Tag Archives: Asia

Singapore property tops Hong Kong

Even with an expected 10 to 15 percent drop in sales volumes this year, Singapore’s property market is still expected to perform better than rival Hong Kong because of three main reasons, noted UOB Kay Hian.

Firstly, Boston Consulting Group reported that Singapore has the world’s highest number of millionaire households, with 17 percent of all households having at least US$1 million (S$1.25 million) in private wealth.

Singapore also has the world’s fourth highest and is number one in Asia in terms of GDP per capita, at around US$59,711 (S$74,462) per person, exceeding Hong Kong’s GDP per capita of about US$49,137 (S$61,284) per person.

“With a lack of better alternative investment vehicles in Singapore, we believe property will continue to remain a favoured investment asset class among rich Singaporeans,” said UOB Kay Hian.

Secondly, the city-state’s 89 percent home-ownership rate, compared to Hong Kong’s 30 percent, enables the government to adjust policy measures in case of a sharp decline in prices.

“With the bulk of the population owning their own properties and staying in public housing, we believe the government’s objective is to maintain stable property prices in line with the country’s long-term GDP growth and not see a sharp decline in housing prices as this will adversely impact economic growth.”

“Thus we believe the government can tweak policy measures to support property prices in case of a drastic price fall,” UOB Kay Hian added.

Lastly, low unemployment levels and higher median monthly household income expansion will help drive long-term growth in the country.

“The extremely low interest rates and higher-than-expected wage growth in Singapore are likely to be the long-term demand drivers lending stability to the longer-term outlook of the country’s property sector,” said UOB Kay Hian.

Source PropertyGuru – 2012 Jul 30

 

 

 

Top 5 hot markets in Asia

The overall value of prime property in the world’s key cities fell 0.4 percent in the first quarter of 2012, according to a report from Knight Frank due to global economic woes and the implementation of cooling measures in key markets. In Asia, only two cities beat the trend with Jakarta experiencing 14. percent price growth in the 12 month period between March 2011 to March 2012, while Beijing saw prices increase by 2.9 percent in the same period.

If we look back five years however, the picture is dramatically different. Here are the top performing Asian markets based on a five-year change in the Global House Price Index as devised by Knight Frank Research by setting the index at 100 in the fourth quarter of 2007.

Hong Kong saw the biggest increase in the index at 164 in the first quarter of 2012 due to its role as a global economic centre and gateway to China.

India saw the second largest increase, to 159, fuelled by strong demand both from the domestic and foreign markets.

China, unsurprisingly came in on a third place, its index rising around 50 percent to 150. The increase is highly attributed to China’s rise as a global economic powerhouse in terms of trade, commerce and the staggering production of newly-minted millionaires.

Taiwan and Malaysia came in on a shared fourth place in the fourth quarter of 2011 since first quarter results for Malaysia were unavailable. Having both seen their indexes rise to around 124 in the fourth quarter of 2011, it is likely that Taiwan may have overridden Malaysia due to pre-election jittery in the latter market.

Taiwan and Malaysia came in on a shared fourth place in the fourth quarter of 2011 since first quarter results for Malaysia were unavailable. Having both seen their indexes rise to around 124 in the fourth quarter of 2011, it is likely that Taiwan may have overridden Malaysia due to pre-election jittery in the latter market.

Source: PropertyReport – 2012 Jul 19