DUBAI: Dubai property prices dropped 23 per cent last month from a record high in September after banks cut lending and sellers offered discounts as a result of the global economic slowdown, according to an HSBC Holdings plc survey.
The average price of villas in Dubai fell 30 per cent and for apartments 20 per cent from September, according to the survey, which for the first time captured actual real-estate transaction prices in Dubai.
Developers in Dubai have cut jobs and cancelled projects to cope with a slowdown in demand and credit shortage after more than one trillion dollars in worldwide writedowns and losses at financial institutions.
Since the September high, "the discount of agreed to advertised prices has deepened, indicating market distress," HSBC analysts including Majed Azzam and David Lepper said in the report released yesterday.
"Early 2009 data suggests further weakness," the report added.
The bank added that fourth-quarter real-estate sales volume, however, showed a healthy trend with 5,800 transactions booked, 226 per cent more than for the same period a year earlier.
The bank recorded 1,782 transactions in the first two weeks of January, or 6 per cent more than for all of December and 175 per cent more than from December 2007.
By Bloomberg
Thursday, January 22, 2009
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The average price of villas in Dubai fell 30 per cent and for apartments 20 per cent from September, according to the survey, which for the first time captured actual real-estate transaction prices in Dubai.Developers in Dubai have cut jobs and cancelled projects to cope with a slowdown in demand and credit shortage after more than one trillion dollars in worldwide writedowns and losses at financial institutions.
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