Tag Archives: China

Commercial property boom in Asia-Pacific

Posted on 27 May 2011 | Comments Off on Commercial property boom in Asia-Pacific

Commercial property leased out by investors in the Asia-Pacific, or invested stock, increased 14 per cent last year, displaying the region’s flourish while markets in Europe and the United States languished, according to the yearly Money into Property report by real estate consultancy DTZ.

The Asia-Pacific’s invested stock is also forecast to match current global leader Europe’s level by rising to US$4.4 trillion (S$5.47 trillion) by next year, after taking the place of the US as the world’s second-largest commercial property market this year, DTZ said.

The Asia-Pacific region’s growth has been led by China and Australia, which reported gains of 25 and 24 per cent, respectively, last year. Overall transaction levels in the region rose to US$158 billion last year, indicating increasing development activity and rising capital values. Global investment volumes were up 76 per cent at US$342 billion – the highest since 2007. DTZ also forecast global investment volumes to increase 9 per cent this year.

Mr David Green-Morgan, DTZ head of Asia Pacific Research, is optimistic about the region. “We expect Asia-Pacific’s momentum to continue on the back of strong economic growth, lack of legacy debt issues and strong investor interest.”

Liquidity in the Asia-Pacific commercial property market continued to grow last year. The amount of private debt funding such investments grew 17 per cent to US$257 billion, while private equity funding grew 13 per cent to US$139 billion. However, DTZ said rising interest rates may make bank loans less popular.

“On the debt side, some of the government policy will reduce the amount of debt going forward, for the growth of private debt in particular. Also some of the debt is being priced higher now and becomes less attractive,” said Mr Hans Vrensen, global head of research at DTZ.

“But there’s a lot of development still in the pipeline. You are not going to stop building a building. People will continue to deliver these properties to the market and that is a big momentum that the Asia-Pacific has,” said Mr Vrensen.

Source : Today – 27 May 2011

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Posted in Office / Retail / Industrial, Overseas Property

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Asian luxury property prices rise slowly in first quarter

Posted on 12 May 2011 | Comments Off on Asian luxury property prices rise slowly in first quarter

Values of luxury residential properties across Asia continued to slowly rise in the first quarter of 2011. As with the last quarter of 2010, values rose 1.8 per cent, according to Residential Index data from Jones Lang LaSalle.

This is a slowdown from the hectic third quarter of 2010, when prices grew by 7.4 per cent.

The cooling pace comes after various governments enacted anti-speculative measures in 2010.

The index data comes from monitoring major Asian centres including Hong Kong, Beijing, Shanghai, Singapore, Bangkok, Kuala Lumpur, Jakarta and Mumbai. Of these cities, only Kuala Lumpur residential prices showed a slight drop in value of 1.1 per cent over the first quarter, while capital values in Hong Kong showed the greatest increase at 8.3 per cent.

On the Chinese mainland, sales were quiet over the first quarter after new rules were introduced to curb the hot market. Bans on new purchases from owners who already have two apartments and a pilot property tax kept first quarter price increases in Beijing and Shanghai relatively minor at 3.2 per cent and 0.4 per cent respectively.

Despite the current restrictions in China, Chinese buyers will likely still have an effect on other markets within Asia. “The growing pool of high net-worth individuals from mainland China will not only lead to a structural change in buyers’ profile in Hong Kong’s luxury residential market, but will also gradually raise demand for high-quality residential properties in other Asian cities, where the investment environment and social infrastructure are good,” said Joseph Tsang, managing director and head of capital markets at Jones Lang LaSalle, Hong Kong.

Residential prices in China are expected to remain stable or decrease slightly in 2011 due to probable price reductions by developers, and the introduction of fewer high-valued units.

Meanwhile, strong end-user demand and long-term investors will likely see the luxury markets in Hong Kong and Singapore increase in strength.

Source : PropertyReport – 12 May 2011

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Posted in Luxury Property, Property Market / Real Estate

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