Prices hold ground despite market turbulence 2019 provided the Asia-Pacific residential markets a tough operating environment given the global macro economic uncertainty, but this was balanced by falling interest rates and policies aimed at supporting the affordable market. Among the 27 regional residential indices tracked by this report, 67% or two thirds reported positive annual price growth in the second half of 2019. 

Southeast Asia

Kuala Lumpur’s residential market corrected -2.9% year-on-year in H2 2019 compared to -1.2% six months prior. However, with the government actively supporting the residential market such as the recent reduction of the foreign buyer price threshold from RM1 million to RM600,000 for unsold high-rise units in urban areas and shifting of the RPGT base year to stimulate the secondary market; we believe Kuala Lumpur’s residential sector has bottomed and we could see a slow recovery within this coming year.

Residential prices in Jakarta continues to steadily improve with prices rising 1.4% year-on-year in Q3 2019, slightly slower compared to the 2.0% rise witnessed six months prior. Nonetheless, our expectations are for the market to record a firmer recovery in 2020 as pent up demand is released post the 2019 elections led by the low to mid segment.
Furthermore, transport-oriented developments are expected to outperform following the completion of the first phase of the MRT as the market experiences the benefits of being near good transport networks.