no growth in prices in the top 5 percent of the Bangkok property market quarter-on-quarter. Year-on-year there was a 1.1 percent rise in Bangkok’s prime property prices.
This ranks Bangkok’s prime property market as one of the poorest performers in this particular research.
Regionally, Singapore and Jakarta were ranked higher in terms of year-on-year growth in their prime property prices, while Kuala Lumpur’s 0.7 percent year-on-year growth saw it ranked just below Bangkok.
In the last year, the price of a luxury property increased by 2.7 percent on average across the 43 cities tracked.
This represented the Index’s weakest performance in annual terms for almost six years.
Singapore lead the Index with prime property prices up 13 percent over the 12-month period, driven by the limited availability of prime properties and a strong market outlook during the first half of 2018.
Hong Kong and Singapore, Asia’s two premier cities, have traded places in the last year.
Both cities saw cooling measures introduced during the summer months and, although the rate of annual price growth in Hong Kong has already slowed to 5.5 percent, Singapore may not be far behind with its quarterly growth weakening to 1.7 percent during the third quarter.
The overall narrative of lower growth, which Knight Frank had predicted last year, has now materialised.
Growth rates have declined for three consecutive quarters, and are now reaching their lowest rate since Q4 2012.
A combination of uncertainty surrounding Brexit, rising interest rates across major economies, a tighter regulatory environment and the remnants of high supply in some markets is impinging on price growth, the real estate firm reported.