By Andy Sambidge
UPDATE 2: Asteco says transactions increased in H2 as mortgage market picks up.
Sales prices for apartments and villas in completed developments across Dubai stabilised towards the end of 2009, according to a new report published on Wednesday.
Property services company Asteco said the latter half of 2009 also saw an increase in transaction activity as the economy picked up and mortgage availability improved.
Of all the developments monitored, Palm Jumeirah fared best as it was able to hold values, the company said.
“Lifestyle communities are weathering the storm and the Palm Jumeirah is an iconic development and, with continuous improvement of infrastructure and completion of residential and hotel developments, has become a sought-after destination,” said Asteco CEO Elaine Jones.
Other areas identified by Asteco as continuing to generate interest throughout 2009 include Downtown Burj Dubai, Dubai Marina, Jumeirah Beach Residence, Springs and Arabian Ranches.
In 2009, the average sales price in Dubai stood at AED950 per square foot for apartments, down 16 percent since the first quarter, and AED1,000 per square foot for villas, down 9 percent since the start of the year.
Business Bay and International City saw the largest decrease in apartment sales prices since the first quarter, having fallen 23 percent, Asteco added.
Green Community and Palm Jumeirah prices remained stable with no change since the beginning of the year.
In the villa market, Jumeirah Park experienced the highest drop in sales value since Q1 2009 at 34 percent, followed by Arabian Ranches (29 percent).
Palm Jumeirah and Springs recorded positive growth with 20 and 21 percent respectively, the report added.
Dubai rental rates have declined by 24 percent for apartments and 18 percent for villas on average across the year of 2009, according to Asteco.
Compared with Q3 2009, the decline in rental rates slowed in the last quarter with overall decreases of 2 percent for apartments and 1 percent for villas. “Sought-after developments include Downtown Burj Dubai, Palm Jumeirah and Dubai Marina as well as Arabian Ranches and Springs as they offer residents an abundance of retail and leisure facilities and are in prominent locations,” the report said.
These guys have to learn that this type of spin does not change the facts on the ground, just saying things are improving does not actually help them improve, on the contrary it adds to the mstrust in the market place. I appreciate the real-estate guys are in a horrible position, but you need to be credible if you are to maintain respect and stay around for the long term when the market activity starts to improve.
Dear Don, Could you please be more specific? Exactly what spin are you referring to? The author has given specific numbers for specific neighborhoods and property types. Do you disagree with him? (what are the facts from your point of view?)
one day the media and the people giving the information could try and become uniform in their statements. today market is stabilised, yesterday there was still 20% drop to come, what tomorrow ? i know, we are the bottom and the only for the market is to boom again !!!!! pls people liaise with yourselves in the housing industry and print something that is actually somewhere neat reality for the market and not just for your own company.
The only figures i could use here refer to the square feet price. There are mentions to changes in apartment price but it does not say at any point if the units are comparable (you may have moved from selling smaller to bigger apartments) and there are no numbers giving both number (and type) of transactions and prices. Maybe the original report provides this info, but from the summary we see I would side with Don on this one. RE is short on credibility, they should be putting much more detailed figures if they want to avoid suspicions of spin.
I cant see the spin either. the article talks about the decreases and some increases, which if you've been in Dubai for some time, actually makes sense. if you look at some properties that are popular, then obviously, they are going to increase. it's the basic fundamentals of supply and demand. (and location, location, location) I've seen their previous reports and they usually are consistent by showing a breakdown of the areas in Dubai. they aren't, if you think about it, going to put the whole report in the paper are they?? derrrrr!
Ahmad, did you hear about the guy who drowned in a lake that was on average only 50 cm deep ?
as i said maybe the report is ok, i can not say as i have not read it. My point, and is a valid one, is that giving a change in "average flat price" means nothing without knowing i) if the type of flats we are comparing are the same kind, and ii) size of the sample. You may be talking about a period in the market when most of transactions were 1br vs a period where transactions were for 2-3br. You may be talking about an increase on prices based on maybe 10 operations... i do not know, i can not know from the figures presented here and I have nto read the full report. Maybe you have, then it would be great if you could put some extra detail, for example explaining one of the areas on greater detail.
For those who don't quite understand Telco Guy's argument, look up "Simpson's Paradox." At least press releases from Landmark et al actually describe their samples to give the numbers some context. Otherwise they'd elicit as much confusion as Asteco does.
You can read the AB article from UAE Investments co printed the same day. http://www.arabianbusiness.com/578712 Maybe Telco Guy and Don are right on this point.
this came in my inbox earlier and it's the actual press release http://www.zawya.com/story.cfm/sidZAWYA20100113100332/Dubai%20apartment%20and%20villa%20prices%20stable%20at%20year%20end The article in AB is a simplified version. I guess you can't always believe what you read.