KUALA LUMPUR: Residential property prices in Dubai have shown an increase of close to 1% for property prices over 4Q compared with 3Q, according to Colliers International Dubai House Price Index for 4Q2009.
The index registered price rise in townhouses (10%) and villas (7%). Prices for apartments however, decreased by 4%.
Meanwhile the number of transactions declined by 15% in 4Q2009 compared with 3Q 2009. Of the transactions, apartments constituted 48%, villas 35% and townhouses 17%.
The price rise over the last two quarters -- 7% in 3Q followed by the recent 1% in 4Q -- seems to indicate that market prices have reached resistance levels to severe fluctuations, and that the current prices may be reaching underlying market values, said Colliers.
However, Colliers cautioned that even though the market appears to have reached an overall level of stability over the past two quarters, there are still a number of factors to be considered.
Different property types continue to show variance in performance from month-to-month and quarter-to-quarter as the market continues to cope with influencing factors.
One factor is the availability of finance for a specific sector, which in turn stimulated demand for properties in these sectors.
Purchaser sentiment is another factor as it was in December 2009 when news of the Dubai debt crisis broke.
The market is also impacted by the on-going variance in supply within the three main property segments.
Colliers also noted that as with any other market, there is a price differential between completed properties that are occupiable and properties that are still under construction or in the planning phase.