ST : East Asia recovering faster

Dec 15, 2009
East Asia recovering faster



China, buoyed by massive stimulus spending and easy credit, recorded by far the strongest recovery, growing 8.9 per cent in the third quarter. -- PHOTO: AFP

MANILA - EAST Asia's emerging economies are rebounding from the global recession faster than anticipated, the Asian Development Bank said on Tuesday, as it raised growth forecasts for the region.

The Manila-based lender said it expects growth of 4.2 per cent this year and 6.8 per cent in 2010. That's up from the bank's earlier forecasts of 3.6 per cent and 6.5 per cent. Emerging East Asia comprises 10 South-east Asian countries plus China, Hong Kong, South Korea and Taiwan.

The recovery has been aided by government stimulus spending and improving exports though the pace of the rebound varies widely, the ADB said. Less open economies in South-east Asia were partly insulated from the global crisis but are not expected to recover strongly either, it said. China, buoyed by massive stimulus spending and easy credit, recorded by far the strongest recovery, growing 8.9 per cent in the third quarter. The ADB maintained its growth forecast for China at 8.2 per cent this year and 8.9 per cent in 2010.

Middle-income South-east Asian economies - Indonesia, Malaysia, the Philippines, Thailand and Vietnam - expanded 1.2 per cent in the third quarter. The combined gross domestic product of newly industrialised nations Hong Kong, South Korea, Singapore and Taiwan contracted slightly by 0.1 per cent - a turnaround from the 6.3 per cent contraction in the first quarter of 2009.

'Emerging Asia is rebounding strongly and growth rates next year are likely to slightly outpace 2008 in most countries,' said the ADB's chief economist, Lee Jong Wha Lee, who cautioned that despite the recovery, it was essential that 'fiscal and monetary stimulus remain accommodative where possible to put economies on a sound footing'.

The bank said it expects 45 developing countries from central Asia to the Pacific to grow by 4.5 per cent this year and 6.6 per cent in 2010 - an increase from the 3.9 per cent and 6.4 per cent it forecast in September. -- AP

Investors’ market as upgraders cool down

Investors’ market as upgraders cool down
Dec 15, 2009 - PropertyGuru.com.sg
Press Release: PropNex


URA’s figures for private property sales in November 2009 fell to a mere 600 transactions, the lowest since January this year.

“These are signs that mass market buyers are exercising greater caution,” says PropNex CEO Mohamed Ismail.

Due to the Government’s recent announcement of additional land to be released for development, pent-up demand from HDB upgraders, witnessed for the last two quarters, has evaporated.

Mr Ismail explains however, that serious investors can be seen to buy with confidence, picking up reasonably priced properties in good locations for $1500-$2500 like Parvis, The Marina Bay Suites and Espada.

“We expect same levels of transaction in the first quarter of 2010,” he concludes.

UK housing price recovery stalls

UK housing price recovery stalls
Dec 15, 2009 - PropertyGuru.com.sg

The recovery of the housing market in the UK will peter out next year, as supply of homes surge due to forced sales, said Rightmove plc.

The average asking price will idle in 2010 after a 2 percent increase this year, said the biggest property website in the UK. Prices dropped 2.2 percent this month to £221,463 (S$501,207), and this may fall again next month, it said.

Banks may also show “less forbearance” to consumers who defer their mortgage payments after the general election in 2010. The shortage of available properties helped stir up prices this year and erased several losses in values caused by the economic slump.

“2009 turned out to be a good time to trade up,” said Rightmove commercial director, Miles Shipside. “We forecast the positive mood will continue into 2010 until the post-election hangover kicks in.”

Asking price in the North of England fell 5.8 percent from November, making it the worst-performing of 10 regions tracked by Rightmove. East Anglia was the only region to have a monthly increase, with price rose to 0.5 percent in November.

In London, prices fell 1.2 percent while in Hounslow, prices dropped by 6.2 percent. The second biggest drop was in Kensington and Chelsea, the capital's most expensive district, where prices dropped 5 percent or nearly £100,000 in one month.

The average number of properties available for property agents fell to 67 from last month’s 69, making it the lowest since February 2008.

The Council of Mortgage Lenders deterred its UK mortgage repossessions this year after low interest rates helped households paid their debts. The CML last month accounted 48,000 repossessions, down from 75,000 from earlier predictions.

Mortgage repossessions may increase in the second half of next year, as banks become less patient to homeowners who have their payments delayed, said Rightmove.

14,500 new home sales expected in 2009

14,500 new home sales expected in 2009
Dec 15, 2009 - PropertyGuru.com.sg

Around 14,500 new homes are expected to be sold for the whole of this year, second only to the 2007 record of 14,811 units.

According to property consultancy firm CBRE, despite the high volume of sales, caveats lodged so far indicated that the total selling price paid in 2009 for new homes was 58 percent of that two years ago.

CBRE said that this was probably because of the dominance of mass market and mid-tier homes that were sold this year compared to 2007, when the public’s interest was directed to high-end homes.

The mid-tier segment’s strong take-up only filtered upwards to the prime segment in H2 2009.

Consequently, the volume of sales coming from mid-tier and mass market segments composed around 60 percent of the total quantum sales in 2009.

On the contrary, back in 2007, high-end projects located in the prime areas or Core Central Region composed more than 64 percent of the total quantum sales.

According to CBRE, it expects to see a wider spread of project launches from the mass market to prime locations and to the city fringe in the first half of 2010.

CBRE said that prices for the city fringe and mass market 99-year leasehold projects could possibly cross the $1,000 per sq ft barrier due to its proximity to the city centre and MRT stations.

ST : ARA and Qatar Group to jointly invest in Singapore Islamic REIT

ARA and Qatar Group to jointly invest in Singapore Islamic REIT
Dec 15, 2009 - PropertyGuru.com.sg

ARA Asset Management and Qatar's Regency Group have collaborated to launch the first ever real estate investment trust in Singapore, and the property will be introduced in a way that all Islamic principles are considered, with the investor's interest coming back to the REIT sector.

The proposed property will consist of service apartments and hotels in Qatar, with an initial planned portfolio of about 164,000 sq m of complete floor area, as confirmed by AXA. The company hopes to get the proposed REIT listed by the second half of next year.

No confirmations have been made regarding the finances. The two companies have not even released an estimate.

All proposed transactions will be closely monitored by DBS Bank.

Industrial rents may fall further in 2010

Industrial rents may fall further in 2010
Dec 15, 2009 - PropertyGuru.com.sg

Production lines may have continued its operations but market watchers are not expecting the industrial property sector to recover in 2010.

The uncertainty of the economy, greater supply of industrial spaces and relocation of offices could cause rents to fall even further, although at a more moderate pace than this year.

“As the economy recovers and performance in the manufacturing sector improves, demand for industrial space may improve in 2010 although it is expected to remain weak,” says Chua Chor Hoon, the research head for DTZ Southeast Asia.

Conventional industrial space is expected to have a greater take-up as manufacturers bolster production, but doubts still remain over the sustainability of such growth. For the large part of 2009, warehouse and factory rents suffered as external demand for goods declined. The average monthly rent for multiple-user warehouses slipped 12.4 percent to $1.38 per sq ft (psf) between Q1 and Q3, according to the Urban Redevelopment Authority (URA). The industrial space rental index also incurred an 8.5 points loss over the same period.

However, “as the manufacturing sector returns to growth”, conventional industrial rental space could “hold firm” in 2010, says Tay Huey Ying, the research and advisory director at Colliers International.

Chua Yang Liang, head of Southeast Asia research at Jones Lang LaSalle (JLL), believes that these rents could either maintain its steady pace or slip at a more modest pace by up to 5 percent.

Sentiments have seen a slight improvement as the economy climbs out of the recession. The GDP could even expand by 5.5 percent in 2010, going by the average forecast from 20 economists polled in the latest survey by the Monetary Authority of Singapore.

2010 could also be tough for business parks and high-tech spaces, which saw immense demand from companies in 2007 and early 2008 due to soaring office rents. In fact, Ms Chua of DTZ expects these properties “to fare worst” in terms of rents and occupancies compared with other types of industrial space.

Meanwhile, CIMB analyst Janice Ding stated, “Sharply lower office rents in the central business district has reduced the attractiveness of pseudo-office space in business parks."

Dr Chua of JLL also noted, “Given the large high-tech industrial supply that is expected to come onstream, rentals are likely to continue sliding.”

Based on the JLL data, monthly high-tech space and business park rents dipped 28 percent to $2.70 psf from January to September. Dr. Chua anticipates seeing 4 to 9 percent declines in these rents in 2010.

ST : Home sales near '07 levels

Dec 15, 2009
Home sales near '07 levels
But with more mass market deals, total value is at 58% of that in 2007
By Joyce Teo, Property Correspondent



With a fortnight left in the year, CBRE estimates total fourth quarter sales of new private homes at 1,700 units, putting combined sales for November and December at 889 units as October sales were 811 units, down from the 1,143 sold in September. -- PHOTO: BT

WITH the year nearly over, it is clear that nearly as many homes will be sold this year as in the boom year of 2007.

CB Richard Ellis (CBRE) predicted on Monday that as many as 14,500 new homes may be sold once the final tally is in for this year - second only to 2007's record take-up of 14,811 units.

But caveats lodged from Jan 1 to Dec 11 showed that the total value of property sales this year is running at only 58 per cent of that in 2007, said CBRE.

It said this was because mass market and mid-tier homes dominated the market this year, unlike in 2007 when high-end homes stole the limelight.

Also noteworthy: the fast-rising popularity of small-format apartments of 500 sq ft and below. So far this year, 540 of these apartments have been sold, more than double the 221 units sold in 2007.

Most projects with small units were sold out within a few days of their launch as each unit was 'very affordable' at between $300,000 and $600,000.

joyceteo@sph.com.sg

ST : Private home sales slow

Dec 15, 2009
Private home sales slow
By Joyce Teo, Property Correspondent


Home transactions have declined since peaking in July. -- PHOTO: EYEB

PRIVATE home sales slowed for a fourth straight month in November.

Developers sold 600 new units in November - down from 811 units in October and 1,143 units in September, according to data released by the Urban Redevelopment Authority on Tuesday.

But developers launched 923 units last month, more than the 566 units in October. Experts have said that the market is just taking a breather, following months of hectic sales around the middle of the year, which peaked at 10,000 units in July.

The increase prompted the government to announce that it will sell more land sites and ban interest-only mortgages for uncompleted homes as part of measures to prevent excessive price swings. The top-seller last month was Parvis in Holland Hill. Ho Bee launched 130 units in the condo project and sold 103 of them at a median price of $1,507 per sq ft.

Home prices rose 15.8 per cent in the third quarter, the first increase in more than a year and the biggest quarter-on- quarter gain in 28 years, the URA said last month. URA is expected to release its preliminary estimate for fourth-quarter prices on Jan 4.

The top-seller last month was Parvis in Holland Hill. Ho Bee launched 130 units in the condo project and sold 103 of them at a median price of $1,507 per sq ft. Marina Bay Suites also sold 87 units last month at an average price of S$2,159 a square foot.