{"id":2204,"date":"2016-01-21T23:21:26","date_gmt":"2016-01-21T16:21:26","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=2204"},"modified":"2016-01-21T20:26:16","modified_gmt":"2016-01-21T13:26:16","slug":"dubai-villa-oversupply-leads-to-18-drop-in-prices-at-the-springs","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-villa-oversupply-leads-to-18-drop-in-prices-at-the-springs\/","title":{"rendered":"Dubai villa oversupply leads to 18% drop in prices at The Springs"},"content":{"rendered":"


\n
\nSale prices of villas at The Springs community in Dubai have dropped by 18 per cent over the past year as buyers have opted for cheaper, newly completed stock in secondary communities such as Jumeirah Village Triangle and Al Furjan, according to Cavendish Maxwell.The company\u2019s Q4 2015 Dubai residential market report found that across Dubai, villa prices declined by 8 per cent year-on-year \u2013 a faster rate than the 6 per cent fall in apartment prices because of the increase in new stock. The Springs, a master planned community by Emaar Properties, was the area which experienced the steepest price decline, followed by neighbouring The Meadows (12 per cent) and Jumeirah Village Triangle (10 per cent).
\nIn the apartments market, areas which where there were above average declines included Motor City (10 per cent), International City (9 per cent) and Discovery Gardens (9 per cent).The report also highlighted project delays, with only 8,800 of an anticipated 15,800 homes completed during the year. Alongside the 7,000 delayed properties, some 30,000 homes are scheduled for completion in 2016 \u2013 30 per cent of which are villas. However, it is expected that many of these are also likely to be pushed back as a result of current market conditions.
\nDima Isshak, a research manager at Cavendish Maxwell, said: \u201cAs prices declined during 2015, there was a slight shift in new buyer demand towards secondary locations such as JVT, Green Community and Al Furjan, as buyers were looking for more value for their money.\u00a0 \u201cAdditionally the off-plan villa supply alongside the payment plans and incentives offered by developers has also attracted buyers, leading to limited activity in the secondary market.\u201d
\nShe said it was evident that the construction industry has been affected by the decline in oil prices, and with house prices and transactions falling, many developers are postponing completions and reassessing their portfolios.\u201cWe have seen very few launches in the second half of the year,\u201d said Ms Isshak.In Abu Dhabi, prices fell at a lower rate \u2013 4 per cent for villas and 3 per cent for apartments \u2013 because of the lower levels of stock. Rents also remained stable, with villa rents actually increasing in areas such as Saadiyat Beach Villas, where supply remains tight.
\nThe Big Four accountancy firm Deloitte said villa prices declined by 10 per cent and apartment prices by 9 per cent in 2015, but said the steepest declines were in JBR (down 15.8 per cent) and Downtown Dubai (15.1 per cent). It said the drop was partly a reaction to exceptional price growth in the two previous years, negative sentiment surrounding the oil price and currency fluctuations, making property more expensive for buyers from key source markets in India, the UK and Russia. It expects rents to soften in the year ahead, but said that this \u201cwon\u2019t be to the same degree\u201d as recent price declines.
\nThe Deloitte corporate finance managing director Robin Williamson argued that in the long run, Dubai still offered investment potential.\u201cDespite the decline in average residential sales prices in Dubai during 2015, price growth over the last four years reflects a compound annual growth rate of 11.6 per cent, which outperforms other leading global cities such as London, Paris and Singapore.\u201dDeloitte said that although published pipeline forecasts suggest 40,000 new homes will be delivered this year, consultation with \u201ckey developers\u201d suggested this figure would be nearer 10,000.
\nmfahy@thenational.aeFollow The National\u2019s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Dubai villa oversupply leads to 18% drop in prices at The Springs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Sale prices of villas at The Springs community in Dubai have dropped by 18...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-2204","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-zy","jetpack-related-posts":[{"id":24609,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-house-prices-move-into-positive-territory-for-first-time-in-two-years\/","url_meta":{"origin":2204,"position":0},"title":"Dubai house prices move into positive territory for first time in two years","date":"September 1, 2016","format":false,"excerpt":"\r House prices in Dubai moved into positive territory for the first time in two years in the second quarter, according to Core Savills.The property consultancy said that after seven consecutive quarterly declines, Dubai's residential sales market witnessed a 1 per cent marginal quarter-on-quarter growth in the three months to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":43955,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/falling-dubai-housing-rents-to-come-under-further-pressure-this-year\/","url_meta":{"origin":2204,"position":1},"title":"Falling Dubai housing rents to come under further pressure this year","date":"February 13, 2017","format":false,"excerpt":"\r Housing rents in Dubai fell during the final quarter of 2016 and look set to come under further pressure this year.According to property broker Asteco, average apartment rents in Dubai fell by 5 per cent in the final three months and ended the year an average of 6 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4017,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-house-prices-to-fall-further-but-at-a-slower-rate-than-last-year\/","url_meta":{"origin":2204,"position":2},"title":"Dubai house prices to fall further, but at a slower rate than last year","date":"February 7, 2016","format":false,"excerpt":"\r \r House prices in Dubai are likely to fall further this year, but at a slower pace than in 2015 even as further supply comes on to the market, according to Asteco.The property consultancy's fourth-quarter report for Dubai and the Northern Emirates stated that villa prices fell by 11\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4019,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-house-prices-to-fall-further-but-at-a-slower-rate-than-2015\/","url_meta":{"origin":2204,"position":3},"title":"Dubai house prices to fall further, but at a slower rate than 2015","date":"February 7, 2016","format":false,"excerpt":"\r \r House prices in Dubai are likely to fall further this year, but at a slower pace than in 2015 even as further supply comes on to the market, according to Asteco.The property consultancy's fourth-quarter report for Dubai and the Northern Emirates stated that villa prices fell by 11\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17230,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sales-of-prime-villas-on-dubais-palm-jumeirah-fall-44-per-cent\/","url_meta":{"origin":2204,"position":4},"title":"Sales of prime villas on Dubai's Palm Jumeirah fall 44 per cent","date":"June 21, 2016","format":false,"excerpt":"\r The number of the most expensive villas sold on Dubai's prestigious Palm Jumeirah fell by nearly half in the first six months of 2016 compared with a year earlier as sellers shied away from marketing property in a falling market.According to property broker Core, an associate of Savills, transaction\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35044,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/demand-for-dubai-luxury-property-dips-recovery-not-expected-until-2017-says-cluttons\/","url_meta":{"origin":2204,"position":5},"title":"Demand for Dubai luxury property dips; recovery not expected until 2017, says Cluttons","date":"November 20, 2016","format":false,"excerpt":"\r The market for luxury property in Dubai continues to weaken as the number of high-level jobs has declined, with prices for Burj Khalifa apartments 15 per cent lower year-on-year and prices at Palm Jumeirah falling by 12 per cent, according to Cluttons.The fall at the top end of the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/2204"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=2204"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/2204\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=2204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=2204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=2204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}