Daily Archives: 24 Sep 2009

US commercial real estate prices resume slide in July

Posted on 24 Sep 2009 | Comments Off on US commercial real estate prices resume slide in July

US commercial property prices renewed their steep decline in July as sector prices were down nearly 39 per cent from peak levels two years ago, said Moody’s Investors Service in a report. Moody’s/REAL Commercial Property Price Index (CPPI), released on Monday, showed its 10th consecutive decline in the index with a sharp 5.1 per cent drop in July.

Prices in office, retail and apartment properties had eased to 0.1 per cent in June, but reversed course in July to remain more in line with earlier slides of 7.6 per cent in May and 8.6 per cent in April.

After its latest decline, the CPPI index now stands 30.8 per cent below its year-ago levels and 37.5 per cent below the level seen two years ago. Overall, commercial property prices have now declined nearly 39 per cent since the peak of October 2007, Moody’s said.

The US$6 billion US commercial real estate market is a key focal point for the Federal Reserve and US lawmakers who have pegged it as a particular danger to the nascent economic recovery. Programmes aimed at reviving lending are just getting underway, but the efforts are complicated as falling revenue and prices are reducing value of the properties and causing defaults. Continue reading →

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Malaysian market picking up

Posted on 24 Sep 2009 | Comments Off on Malaysian market picking up

To some, the fact that the wealthy are once again putting their money in real estate is a sign the market is on its way up, reports PAULINE NG

WHETHER it was the triple 8 that did it, I&P’s launch of 80 link houses on August 8 in Bandar Kinrara Puchong in the Klang Valley was a sell-out – in three short hours. Of course, the value-for-money proposition for its link houses proved irresistible to house buyers, some of whom, according to reports, had started queuing on July 29, more than 10 days earlier. Many jumped at the pricing for the units with built-up areas of 2,151-2,551 sq ft. Priced at around RM460,000 (S$187,081) – by some estimates a discount of nearly 20 per cent – house buyers obviously thought it was too good a deal to miss.

Price revisions appear to have done the trick for a number of developers in Klang Valley and Penang which have recently seen good take-up rates for new and older launches. Inquiries have picked up noticeably, property consultants say, with attractive financing packages and discounts initially stemming the slide, but now providing some momentum.

One developer launching service apartments in the trendy area of Sri Hartamas next to Mont Kiara recently advertised its terms: RM15,000 downpayment on signing, zero interest during construction, no legal fees for the loan or agreement, and guaranteed returns of 6 per cent for two years. Continue reading →

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