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Most Europeans prefer to invest nearer home

Posted on 18 Mar 2010 | Comments Off

But for 21% of investors Asia is the target, says survey

European property investors are focusing on opportunities in their region in 2010, with many seeing the rising UK, German and French markets as the most attractive, a CB Richard Ellis survey said yesterday.

Of 271 investors polled, 60 per cent said they were planning to invest in Europe, 21 per cent are looking to Asia, and 12 per cent in North America, CBRE said in the report, released at the MIPIM property trade fair at Cannes, France.

‘This European preference is probably not surprising given that the vast majority of respondents are based in, and predominantly invest within, the region,’ Nick Axford, head of EMEA research and consulting at CBRE, said.

‘However, it is noteworthy that 40 per cent see the best opportunities lying elsewhere, with Asia a clear target for many,’ he said.

Of those investing within Europe, 31 per cent pick the UK as the most attractive market, with France and Germany equally preferred by 18 per cent. Another 17 per cent were looking further east, towards Central and Eastern Europe, the survey showed.

‘As yet, investors see fewer opportunities in the distressed Spanish market, perhaps believing that the window for entering this market will remain open for longer here than elsewhere,’ CBRE said.

Offices are the most attractive target to 39 per cent of investors, while 34 per cent preferred retail properties, in particular shopping centres.

The survey showed more than half of the respondents believed the risk of a ‘double dip’ recession or a weaker-than-expected recovery in occupier demand posed the biggest threats to the property market, CBRE said.

Fears of forced sales by banks and debtors – a key investor concern last year – appears to have ebbed however, it said.

‘Respondents are right not to be too concerned . . . the support . . . from governments and asset protection schemes will help to extend the period over which problem debt can be tackled,’ Philip Cropper, CBRE executive director of real estate finance, said.

Source : Business Times – 18 Mar 2010

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Penang property prices expected to improve

Posted on 18 Mar 2010 | Comments Off

Despite the global downturn last year, the Penang property market has not recorded any significant drop in prices and is expected to improve this year in line with the economic recovery.

Henry Butcher Malaysia (Seberang Perai) Sdn Bhd’s senior manager Fook Tone Huat said that development land, especially in Seberang Perai, was still in good demand, particularly near town areas.

‘Although many projects were deferred last year, we are confident that the worst is over and public confidence has begun to come back in the property market,’ he said at a media briefing on the property market in Seberang Perai here yesterday.

The Seberang Perai area is expect to record a 10 per cent increase in appreciation rate due to its high population density compared to neighbouring states like Kedah and Perak, Mr Fook said.

He said that development land in Seberang Perai was two times larger than land in Penang island. ‘The lack of land for development has caused properties in Penang island to be about 40 per cent higher than those in Seberang Perai,’ he said.

According to Mr Fook, now is the time for the public to purchase properties as the base lending rate (BLR) is still below 6 per cent. ‘As long as the BLR is below 6 per cent, it would not affect the number of purchasers in the property market,’ he said.

On the outlook for 2010, Mr Fook said that the residential sector will still be the main player in the property market in Seberang Perai. As for commercial properties, he said Bandar Sunway in Seberang Jaya will continue to be the prime hotspot and there is potential for new shop/office development in the area.

Source : Business Times – 18 Mar 2010