Industry News (Apartments & Offices Worldwide)

Property Investors Find Opportunities in Hong Kong Property Market

2009-07-06T04:14:00.000-07:00

Almost as definite as the moon appearing from west following the sun disappearing from west, the thriving Hong Kong property market has chased the fall in the economic markets. Purchasers, earlier developed by their benefits in the stock market, are trying to stay away. Real estate investors, a lot of the entrepreneurs, on the whole, are no longer going after prices for a rapid turn over. A lot of them are trapped with loans that they find hard to pay - a condition made much of poorer quality with property deflation. A lot of property developers have also been weighed down with projects with no purchasers, at the same time as servicing increasing interest expenses. Building contractors, who depend mostly on the property market for business, are also in a poor condition.

Actually, emergency present investors with various prospects. There is no contradiction in the statement that the current attitude for Hong Kong financial system and property market is gloomy. Worries remain as to when the worldwide financial recession will fade away.

Hong Kong private property prices, for instance, had gone down by nearly 20% from its recent maxim point attained during the first half of 2008. This was subsequent to a thrilling 31% gain between 2007 and 2008, encouraged by a thriving stock market and buoyancy over Hong Kong’s predictions as a universal hub for the rich to live, work and play. Across the region, real estate prices in a range of sectors – residential, industrial, commercial, office, have all deteriorated considerably.

At the same time as the recession works its way out, prospects are plentiful for both retail and institutional property investors are ready to look ahead of the recurring nature intrinsic to property markets.

Property Investors Arriving With Fresh Approach

2009-07-06T04:11:00.000-07:00

Compared to the Asian economic recession that happened just ten years ago, when extensive social turbulence happened and where even governments were brought down, Asian financial systems of today, stimulated by the slump like a changed animal. Asia is now quite stronger. However essential reforms were put into practice, which has facilitated Asia, on a strong footing, to resist financial and economic headwinds, and to make certain speedy revival as soon as the dust settles. A few excellent measures that can be taken are more and more financial and economic regulation across each and every level. Compared to the pre-crisis years, Asian financial systems now have lesser foreign debts and higher foreign assets. Unnecessary investments were restricted and banks, better capitalized.

In addition, Asian financial systems are experiencing huge modifications in their demographics. In a number of countries, the younger populace is increasing in percentage. They stimulate the ranks of a middle class that is keen to spend and improve their excellence of lives. Almost surely, they will be in search of a bigger, enhanced and nicer roof of their own.

Property investors should come to the Asian markets with a fresh approach. In the past, the underlying principle for investing in Asia was to be conveyed by Asia’s strong financial development. On the other hand, as the worldwide financial atmosphere has changed considerably, the dispute now is to recognize and to invest in the best contract among the innumerable strident and dynamic markets.

As the inclination of economic development and urbanization continues in Hong Kong, it will result in increasing earnings, together with demand for enhanced quality accommodation and more classy retail properties. The expansion will not be restricted to the housing sectors. As the Hong Kong economy moves gradually from production- oriented to service-oriented, the demand for high-quality commercial space, that is retail mall and office space, will rise. This will have an optimistic brunt on the value of commercial properties.

Property Experts Are Becoming Buoyant

2009-07-06T04:07:00.001-07:00

One of the major cause of why property experts are becoming buoyant regarding property market is that at the same time as the private sector is reducing it’s rate of spending and investment, governments in various countries are doing just the contrary one, investing a great deal to lift up the drooping. In a general case of pump-priming, a lot of Asian governments have allocated spending on recent leading infrastructural projects or put forward those in progress. These type of activities will encourage the development of the financial system.

This type of local spending will facilitate Asia to decrease its intense dependence on export-driven expansion, and as an alternative, concentrate more on their local and less impulsive markets. Asian governments have put into practice and are continuing to execute measures and regulations that support expenditure, job creation and home possession.

Hong Kong is one of the Asian countries which is spending a lot on infrastructure projects. In 2008, the government awarded deals of value approximately $34.6 billion - a record maximum. Several projects were launched to keep up a secure and balanced pipeline for the domestic construction sector.

On the other hand, not all domestic contractors think that they will stand to expand largely from these government deals, which at times entail big-ticket and precisely challenging projects, necessitating high levels of expertise.

The way to get rid of this is to create continuing joint ventures with the overseas contractors, and in the few years, some movement of technology happens.

Although the main deal may go to overseas contractors, as a rule, it is the practice of the industry to subcontract out all the work in any case. Almost, all subcontractors are domestic firms. As a result, in the end, it will still do good to the entire industry.

Hong Kong Real Estate Sector Likely To Continue In Depression till December 2009

2009-07-06T04:04:00.000-07:00

Real Estate sectors of the entire Asia-Pacific region are likely to continue in depression till December 2009, and large value is likely to get back in most of the markets by 2010.

Property Markets like Hong Kong and Shanghai are like to direct the path, as per some of the significant findings that came out from a recent report.

It has been a tough sell for property all through the current recession, with transaction volumes nearly 50% down in 2008, compared to 2007. The value of property stocks in the area also gone down for the first time after 2001.

The major concern is whether the sector has bottomed out by now.

Property experts say that they are not sure, however, they consider that what is actually the case is that buoyancy has came back in the market and more and more transactions can be observed in the coming 1 to 1 ½ years and ultimately, that will show the way to a rise in the market.

In the Asia-Pacific, Hong Kong’s office market is expected to be the initial one to attain reasonable value where investors will find prospects across the board more willingly than just definite troubled assets.

Market watchers also advise that protected funding is expected to continue as an issue.

As per the recent report, office rental are also witnessing descending pressures. Moving ahead, the Singapore office rentals will undergo the maximum drop in the region for the year 2009, next will be Hong Kong.

One of the causes for this is the supply of fresh office space that is going to appear on-stream in the coming few years, which it believes will inflict a declining, pressure on both rents and capital values. Recovery for all these markets is only predictable in 2011.

Singapore Property Market Revealing Signs of Recovery

2009-07-01T03:17:00.000-07:00

Property experts believe that high asking prices for a few property launches could be an untimely indication that the Singapore property market is recovering after an 18-month depression.

They observed that three project launches in the last month, from suburban mass market to high-end condominium projects, recorded outstanding take-up rates in one or two weeks of their individual launches. This can be accredited to luring economical packages by a few leading property developers.

Giving an impression of the enhanced market sentiment, home loan approvals got better by 89% to RM6.3bil in April 2009, after reaching a lower point of RM3.3bil in January 2009.

Possibly the most convincing case was Eastern & Oriental Bhd’s (E&O) much looked-for launch – the St Mary serviced apartments in the center of the Golden Triangle, which recorded a huge 85% take up rate all through its sample launch on June 12.

This sort of huge take-up is generally visible for landed properties in prime housing areas and not for high-end condominiums in KLCC. At the same time as prices beginning at RM833 per square feet, the major part of the 169 units put forward for its East Tower was sold at more than RM1,000 per square feet.

Property analysts who were present at the launch preview stated that the studio apartments were sold in a few minutes. 85% take up rate is too high to be ignored.

St Mary’s second tower will be launched within the coming six months, at an expected 20% elevated price. Eastern & Oriental Bhd’s is not a remote case.

SP Setia Bhd’s Sky Residence, which is situated nearby the National Heart Institute in Kuala Lumpur, observed a 100% take up rate for its Tower A apartments consisting of around 220 units, selling at an average price of RM680 per square feet. However, Tower B has by now observed a 50% take up rate. These condominiums too, are soon to be officially launched.

Second Quarter Of 2009 Witnessed High Property Investment Sales

2009-07-01T03:14:00.000-07:00

The investment sales of Singapore property market in second quarter of 2009 have reached the mark of $953.9 million, a rise of 248% from $273.8 million in the initial quarter of 2009.

The rise came as housing investment sales grown to four times on the back of a increasing number of high-end condominium sale, a rise in transactions of Luxury Class Bungalows and the attainment of a few small housing sites.

Investment sales are a measurement of developers' and investors' normal to long-standing buoyancy in the real estate sector. The rise in the second quarter was in opposition to the down set of a spectacular stock-market rally that has directed the way to an enhancement in residential purchasing.

Investment sales can also be defined as transactions with an assessment of nearly $5 million, consisting of government and private sales of land and buildings, both section and all together. It also takes in change of possession of property by means of share sales.

With a record sales figure of $1.2 billion by now till the second quarter, property experts considers the entire investment sales for the year 2009 might reach $2 billion to $2.5 billion, depending on how long the rupture of activity in the housing sector goes on.

The sale figure for the complete 2008 was approximately $18 billion, which is quite below the record sale figure of $54 billion in 2007.

The recent sale figure of second quarter of 2009 reveals that 63.5% or $605.6 million from the entire sale was from the housing sector.

In case of the Singapore investment market, the initial movers are the Asian private investors who are ready to purchase residences at ongoing prices which they believe imitate a huge discount from the max point.

In contrast, institutional investors are taking in a wait and watch policy for Singapore, reviewing that the basics are comparatively weak and enhanced prospects will happen in the coming 6 to 12 months.

LaSalle Is All Set For Its Fresh Investment Venture in Asia

2009-07-01T03:10:00.000-07:00

LaSalle Investment Management recently stated that it is all set to continue investing in Asian real estate sector again after a gap of 9 months on the tangential. The investment firm has $3 billion on hand for investments.

The U.S. investment firm which mainly invests in property sector, has by now invested around $8.7 billion in Asian assets, will at the start concentrate on Japan and Australia.

The complete procedure of liability reformation and market reorganization and capital and financial stabilization looks as if to be occurring quite speedily in those countries as compared to other Asian countries.

Japan earlier has had a price modification that has been very important and noteworthy for the people who fail to remember that Japan is still the second largest financial system in the whole world.

The investment firm is, on the other hand, quite careful regarding the opportunities for a wide revival in Asian property sector, keeping in mind that the real estate sector have a tendency to hold up the entire trade and industry growths.

The point in residential sales and especially apartments in China, Hong Kong and Singapore from February 2009 may not be sustainable as it was motivated by restricted demand and comparatively low mortgage rates.

Recent financial basics do not completely maintain this type of fresh growths. There is a danger that this is a bear market rally and the circumstances could turn around when this type of liquidity disappear from the cities or country, or there is fresh upset to the financial systems.

City Developments Increasing Prices of Housing Projects

2009-07-01T03:06:00.000-07:00

City Developments, one of the leading developers of Southeast Asia recently stated that office rents of Singapore office market have started becoming stable and it had also increased prices for a few of its housing projects.

Property experts say that they are quite hopeful that the housing market is improving well and also there is lots of haze in this revival.

Office rents of Singapore property market have started to become stable after sliding down in the last and final quarter of 2008 and the first quarter of 2009 as supply continued to be comparatively tense, however, the majority of the landlords still look forward to rents to go a little downwards.

Actually, there were a lot of office projects in the process even though the largest part would only come into the market in 2011 and 2012. The office market is very responsive to financial circumstances as a result once the financial system gets better, the rise in prices will be very quick.

Private apartment sales in Singapore have increased a lot from the February 2009 subsequent to a very poor performance in 2008, reflecting growths in Hong Kong and China where housing markets have also improved in spite of the weak financial attitude.

The developing firm City Developments has launched nearly 500 apartments for sale since last January, which is almost twice the 260 units it intended to sell in the initial six months of 2009. They also increased prices at a few of their projects by approximately 2% to 8% for the reason of strong demand.

Property sales in Singapore real estate sector in the initial five months of 2009 have by now gone beyond the 4,000-plus units sold in 2008, and the entire sale for 2009 might go beyond 10,000 units, a figure generally related with the time when the real estate sector was thriving.

Developers and Investors of Hong Kong Property Market Anxious

2009-06-26T19:40:00.000-07:00

A bubbly market in Hong Kong makes both developers and investors involved in real estate very anxious. However with foreign property markets time and again rated too low, Hong Kong investors are moving offshore to take the benefit of fire sale prices.

The Hong Kong Investment Corporation, an independent wealth fund, has recently stated that it is taking part in an AUD485 million financing of Australia's Goodman Group, a leading industrial property investor, in cooperation with Macquarie Bank. Of the total, AUD200 million will be taken from Hong Kong Investment Corporation and the leftover AUD285 million from Macquarie Bank.

Goodman Group had declared that Macquarie Bank considered to make available it with AUD300 million of financing, however, to get Hong Kong Investment Corporation into the financing plan, Macquarie Bank had reduced its amount by AUD15 million, and the full amount was lifted to AUD485 million. The period for this financing arrangement is 9 months, and will be payable in February 2010, with an expanded period of 15 months.

As per the financing plan, Goodman Group will also make available the alternative of 255.3 million shares of stapled securities, for a time period of 2 year and exercise price of $0.4 per share to both of its creditors, who have to share the alternative as per the proportion of funds they make available.

Because of the worldwide economic recession, property trust firms have discovered that they don’t have enough funds and time and again they are helpless without deleveraging. A member of Hong Kong Investment Corporation recently stated that his investment in Goodman Group was not straightforwardly associated to the property market in Australia, however aimed to present the company with liquidity hold up and to enhance its long-term capital structure. The major business of Goodman Group is logistics and industrial property.

Prices of Hong Kong Grade A Office Space To Increase In Third Quarter Of 2009

2009-06-26T19:38:00.000-07:00

Prices for Grade A offices in Hong Kong property market are expected to increase in the third quarter of 2009 due to sufficient fund inflow.

However property experts expect rents, particularly those in the CBD, will go down further due to poor demand and because of constant relocation of firms to cheap areas.

The figures of the sales and leasing markets have been moving away from each other in the last few months. Property experts consider that there are added end-users and wealthy investors with ready cash in hand, both in the vicinity and from the mainland, returning to the market in search of investment prospects.

Sustained by a well-built stock market rally and low interest rates, investors have required substitute asset classes for enhanced returns in past few months. They have chosen low earnings and immediate profits over having their money sit in bank deposits that make available almost-zero interest rates. Hong Kong's property market will keep on saying goodbye, determined by these forces.

According to the leading property consultancy CB Richard Ellis, the standard price for Grade A offices increased by 15.5% to an average of HK$11,167 per square feet as at June from January. On the other hand, the leasing market was in under pressure as businesses sustained to reduce cost, motivating rents down by 19% to HK$42.76 per square feet in the same period.

Rents in the CBD dropped to HK$77 per square feet at June, losing 27% from January.

The executive director for office services at CB Richard Ellis, considers rents may go down further in the near future as more and more firms may move to cheaper space in the Kowloon decentralized markets, which are more out from Central.

Real Estate Sector of Hong Kong Recovering

2009-06-26T19:36:00.000-07:00

Hong Kong real estate sector is recovering, alleviating distress that a possible collapse could weaken the nation’s financial recovery.

Sales increase by 45.3% in the initial two quarters to $146 billion from that of a year earlier, which can be compared with a 19.5% decrease for the entire period of 2008.

Dropping residential prices, record fresh loans of 5.17 trillion Yuan in the first quarter of the year 2009 and lower interest rates helped motivate the return. As early as December, Macquarie Securities predict that construction may shrink in 2009 by nearly 30% and Credit Suisse Group AG advised that a failing property market could pull the financial development to zero.

The self-assurance of Macquarie Securities in a second-half financial recovery is based on the potency of property transactions. Property experts predict a 10% to 15% increase in construction.

Abundant liquidity may also impel transaction volumes much more in the last two quarters of 2009. Many leading developers of Hong Kong said they would be resuming land acquisitions in May 2009 and June 2009.

Hong Kong’s financial system may develop 7.5% in 2009, for the reason that government motivation measures respond to a crash in exports. Improved construction will generate many jobs and enhance industries from steel to home appliances and furniture.

Retail sales of construction and decoration materials and furniture both of which are intimately associated to buying of new residential units have registered a huge recovery from the starting of 2009.

Sale Percentage of Leading Developer Shui On Land Increased A Little Bit

2009-06-26T19:32:00.000-07:00

Leading property developer of Hong Kong Shui On Land recently declared that its constricted sales for the initial 5 months of 2009 has summed to more than 1 billion Yuan, which implies that the sale has increased a little bit from what it was in the same period of 2008.

Sales were better in 2009 till the second quarter of 2009 as only a few projects were launched in the same time period in 2008, not until June. However, sales for the initial two quarters of 2009 would be poorer than that of 2008for the reason of the number of projects launched in June 2008.

The director of the firm said that sales increased in the initial quarter compared with the final quarter of 2008 for the reason of the enhanced market atmosphere subsequent to Beijing's financial motivation measures and as mainland purchasing power had gone better.

Moving forward, the developer also stated that it would launch further projects in the last two quarters of 2009, although did not look forward to a huge increase in offer prices. Prices will not increase too much because developers are not insistently increasing prices. They will raise prices in line with market circumstances and the locality of projects.

The developer also doesn’t consider that there is a bubble as many probable purchasers are wealthy with ready cash in hand and don't even require financing to purchase any property.

The developer who mainly concentrates on Shanghai, which has a comparatively low gearing of nearly 25% compared with other developers, had no plans to raise its land reserve, however would purchase sites neighboring to its developments if prospects happen.

Singapore's Real-Estate Investment Market in a Poor State

2009-06-19T06:03:00.000-07:00

The disturbance in worldwide economic markets and the collapsing world economy persistent to weigh on Singapore's real-estate investment market in the very initial quarter stated global real-estate services company Colliers International. The extraordinary crisis has battered market buoyancy, resulting in decreasing property prices and deliberate investment activity, and this has been intensified by a vigilant lending policy accepted by banks.

The entire value of investment sales in the initial quarter of 2009 dropped to 58.8% quarter on quarter to S$ 242 million. This was a simple 1.9% of the $12.69-billion investment sales comprehensive all through the peak point of the market in the second last quarter of 2007.

Private investment sales accounted for the entire transactions in the initial quarter of 2009. There were nil land-banking activities in the public sector subsequent to the Singapore government's postponement of the Confirm List 1 under its Government Land Sale program for the first six months of 2009 in reply to the unsure market attitude.

In the private sector, institutional investors steered clear of the investment sales market in the initial quarter, after increasing properties taken as a whole $63 million in the final quarter of 2008.

The housing sector recorded $177.72 million, i.e. 73.4% of the entire investment sales in the initial quarter of 2009, which is a 40.3% rise over entire housing property transactions in the final quarter of 2008.

One of the biggest transactions was the sale of the project Le Mercier House on Mohamed Sultan Road to Kah International for the amount $35.8 million, or approximately $9,687 per square meter. The location can be rebuilded into a 15-storey building.

As per the hopes of a long drawn out recession in worldwide economies in addition to a more severe borrowing atmosphere, investment sales volume in Singapore is likely to stay slim in the next few quarters.

Singaporean Developers and Developers from Abroad Still Offering Luring Properties

2009-06-19T06:00:00.000-07:00

Singaporean developers and developers from abroad keep on offering properties in Singapore as market sentiment continues to be up.

A few projects like Residences @ Killiney and One Devonshire may be launched in the Singapore property market soon. And publicity events for beachside residences in Vietnam and Australia are coming to Singapore very soon.

Leading property agents are now checking out the rate of interest in the 68-unit Residences @ Killiney by Hoi Hup Realty. The freehold project, close to Somerset MRT station, mostly takes in 2 to 4 bedders and penthouses, and prices may begin from $1,700 per square foot.

Arrangements to launch one more freehold project in the neighborhood also come out to be in progress. The project named One Devonshire consisting of 36-storey building by Allgreen Properties has in total 52 units, consisting mainly of 2 to 4 bedders, sky suites and penthouses.

Research firms are separated on the attitude for the housing property market here. Bearing in mind that demand has been discriminating and more supply will be impending, Nomura Singapore continues to be bearish on the housing property sector.

Property experts believe that at the same time as an increase in pre-sale activity has sustained the idealists, this type of demand has been encouraged by price reductions and Interest Absorption Schemes.

On the contrary, DMG & Partners Securities advanced its call on the real estate sector to plump recently. Physical property prices may have gone down in the first quarter of 2009 and more purchasers from abroad may enter the Singapore residential market in the coming 6 to 9 months.

Meanwhile, a few developers from abroad are counting on purchasers from Singapore accepting their properties. At present, Indochina Land is promoting its recent apartments at the Hyatt Regency Danang Resort and Spa in Vietnam. Prices of these recent units which ranges from US$207 per square foot to US$326 per square foot, and a three-bedroom penthouse can cost nearly US$895,000.

Demand for Housing Properties Is Increasing In Singapore and Hong Kong

2009-06-19T05:59:00.000-07:00

As per a recent survey, the demand for housing properties is increasing in many Asian cities like Singapore, Hong Kong and Tokyo.

Actually, liquidity in the market place is the major factor which is influencing property in Hong Kong and Singapore, mainly at a time when interest rates are comparatively quite low.

Hong Kong appears to be the best performing among these three markets included in the survey i.e. Singapore and Tokyo. The residential property prices have recovered approximately 15% in 2009 from a fall.

However, property analysts have advised that the rally is motivated for the most part by liquidity and is losing steam for the reason that the financial system could go down to nearly 6.5% in 2009, on the basis of government’s analysis and predictions.

This recent survey also revealed that Hong Kong residential property prices will be constant for the left over months of 2009, however, might observe an increase of 10% to15% in the coming two years.

In Singapore property market, demand is rising however strong supply also implies that housing property prices are suspended to drop by 6.8% between the second quarter and the last quarter of 2009, prior to getting better by around 4% in 2010.

Tokyo housing property prices are expected to go down by nearly 10% between the second quarter and the last quarter of 2009 and go down by nearly 6.3% in 2010.

In Singapore, monthly housing property sales have tripled after February as prices have decreased by around 20% after the second quarter of 2009. A few leading developers, such as City Developments and UOL, have stopped decreasing prices of recent projects and, in certain cases, are increasing prices o a certain extent, even though taken as a whole prices continue to be weak.

Buoyancy in Singapore Real Estate Sector Will Persist In The Long Run

2009-06-19T05:56:00.000-07:00

The buoyancy in Singapore's real estate sector will persist in the long run, providing an imminent over-supply of fresh flats, poor rental demand and the truth that the country continues to be in a recession.

That is the gloomy view of two major research houses, which accomplished that the price recovery is extremely weak.

Citigroup recently stated that the market is not in a position of beginning a recurring upswing and that the spear in residential prices cannot come to an end so early. They have alerted against over-confidence, for the reason that basically the market is not prepared for a continued price revival. At the same time as there has been tough resale stipulation, the call for fresh apartments is irregular and rental demand continues to be poor.

Resale expenses of a few projects have increased and many developers are lessening discounts for recent projects, however, Nomura Singapore considers these apparently encouraging factors are deceptive. It stated that the demand for recent homes was enhanced by price reduction and the interest absorption scheme. A quick decline in rents in the middle of massive supply and poor demand has damaged yield prospects.

Nomura also made a note on the destructive consequences of increasing unsold supply and required sales by defaulting or concerned purchasers who purchased properties via deferred payment scheme. These types of properties also form a resource of unknown inventory that will put further stress on declared prices.

As rivalry among recent launches boosts, there also will be further chances of price drops.

The report of Citigroup also stated that a temporary price rise is achievable, even in the luxury apartment sector, because of strong liquidity and the expanding gap between Singapore and Hong Kong property prices.

Apartment Prices Of Singapore Decreasing Constantly

2009-06-19T05:52:00.000-07:00

The apartment prices in Singapore property market have gone down from its peak position to the lowest possible point in just one year.

In April 2008, Singapore was in the fourth position in the world for its best performing market under Knight Frank's Global Residential Price Index based on the year-on-year price fluctuations. Recently, it came out as the third positioned worst performing market in the world among 46 markets.

The residential price index for Singapore gone down to 23.8% in the very first quarter of 2009 compared to first quarter of 2008. And as the index decreased to 16.2% quarter-on-quarter in the first quarter of 2009, Singapore came out as the second most badly performing market based on a quarter-on-quarter positioning, which was in the ninth position in 2008.

Knight Frank's index for Singapore was associated to the URA's price index of non-landed private apartments in the CCR.

There is infrequent confirmation of purchasers snapping up comparative deals. On the other hand, of those purchasers in a position to progress, a lot of are still looking for clearer indications that markets are moving towards the lowest point of the cycle.

At the same time as there has been a rise in private apartment sales recently, a constant price revival will be the turning point on an expansion in the jobs market. If investors are not entering into Singapore, the potency of the rental housing market will be influenced and that will, consecutively, influence investment demand for housing properties.

At the same time as many developers are considering price constancy in the mass-market segment, the high-end sector will not become constant until the sensitivity of Deferred Payment Scheme purchaser’s evasion clears away.

Housing Property Markets Recovering From the Slump

2009-06-14T22:08:00.000-07:00

In the major Asian cities the demand for housing property is increasing however it is quite clear that financial recession will keep on discouraging the office space markets of those cities, decreasing the Grade A office rents in Singapore and Tokyo to around 40% in the coming one and a half year.

The factors that are affecting the office space market are
1. Number of people working
2. Employment issues.

In cities like Hong Kong and Singapore, the interest rates are quite low but the factor that is having influence on the housing sector is liquidity in the market place.

Even though, Hong Kong appears to be in a quite good position compared to Tokyo and Singapore because the prices of the apartments have increased to nearly 15% in 2009 after a downturn.

In Singapore, demand is increasing however strong supply reveals that apartment prices are balanced to decrease by nearly 6.8% between the second quarter and the final quarter of 2009 before improving 4% in next year.

Property experts believe that the housing prices of Tokyo might observe a fall of 10% between the second quarter and the final quarter of 2009 and drop of 6.3% in next year.

Property analysts stated that the residential prices in Hong Kong, Singapore and Japan have gone down noticeably. At present, these markets are appearing quite fascinating because of the added spur of incredibly low interest rates.

In Singapore, the sale figures of apartments have nearly tripled on a monthly basis since February as earlier in the second quarter of 2008 the prices of apartments have decreased by nearly 20%.

A few leading developers like City Developments and UOL have stopped reducing prices of their recent projects and in certain cases are increasing prices to some extent even though on taken as a whole the prices continue to be quite weak.

Developers Increasing the Private Apartment Prices

2009-06-14T22:06:00.000-07:00

The real estate sector of Singapore is showing little bit signs of recovery. As a result, many leading developers have increased the prices of private apartments. However, this also suggests that the market is turning out to be quite confident.

Property experts believe that these positive indications are generally generated by the stock market. The prices of a few properties which have just been done or are near to completion have increased considerably in last month.

The development pursues excellent data for recent private apartment sales, which has passed the standard mark of 1,000-unit mark for three consecutive months from February 2009, after a long period of ruthless stagnation.

Property analysts also believe that the current strong rally in the stock market has provided a boost to the sentiments of real estate sector of Singapore.

Lower prices of private apartments have resulted in stronger sales. Even though, a few current launches have observed excellent sale after developers reduced the prices.

However, a few individual sellers are increasing the prices, in spite of decreasing them. For example, a few sellers of high-end projects at Marina Bay Residences are promoting their properties at $2,000 per sq foot or more – which is considered by experts as a significant conflict level for many purchasers.

A few sellers, having projection on longer term, are in reality diminishing properties from the market, expecting a boost in sentiment. This gives an impression that the sellers are amending their approach to sell, looking at the elevating sales.

The executive director of HSR Property Group said that the property market has increased ahead of prospects in the last month; however is beginning to slow a bit as sellers draw back and wait for excellent deals.

Individual sellers are ready to take the risks and try increased prices as they can withdraw at any point of time.

However, experts believe that there are purchasers in the market with ready cash in hand and there is obviously demand for projects that are of good value.

Serviced Apartment Rental Market Recovering From Slump

2009-06-14T22:05:00.000-07:00

The luxury housing leasing market of Hong Kong has observed a period of constant decline since the second last quarter of 2008. But, the rental slump of serviced apartments has shown indications of recovery.

Because of the global financial slump and economic recession, the luxury housing leasing market has witnessed a rental depression of nearly 24.6% from August 2008 to April 2009. The leasing demand has plunged considerably as a lot of firms put into practice various cost reduction measures like staff cutbacks and the lessening of residential budgets.

Despite of a reduced amount of fresh leasing demand, the serviced apartment market was described by a rising number of local repositioning during the time period of March and April 2009. Given the common lessening residential stipends, many occupiers have preferred to move to cheaper regions, or to demote their housing in terms of size or superiority.

The average rental market of serviced apartment gone down by around 6.4% quarter-on-quarter in the final quarter of 2008 and 5.4% quarter-on-quarter in the first quarter of 2009. On the other hand, the rate of fall gradually lost pace to -1.7% month-on-month by April 2009. The average rental drop in serviced apartments, recording -12.9% between August 2008 to April 2009, was also not that much harsh as compared to -24.6% for luxury housing leasing property, recommending that the serviced apartment sector has been comparatively more flexible in the middle of the current recession of the housing leasing market.

Moving forward, confront in the luxury housing leasing market might symbolize prospect for the serviced apartment market, which characterizes flexible lease terms. Like, a few occupiers like to stay in serviced apartments for a short term of just three months or less prior to giving a commitment to a long lease in general units when the economy becomes stable.

Luxury Property Sector Of Hong Kong in a Poor Condition

2009-06-14T22:02:00.000-07:00

Tenant demand is constantly moving down as the global financial recession affected the Hong Kong property market. On the other hand, the sales figure of the first quarter of 2009 has improved a bit, generally determined by end user demand for primary properties at reduced prices, forcing earnings down from their current maxim point in the final quarter of 2008.

Moving ahead, at the same time as landlords may be compelled to make available more spurs to keep hold of existing tenants, as corporate budgets remain tense, the hunt for major properties by investors with ready cash in hand may gradually get slowed together with reducing tenant demand and a wandering economy. Both are likely to damage investment sentiment in the medium term.

Rents are decreasing in over 90% of the countries reviewed with only Brazil, Saudi Arabia and parts of Africa, yet to report slump. Surveyors are undisputed that rents are decreasing in Singapore and Ukraine, at the same time as in Russia 97% of surveyors observed a drop to a certain extent than increase in rents.

Weaker tenant demand has directed path to faster increase in reported obtainable space which has compounded the obscurity towards the rental attitude. Rental expectations are poorest in Singapore, Hong Kong and Ireland with sentiment in countries in up-and-coming Europe also depressing - mainly Hungary, Romania and Ukraine. Obtainable space has increased in almost every region compelling agents to make available more and bigger inducement packages with the intention of protecting a letting.

In spite of the rental obscurity the quick re-pricing in a few markets may be boosting investor interest. All over the developed regions directing the property cycle, investment demand and lettings demand dropped at a slower rate. To be sure, buying activity is likely to be increasing in all over Western Europe and Asia for the initial time in over a year.

Housing Transactions of May 2009 Crossed Records of the Last Five Quarters

2009-06-14T22:00:00.000-07:00

The number of housing transaction for the month of May in Hong Kong had crossed all the records of the last five quarters. As per the Land Registry official records, the housing transaction has increased by nearly 42% by volume in May 2009.

The number of housing units that have finalized deals increased to 11,788 in May 2009 compared to May 2008. As per value, the transactions increased by around 50% to HK$39.4 billion.

Residential prices of Hong Kong are increasing in the middle of expectations that the worst condition may be ending for the world’s leading economies. The real estate sector may also take the advantage for the reason that banks decrease lending rates to lower home-purchasing expenses and encourage demand.

Also, the low interest rates have given the real estate sector a strong mental boost. Another factor which is boosting the confidence level of the property investors is the profit in the stock market.

The wealthiest man of Hong Kong Billionaire Li Ka-shing recently said in May that property investors are quite confident to make money in the coming 3 to 4 years. Li is also holding the post of chairman of Cheung Kong Holdings Ltd., which is the city’s second leading builder as per market value.

Banks reduce savings rates because cash in the economy surged, directing the 3 month interbank lending cost, to over ½ to 0.3518% from 0.8979% at the end of March 2009.

Hong Kong’s benchmark Hang Seng Index has increased by nearly 62% from a 4 month low position on March 2009. Centaline’s index of mass residential prices may have increased by 10.5% by the end of May 2009 from that of March 2009.

Hong Kong Property Market Revealing Signs of Recovery

2009-06-14T21:58:00.000-07:00

The Hong Kong property market has started revealing signs of recovery as the residential price index have increased by nearly 13.3% till now in 2009, and sales numbers have gradually improved. Numbers of major areas of Hong Kong are also showing flexibility in residential values and at the same time as the global environment gets better, the influence should be experienced in this major business centre of Chinese economy.

A leading property developer of Hong Kong recently reported regarding a chance of a residential price recovery as early as in 2009. They also stated that by now there has been a noticeable rise in pricing in four of Hong Kong’s largest mass housing estates where prices for apartments are quite less than 1.3 million. At present, the prices in these estates are quite more than what was witnessed in September 2008 which is an excellent indication of a probable market recovery.

An associate director at Centaline said that as the sales figures are getting stable at a standard level and investors are choosing fixed assets o purchase, developers are expecting that the residential prices will get back to the earlier levels by the end of 2009.

The prices of luxury apartments of Hong Kong are Asia’s second-most costly, and observing a rise in prices in that market is an encouraging indication greeted by many property developers. With the supplementary $585 billion incentive package of Premier Wen Jiabao the attitude is definitely not as severe as it was 2-3 months ago.

In view of the fact that Hong Kong is a major business and financial hub in China, the city will be able to take advantage from any sort of recovering activity. After September 2008, following the bankruptcy of Lehman Brothers Holdings Inc. a lot of properties gone down by approximately 25% of their market value.

However, factors like inadequate Supply and Low Mortgage rates have lend a hand in improving the property market of Hong Kong.

Property Prices Are Expected To Increase In 2009

2009-06-07T21:01:00.000-07:00

Property experts are very optimistic regarding the Hong Kong property market as plentiful of liquidity has directed the way to very low interest rates.

Experts like JP Morgan forecasts that the prices of local housing would increase by nearly 10% in 2009 as compared to that of 2008. Earlier experts have forecasted that there would be a decrease of 20% in the local housing prices in 2009. Experts also forecasted that there would be an increase of 5% in local housing prices in 2010. They expect that the economy of Hong Kong would definitely start recovering by the end of 2009, which in turn is making the expectations more optimistic.

Because of adequate amount of liquidity - which we consider is imitated in the past low one-month interbank rate of just 0.087% - and optimistic news flow from fresh launches, the sector is predictable to go up to over-mean valuations in the short term.

The brokerage has also increased its target price for Cheung Kong (Holdings) by nearly 16% to HK$87, for Sun Hung Kai Properties by nearly 37% to HK$96, and Henderson Land by above 28% to HK$46.

This present tendency of low interest rates is also bringing up more and more demand for property in Hong Kong.

Sino Land has moved to its nine- month maxim point, going up by 8.74% to finish at HK$13.94, at the same time as New World Development gone up by 5.22% to HK$14.52.

As per the leading property expert Merrill Lynch property prices will go up by nearly 5% during the second half of 2009 and 5% to 10% in 2010. The investment bank chooses Sun Hung Kai Properties above Cheung Kong.

For the entire market, experts consider that the sentiment has clearly enhanced or we can say got better, for the most part with transparency that China is on its way to get its 8% GDP development target in 2009, and indications that the financial markets may have bottomed.

Property Investors Are Concentrating On Hong Kong Property Market

2009-06-07T20:59:00.000-07:00

Property investors, who have earlier benefited from booming stock markets, are staying away from the property market due to its worst condition. This worst condition was a result of global economic recession. Many property investors are trapped with loans that they find very troublesome to pay - a condition made much poorer with property depression. A lot of property developers are also loaded with projects with no sale, at the same time as increasing interest expenses. Building contractors, who depend much more heavily on the property market for business, are also mostly affected. What is the attitude and when will the regional property market get better? Should one continue to be away from the Hong Kong property market?

Many property experts believe that any slump makes available a lot of opportunities to the investors. There is no contradiction that the present viewpoint for Asian economies and property market is gloomy. Worries linger as to when the global economic crisis will decrease.

Private property prices of Singapore, for instance, have gone down by nearly 20% from its maxim point attained during the second quarter of the year 2008. This was after a thrilling 31% increase between 2007 and 2008, fuelled by a thriving stock market and confidence over Singapore’s scenario as a global business center for the rich people to live, work and play. Across the region, property prices in many different sectors – housing, industrial, commercial, office, have all destabilized considerably.

At the same time as the recession is finding its way out, prospects are plentiful for both retail and institutional property investors who are ready to look ahead of the recurring nature inbuilt to property markets.

In addition, Asian financial systems are experiencing a massive change in their demographics. In several countries, the younger population is a growing proportion. They augment to the ranks of a middle class that is keen to spend and enhance their excellence of lives. Almost definitely, they will be in search of a better, improved and nicer support behind them which they can call their own.