Expatriates living in Asia can expect property prices to become even higher according to international property experts Knight Frank.
Recent research into property prices across Asian cities indicates that the most popular expat destinations will continue to see rising property prices in 2013, with prices in some cities expected to rise by as much as 20 percent.
According to Knight Frank, cities such as Bangkok and Jakarta will see significant increases with the governments in Thailand and Indonesia actively encouraging foreign investment. However, the opposite is true in Singapore and Hong Kong, with increased stamp duties being leveraged on foreign buyers in these popular cities in a bid to control rising property prices.
Discussing the expected price increases, Nicholas Holt, Asia Pacific research director for Knight Frank, said: “The possibility of further government intervention to reduce house price inflation in these times of low interest rates is likely to remain, posing a risk to several residential markets over the next 12 months.”
Elsewhere China has seen steady growth in the number of foreigners who are purchasing property and are subsequently expecting price increases of between 5 and 15 percent over the forthcoming year. However, these trends may not be extended to Shanghai: “Shanghai is probably more sensitive to the economic and financial markets, while Beijing will see the opening of a number of new metro lines in 2013,” Holt disclosed.
While prices may be on the rise, Knight Frank warns that this may not be across the board and warns expatriates against purchasing property in Vietnam. According to their analysts, the value of properties in Ho Chi Min City could fall by between 5 and 10% in what could be “another tough year” for Vietnam.