Despite mortgage loan request fall, private sector optimistic

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-18unpipq8fo/XVWbUQci8iI/AAAAAAAAASQ/j3oT6hw8DoYJk67j8XL3_XXFgpKQEhXBACLcBGAs/s1600/an-artists-rendering.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-18unpipq8fo/XVWbUQci8iI/AAAAAAAAASQ/j3oT6hw8DoYJk67j8XL3_XXFgpKQEhXBACLcBGAs/s640/an-artists-rendering.jpg" width="640" /></a></div> <br /> Despite a Credit Bureau Cambodia (CBC) report showing a 36 per cent quarter-on-quarter fall in mortgage loan applications in the second quarter of this year, the private sector has retained its optimism in the Kingdom's housing sector.<br /> <br /> Hout Ieng Tong, chairman and general manager of microfinance institution Hattha Kaksekar Limited (HKL), said mortgage lending at his company has grown.<br /> <br /> "I have yet to see a decrease in the number of applications for mortgages, our figures still show an increase in mortgages."<br /> <br /> He said that people are still in need of loans and that there are no signs that the housing sector is at risk.<br /> <br /> "I think the sector is still growing well because people still have good incomes, good livelihoods, and overall, our economy remains stable," he said.<br /> <br /> Cambodia Post Bank CEO Toch Chaochek said mortgage applications at his bank increased 29 per cent quarter-on-quarter in the second quarter of this year, from 801 to 1,036 applications, with lending volume increasing from $30 million to $39 million.<br /> <br /> "I don't think the real estate sector will be affected, our mortgage lending is on the rise as usual," he said.<br /> <br /> However, he did not refute the CBC report, saying that the findings may merely stem from seasonal trends.<br /> <br /> "There were many holidays [during the period] so the number of loan applicants may not be so high," he said.<br /> <br /> The report showed that the total consumer loan balance in Cambodia reached $7.16 billion at the end of June, but it did not disclose the volume of mortgage loans in the second quarter.<br /> <br /> However, as of the first quarter, the value of home loans exceeded $3 billion, it showed. As of the first half of last year, the total mortgage value was more than $2.5 billion.<br /> <br /> Advance Real Estate Co Ltd CEO and founder Po Eavkong said the decline in mortgage applications may reflect stiff competition in the banking sector, while rising housing prices may also contribute to the drop.<br /> <br /> "I see that housing supply is still growing normally, but annually increasing home prices is a problem for those with stagnant incomes who want to borrow impossible [amounts] from banks," he said.<br /> <br /> Cambodian Valuers and Estate Agents Association president Chrek Soknim said there has been a rise in the number of flat sales in gated communities, but most are bought as investments.<br /> <br /> "Due to political stability and economic and housing growth, there are more people buying as investments than for residence," he said.

Despite mortgage loan request fall, private sector optimistic

Despite a Credit Bureau Cambodia (CBC) report showing a 36 per cent quarter-on-quarter fall in mortgage loan applications in the second q...

Read more »

Older Singapore HDB flats back in demand after CPF rule change

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-6srGbu-Yk4A/XVWalUD5CrI/AAAAAAAAASI/DZIjBi8eX5wrtU6jz7A3TLGU9HRLJlYxwCLcBGAs/s1600/10-hdb.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-6srGbu-Yk4A/XVWalUD5CrI/AAAAAAAAASI/DZIjBi8eX5wrtU6jz7A3TLGU9HRLJlYxwCLcBGAs/s640/10-hdb.jpg" width="640" /></a></div> <br /> The Demand for ageing Housing & Development Board (HDB) flats is on the rise in Singapore, two months after the authorities changed Central Provident Fund (CPF) rules to expand the pool of people who can buy them.<br /> <br /> Some 564 flats aged more than 40 years changed hands in May and June, up from 403 in the same period last year.<br /> <br /> Transactions for flats between 30 and 40 years old rose 10.4 per cent to 1,219 units over the same period.<br /> <br /> This means that older flats – those over 30 years old – made up 44.9 per cent of the total resale transactions in those two months, up from 40.6 per cent last year.<br /> <br /> Christine Sun, head of research at real estate agency OrangeTee & Tie, which compiled the data in its half-yearly report, on Tuesday said the second quarter usually sees more sales.<br /> <br /> But the fact that resale transactions have also increased – by 5.6 per cent year-on-year – shows that "apart from a seasonal effect, the recent CPF changes may have been a major catalyst that has spurred buying demand last quarter".<br /> <br /> Since May, buyers have been allowed to use more of their CPF monies and get bigger HDB loans for ageing flats, as long as the property's remaining lease covers the youngest buyers until the age of 95.<br /> <br /> Previously, CPF usage and loan disbursement were based on a flat's remaining lease.<br /> <br /> At the time, analysts said the move would widen the pool of buyers who can use CPF to buy older flats, especially older buyers.<br /> <br /> But they said it may also deter younger buyers from purchasing flats with leases that they may outlive.<br /> <br /> According to OrangeTee & Tie, the policy change also appears to have benefited owners of bigger and older flats.<br /> <br /> The number of transactions for four-room flats over 40 years old rose 53.5 per cent from May and June last year to the same period this year. Five-room flat sales increased 54.5 per cent.<br /> <br /> However, transactions of similar-sized younger flats – between 10 and 30 years old – dipped by 4.4 per cent for four-room flats and 15 per cent for five-room flats.<br /> <br /> While the transactions of flats under 10 years old also increased substantially over the same period, Sun said the uptick can be attributed to a surge in the supply of flats reaching their five-year minimum occupation period, rather than CPF policy changes.<br /> <br /> The firm found that mature estates like Bukit Batok, Geylang and Bedok saw the highest year-on-year increase in resale transactions for older flats.<br /> <br /> In its report, OrangeTee & Tie added that the data findings are in tandem with its agents reporting a rising number of inquiries about older flats.<br /> <br /> They have also noticed more collective-sale owners turning to such flats after collecting their sales proceeds.<br /> <br /> The report added: "Some may regard older flats as affordable, given their lower price quantum and large living spaces, and they get to keep a sizeable amount of sales proceeds for retirement or re-investment.<br /> <br /> "With more public education, concerns surrounding the lease decay issue may start focusing on a new narrative that emphasises the importance of financial and retirement planning when a buyer makes a property purchase.<br /> <br /> "With a new perspective, older flats may see a revival in demand. More liquidity would a THE STRAITS TIMES (SINGAPORE)<br /> <div> <br /></div>

Older Singapore HDB flats back in demand after CPF rule change

The Demand for ageing Housing & Development Board (HDB) flats is on the rise in Singapore, two months after the authorities changed C...

Read more »

Residency in SK’s Sejong on the rise

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-WfQhOmX3ajY/XVWZ2GsdAdI/AAAAAAAAASA/shFWZlAqJO8ogLaHDmGfKih1NaaiWq2vQCLcBGAs/s1600/11-sk_0.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-WfQhOmX3ajY/XVWZ2GsdAdI/AAAAAAAAASA/shFWZlAqJO8ogLaHDmGfKih1NaaiWq2vQCLcBGAs/s640/11-sk_0.jpg" width="640" /></a></div> <br /> South Korea's centrally located Sejong city borders Daejeon to the south, Gongju to the west, Cheonan to the north and Cheongju to the east. It is also relatively close to the southern provinces of North Jeolla and North Gyeongsang.<br /> <br /> As of June this year, its population came to 327,643 with the number of households reaching 129,937.<br /> <br /> As the fastest-growing city in South Korea, Sejong is actively attracting people from neighbouring cities and from the Seoul metropolitan area.<br /> <br /> Builders and retailers have rushed to the vicinity of the new Government Complex Sejong in Eojin-dong as well as to Naseong-dong, where some public agencies and state-funded institutes are located.<br /> <br /> It is also one of the few areas in the nation where construction of residential complexes has been vitalised. Near the government complex, visitors can see major apartment brand names such as Hyundai Engineering & Construction's Hillstate and Jungheung Construction's S-Class.<br /> <br /> Sejong has already been designated by the Land Ministry as an area that is likely to see significant property speculation.<br /> <br /> A real estate agent in the city said it was hard to predict what the place would look like a few years from now. "More and more households are moving here from Daejeon (the nation's fifth-largest city) and from South and North Chungcheong provinces."<br /> <br /> He said the number of residents working in the service sector is growing in proportion to the increasing number of civil servants.<br /> <br /> The Ministry of Science and ICT is scheduled to relocate its office from Gwacheon, Gyeonggi province, to Sejong. The Ministry of Interior and Safety finished relocating there in the first quarter.<br /> <br /> Of the 18 government ministries, the complex is home to 12 – the finance, environment and agriculture ministries moved there in 2012, followed by the Trade Ministry, the Employment Ministry and seven others.<br /> <br /> A lingering concern, however, is that a large percentage of civil servants commute between the complex and the Seoul metropolitan area via KTX high-speed trains or government-funded commuter buses.<br /> <br /> "Our daily sales during weekdays far surpass those on weekends," said a food retailer in Sejong. "The families of many civil servants still reside in Seoul and Gyeonggi province due to factors such as their children's education and the lack of infrastructure here, like department stores and general hospitals."<br /> <br /> He also said private consumption among residents was limited as no major financial firm or conglomerate-based enterprise had its headquarters here.<br /> <br /> Nonetheless, analysts shared a positive view of the growth potential of the city, the result of an experiment initiated by former President Roh Moo-hyun.<br /> <br /> <b>Youngest region</b><br /> <br /> Sejong is the youngest region in the nation. Of all Korea's cities and provinces, only Sejong can say the average age of its residents is under 40.<br /> <br /> While the nationwide average for eight major cities and nine provinces is 42.4 years, with even higher averages of 44.2 in Busan and 45.9 in South Jeolla Province, the figure for Sejong was 36.8 as of June – 36.2 for men and 37.4 for women.<br /> <br /> Seoul citizens' average age was 42.4 – 41.5 for men and 43.2 for women – reflecting the nationwide average.<br /> <br /> "The youngest district means the highest percentage of working-age people, people between 15 and 64. This is promising within an aged society," said a research analyst in Seoul.<br /> <br /> Over the past five years, since June 2014, Korea saw its population increase by 609,000 – from 51.23 million to 51.84 million.<br /> <br /> During the same time frame, Sejong city recorded far faster population growth, an increase of 196,000 from 130,000 to 327,000 – the equivalent of 32.1 per cent of the nation's population growth.<br /> <br /> In addition, city officials are pushing ahead with plans for a new KTX station as early as 2025, either in Yongpo-ri or Balsan-ri in Geumnam-myeon. Both areas are just south of the Geum River, a five-minute bus ride from the government complex.<br /> <br /> The envisioned Sejong Station is part of a policy road map unveiled by Mayor Lee Choon-hee last year, which contained 145 pledges for his four-year term that would require about 9.3 trillion won ($7.8 billion) to fulfil.<br /> <br /> The budget for Sejong Station is estimated at 100 billion to 130 billion won, and it could serve as a valuable intermediate point between Osong Station in Cheongju, North Chungcheong province, and Gongju Station in South Chungcheong province.<br /> <br /> Construction of the Seoul-Sejong Expressway has been underway since the time of former President Park Geun-hye. THE KOREA HERALD

Residency in SK’s Sejong on the rise

South Korea's centrally located Sejong city borders Daejeon to the south, Gongju to the west, Cheonan to the north and Cheongju to th...

Read more »

Bangkok property project launches rise 11% in H1

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-ak2P09LImGQ/XVWYvclAQUI/AAAAAAAAAR0/vc53f6JF1n8Msv2_lbMlA3outecmy0oWACLcBGAs/s1600/11-story-2_8.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-ak2P09LImGQ/XVWYvclAQUI/AAAAAAAAAR0/vc53f6JF1n8Msv2_lbMlA3outecmy0oWACLcBGAs/s640/11-story-2_8.jpg" width="640" /></a></div> <br /> Some 219 property projects were launched in the first half of this year in Bangkok and its surrounding areas, an 11.2 per cent increase from the same period last year, the Agency for Real Estate Affairs (Area) reported last week.<br /> <br /> The launches put 55,596 units on the market, with a total value of 221.5 billion baht ($7.2 billion), up 18.6 per cent and 15.4 per cent, respectively, from the year-earlier period.<br /> <br /> Up to 211 of the new projects in the first half are residential, including condominiums, single detached houses, and townhouse. The other eight projects are for commercial buildings, the research said.<br /> <br /> The average residential price was 3.96 million baht per unit, up one per cent from the end of last year, the research said.<br /> <br /> AP (Thailand) Plc led the way on the first-half launches with 5,135 units worth 27.27 billion baht, followed by Pruksa Real Estate Plc with 3,755 units worth 13.66 billion baht, and Supalai Plc with 1,983 units worth 18.73 billion baht.<br /> <br /> The inventory of townhouses on June 30, 2019, was 61,541 units, down 2.7 per cent from the end of last year.<br /> <br /> Meanwhile, the inventory of single detached houses on June 30 was 61,541 units, down 2.5 per cent from the end of last year.<br /> <br /> Condominiums recorded a total inventory of 88,788 units at the end of last month, falling 8.5 per cent from the end of last year.<br /> <br /> In view of the market in the first half of this year, Area forecasts the property market this year will drop 16 per cent compared with last year, when demand had slumped. THE NATION (THAILAND)

Bangkok property project launches rise 11% in H1

Some 219 property projects were launched in the first half of this year in Bangkok and its surrounding areas, an 11.2 per cent increase f...

Read more »

VN banks ready for risky lending

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-rXwpwnNh4eI/XVWYEy9twOI/AAAAAAAAARs/mFVI5rOXdZMt6fLk58gNcOZUJe_N6dhMACLcBGAs/s1600/11-story-1_12.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-rXwpwnNh4eI/XVWYEy9twOI/AAAAAAAAARs/mFVI5rOXdZMt6fLk58gNcOZUJe_N6dhMACLcBGAs/s640/11-story-1_12.jpg" width="640" /></a></div> <br /> Nguyen Quoc Hung, director of the State Bank of Vietnam's (SBV's) credit department, recently told the media that banks have plentiful liquidity and are ready to lend to risky areas, including the property sector.<br /> <br /> "Though we all know real estate is a business with high risks, it does not mean the banks restrict lending to the sector."<br /> <br /> His statement came in the wake of the central bank making public a draft circular on adjustments to the Circular 36/2014/TT-NHNN, stipulating prudential ratios and limits in activities of credit institutions and foreign bank branches.<br /> <br /> The draft circular set the risk weight asset ratio to 150 per cent for mortgages worth three billion dong ($126,000) and the rate for loans worth 1.5 to three billion dong at 100 per cent (the current ratio for both loans is 50 per cent).<br /> <br /> Besides, it will also adjust the ratio of short-term deposits that can be used for medium- and long-term loans. Under a three-phase roadmap lasting until 2022, the ratio will be reduced to 30 per cent by July 1, 2020, from the current 40 per cent.<br /> <br /> The adjustments are expected to help the central bank control liquidity risks to ensure the safety of the banking industry in the face of economic changes, contributing to the country's sustainable development.<br /> <br /> But many experts have slammed this draft circular saying tightening credit for buying luxury homes could shock the housing market.<br /> <br /> It would seriously affect the development of the high-end segment, which is expected to help Vietnam improve infrastructure quality and people's living standards, they claimed.<br /> <br /> They suggested that policy makers should reconsider to ensure balanced development of the property market.<br /> <br /> The central bank should ask banks to carefully evaluate the financial capacity of buyers before lending to them instead of tightening credit to the entire high-end segment, they said.<br /> <br /> A spokesman for the Vietnam Real Estate Association said credit for buying land for speculation purposes could be tightened but it was not necessary to tighten credit for home buying because it stimulates other industries such as construction, cement and steel.<br /> <br /> In response to these protests, Hung said the credit tightening would apply to all sectors, not only real estate.<br /> <br /> "Banks do not lack capital but need to limit risks. So they will only lend to effective projects that meet legal requirements and prove to be profitable."<br /> <br /> In reality, banks are offering big loans to individuals to buy houses at attractive interest rates.<br /> <br /> Vietcombank is offering interest rates of 7.7 to 8.1 per cent for the first 12 months and 8.7 to 8.9 per cent for the first 24 months.<br /> <br /> Clearly, the central bank's new rules are not going to make lenders turn their backs on the real estate sector.<br /> <br /> Last year outstanding loans to the real estate sector, including both to developers and house buyers, grew by 31.7 per cent.<br /> <br /> In the first quarter of this year it grew by 3.29 per cent, higher than the overall lending growth. VIET NAM NEWS

VN banks ready for risky lending

Nguyen Quoc Hung, director of the State Bank of Vietnam's (SBV's) credit department, recently told the media that banks have plen...

Read more »

Researchers: HCMC office space market growing strong

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-aDXL5iX9GTU/XVWXFtyfajI/AAAAAAAAARc/F90KLUZD3I0vqkpyuBHPotKZoYOyVRE2wCLcBGAs/s1600/10-hcmc_0.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-aDXL5iX9GTU/XVWXFtyfajI/AAAAAAAAARc/F90KLUZD3I0vqkpyuBHPotKZoYOyVRE2wCLcBGAs/s640/10-hcmc_0.jpg" width="640" /></a></div> <br /> The flexible office market in Ho Chi Minh City comprising co-working and serviced offices is among the fastest growing in the Asia Pacific, market researchers said.<br /> <br /> At a meeting with the media to report on the city property market in the first half of the year, CBRE said Ho Chi Minh City was one of the top three flexible office markets in the Asia Pacific.<br /> <br /> Of its total office space, flexible office accounted for two per cent at the beginning of this year, and would increase to five per cent by the end of this year, it said.<br /> <br /> The development of the market is owed to the diverse range of business models in Vietnam, according to a CBRE executive.<br /> <br /> A representative of batdongsan.com.vn, an online channel providing information about the real estate market, told Viet Nam News the market had grown strongly and would further accelerate in future.<br /> <br /> It was no more a preserve of small companies with large foreign players having made an entry, he said, citing the example of the multinational Regus, which had opened 10 offices in the country.<br /> <br /> "The development of co-working space is an unavoidable trend since office space supply in big cities like Hanoi and Ho Chi Minh City cannot meet demand.<br /> <br /> Besides, co-working is suitable for Vietnamese companies, who are mostly small and medium-sized enterprises."<br /> <br /> "The market would continue to grow in terms of quality as well as size," he said.<br /> <br /> Companies would not only offer space in old places but also in Grade A and Grade B office buildings, he said.<br /> <br /> Speaking to Viet Nam News, a Savills executive said the co-working segment in Ho Chi Minh City had grown at 90 per cent a year for the last two years and had around 37,000sqm to rent, mostly in the central area.<br /> <br /> This growth was impressive compared with other markets in the region like Singapore and Hong Kong, he said.<br /> <br /> The market now has many famous foreign brand names like WeWork, Up, Dreamplex, Regus, Compass and Kloud.<br /> <br /> The market would continue to develop strongly thanks to demand from local and foreign companies who want to cut cost or are in the first stages of studying the market, he said.<br /> <br /> The status of the market can be clearly seen from the performance of the companies in the industry.<br /> <br /> A start-up offering co-working space, Toong is now a successful company which has been growing and growing.<br /> <br /> Toong CEO and founder Duong Do also said: "All offices the company has in Vietnam achieved high occupation rates of 85-100 per cent six weeks after opening."<br /> <br /> Duong said his company was planning to offer another 6,000sqm of space in Vietnam, 50,000sqm in Ho Chi Minh City by next year.<br /> <br /> "Our clients are from 36 sectors. They are individual clients and companies with up to 200 workers, both newly established and long-standing."<br /> <br /> The short supply of traditional office space is also cited as a major reason for the industry's growth.<br /> <br /> CBRE said the Ho Chi Minh City office market saw no new supply in the second quarter of this year in either grade.<br /> <br /> Due to limited supply in the first half, rents for both grades A and B continued to increase but at a moderate pace, especially Grade A. VIET NAM NEWS

Researchers: HCMC office space market growing strong

The flexible office market in Ho Chi Minh City comprising co-working and serviced offices is among the fastest growing in the Asia Pacifi...

Read more »

Developers in Bangkok go green and reap the benefits

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-OkzViKm3cNM/XVWWdSUUcHI/AAAAAAAAARQ/HMZUSMKTot0R-okCZpNgf6XDhHbN-H29wCLcBGAs/s1600/10-bk.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-OkzViKm3cNM/XVWWdSUUcHI/AAAAAAAAARQ/HMZUSMKTot0R-okCZpNgf6XDhHbN-H29wCLcBGAs/s640/10-bk.jpg" width="640" /></a></div> <br /> Property developers in Bangkok concerned about the environment are investing in the "green architecture" of Leadership Energy and Environmental Design (Leed), says one of the principals at JLL, an international real estate consultancy company.<br /> <br /> There are currently 1.26 million sqm of Leed office space in the Thai capital.<br /> <br /> Dexter Norville, one of the bosses at JLL, said on Monday that 877,000sqm of that space – nearly 70 per cent – is managed by JLL.<br /> <br /> Excluding owner-occupied offices, the Leed-certified gross floor area in Bangkok totals 630,000sqm, of which 577,000 (more than 90 per cent) is managed by JLL.<br /> <br /> Leed is one of the world's most popular green-building certification programs. Developed by the US Green Building Council (USGBC), it features rating systems for design, construction, operation and maintenance to help building owners and managers be environmentally responsible and use resources efficiently.<br /> <br /> "While Leed certification generally focuses on the physical building and its impact on the environment, the Well Building Standards are a series of certifications by the International Well Building Institute that broadly assess the building's contribution to the wellness of people who use it," said Norville.<br /> <br /> "Well certification is becoming increasingly popular among landlords and developers."<br /> <br /> JLL is management consultant on two projects pursuing Leed certification – One City Centre, a Grade A office development that is a Raimon Land-Mitsubishi Estate joint venture scheduled for completion in 2022, and One Bangkok, Thailand's largest mixed-use development project, a joint venture between TCC Asset and Frasers Property Holdings.<br /> <br /> One Bangkok is also seeking Well certification.<br /> <br /> Norville says Leed buildings involve high-quality standards and must also achieve the operating goals for which they were built. Some also receive Leed Ebom (Existing Building Operation and Maintenance) certification, showing that the landlord and manager are committed to sustainability.<br /> <br /> Chakrapan Pawangkarat, Norville's fellow chief of Property and Asset Management at JLL, said landlords are increasingly aware that sustainable development offers a competitive advantage.<br /> <br /> In fact, both landlords and occupiers benefit from being recognised for their commitment to social responsibility and cost-savings through more efficient energy consumption.<br /> <br /> A growing number of developments incorporate green features to obtain certification from reliable programmes such as Leed by the USGBC and the Thai Rating of Energy and Environmental Sustainability, which was established by the Thai Green Building Institute in collaboration between the Association of Siamese Architects and the Engineering Institute of Thailand.<br /> <br /> "To achieve their sustainability ambition, many developers and owners seek help from consultants and experts to assist with developing, operating and managing their green real estate. This has contributed significantly to our growing portfolio of Leed-certified buildings that we manage in Thailand, building on our expertise in this area," Chakrapan says. THE NATION (THAILAND)

Developers in Bangkok go green and reap the benefits

Property developers in Bangkok concerned about the environment are investing in the "green architecture" of Leadership Energy a...

Read more »

Demand in Beijing holds up prices of housing in second quarter, says JLL

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-VBDVFe1zu4w/XVWWBxRCzRI/AAAAAAAAARI/ahMo1T0Uh9cjgXJNZFZZt91kC0XLUnyxQCLcBGAs/s1600/10-jll.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-VBDVFe1zu4w/XVWWBxRCzRI/AAAAAAAAARI/ahMo1T0Uh9cjgXJNZFZZt91kC0XLUnyxQCLcBGAs/s640/10-jll.jpg" width="640" /></a></div> <br /> Beijing's high-end primary prices remain steady in the second quarter despite downward economic pressure sustained by stable demand, a report from international real estate consultancy company JLL showed.<br /> <br /> Primary luxury apartment prices were largely flat, recording only a marginal decrease of -0.3 per cent quarter-on-quarter.<br /> <br /> Several recently launched projects slightly lowered prices to achieve higher sales rates. Meanwhile, stable demand supported high-end secondary prices, which rose slightly by 0.7 per cent quarter-on-quarter, according to statistics from JLL.<br /> <br /> CATHAY is a high-end estate developer currently involved in projects along the southern third ring road in the Chinese capital.<br /> <br /> Li Chengwen, salesperson at the company, says current buyers are usually those seeking an upgrade in living conditions – the majority of purchases through CATHAY are for personal use.<br /> <br /> Since opening for sale in November last year, the project has a selling rate of 95 per cent, with the average sales price of 130,000 yuan ($18,900) per square metre.<br /> <br /> "There are no pure investors in the current market now, especially in the high-end market," said Li. "Our buyers, most in the financial sector, are very rational about the market."<br /> <br /> Most industry insiders believe the housing prices will remain stable for the rest of the year.<br /> <br /> Mi Yang, acting head of research for Beijing at JLL, said: "Under the recently reaffirmed 'One City, One Policy' mandate, local authorities are expected to become slightly more flexible on policy to support steady prices in the near term, in a bid to maintain demand as the current economic environment weighs on the market.<br /> <br /> "When we consider current conditions, increased flexibility on policy may help better manage the market to help smooth the path ahead." CHINA DAILY

Demand in Beijing holds up prices of housing in second quarter, says JLL

Beijing's high-end primary prices remain steady in the second quarter despite downward economic pressure sustained by stable demand, ...

Read more »

Prices of Jakarta office buildings set to remain stagnant until next year

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-M4agKHvxJ3A/XVWVrcWMKII/AAAAAAAAARA/vMjPcnrs6DsR5W0AZQqU7JMsRaQFpKAbACLcBGAs/s1600/10-jakartaoffice.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-M4agKHvxJ3A/XVWVrcWMKII/AAAAAAAAARA/vMjPcnrs6DsR5W0AZQqU7JMsRaQFpKAbACLcBGAs/s640/10-jakartaoffice.jpg" width="640" /></a></div> <br /> Prices for strata-title office buildings in Jakarta are expected to remain stagnant until next year as demand is expected to stay flat amid sluggish growth of new investments in the country, according to a property consultant.<br /> <br /> "The average office price tends to be flat or moderate, at least until the end of 2020, even though the supply is limited," Eko Arfianto, Indonesia senior research manager at Colliers International, told the Jakarta Post last week.<br /> <br /> Prices for strata-title office buildings in Jakarta fell by eight per cent year-on-year in the second quarter of this year due to sluggish demand, he said, adding that since January, sales have totalled 15,000sqm.<br /> <br /> The sluggish growth is partly due to weak growth in new investments. According to the Investment Coordinating Board, the realisation of total investments in the country rose only 5.3 per cent year-on-year to 195.1 trillion rupiah ($13.95 billion) in the second quarter of this year.<br /> <br /> Of the total, domestic investment rose 14.1 per cent year-on-year to 76.4 trillion rupiah, while foreign investment dropped 0.9 per cent to 107.9 trillion rupiah.<br /> <br /> According to Colliers' research data, based on available space, including sales prices in the secondary market, the average selling price has been relatively similar over the past few years, ranging from 40 million rupiah to 100 million rupiah per square metre.<br /> <br /> On average, selling prices in the Central Business District (CBD) were between 54 and 55 million rupiah per square metre, and between 38 and 40 million rupiah in less elite areas.<br /> <br /> After a period of excess supply from 2015 to last year, the number of office buildings is expected to grow moderately over the next three years. Including newly operating buildings, total office supply during the 2019-2021 period is projected to reach 900,000sqm, about 30 per cent lower than the total supply in 2015-2018.<br /> <br /> "We expect the sales volume to be modest, so price increases will be mainly triggered by the influx of new strata-title buildings with higher quality and prices," Ferry Salanto told a press briefing.<br /> <br /> Colliers stated that it had yet to record any new office projects that began construction during the first six months of this year. Thus, supply in the CBD until 2021 will be contributed by office buildings that are under construction.<br /> <br /> Since the downturn period in 2015, the average occupancy rate in the CBD has been relatively steady over the past few years. Occupancy has been relatively stable at around 82.5 per cent in the first quarter of this year. And despite a large projected supply in the second half of this year, occupancy levels are expected to stand at 82 per cent up to the end of the year.<br /> <br /> However, Colliers expects an additional 190,000sqm in the next semester. By the end of this year, the total office supply in the CBD will grow by 5.6 per cent year-on-year.<br /> <br /> The occupancy of premium and Grade A office buildings is currently about 80 per cent, about six per cent lower than Grade B and C buildings. The current market situation helps tenants move to new buildings that provide more competitive rent.<br /> <br /> According to Colliers research data, some premium and Grade A office buildings slowly experienced a decline in tenants due to tighter competition. As of the second quarter of this year, the average rent in the CBD was registered at 284,866 rupiah per square metre, a 2.1 per cent drop quarter-on-quarter.<br /> <br /> "As the annual supply projection decreases from previous years, rent in the CBD might improve, albeit slightly," Ferry said.<br /> <br /> Meanwhile, outside the CBD, the average rent stood at 194,652 rupiah per square metre in the second quarter, a 0.6 per cent decline quarter-on-quarter. Because mostly Grade B office buildings started operating in the same period, rent is forecasted to drop 1.5 per cent to two per cent year-on-year at the end of this year.<br /> <br /> Total office space inventory stood at 3.3 million square metres without any office buildings being completed in the second quarter of this year. However, a supply pipeline of around 300,000sqm is waiting to be operational in the second half of the year. THE JAKARTA POST

Prices of Jakarta office buildings set to remain stagnant until next year

Prices for strata-title office buildings in Jakarta are expected to remain stagnant until next year as demand is expected to stay flat am...

Read more »

Seoul apartments resilient to property measures since 2017

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-hwxOlfAlOuM/XVWVOGNlLWI/AAAAAAAAAQ4/HmK2rgdl66wU8hQ4fGAlzmyANZ27yKXwQCLcBGAs/s1600/10-seoulapartment.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-hwxOlfAlOuM/XVWVOGNlLWI/AAAAAAAAAQ4/HmK2rgdl66wU8hQ4fGAlzmyANZ27yKXwQCLcBGAs/s640/10-seoulapartment.jpg" width="640" /></a></div> <br /> South Korea's Moon Jae-in government has introduced stern regulations on rebuilding old apartments or redeveloping old areas in Seoul, leaving housing redevelopment projects effectively blocked in the capital.<br /> <br /> The city authorities have also fallen behind in increasing housing supply for citizens.<br /> <br /> The central government has bolstered rules on mortgages under the guise of curbing apartment prices in the city. The ceiling of bank loans for housing purchases has sharply been lowered as part of a set of anti-property speculation measures.<br /> <br /> And it has increased apartment supply in satellite cites in Gyeonggi province by designating several areas as locations for a third phase of new towns.<br /> <br /> Officials argued that these policies would have the effect of stabilising heated housing prices in Seoul. The policies came after prices of apartments in some districts, including Gangnam, soared by 50 per cent or more between 2016 and last year.<br /> <br /> All the while, since Moon took office in May 2017, the benchmark interest rate has stayed under two per cent.<br /> <br /> While some commenters online had said that housing prices would eventually plunge under state-led anti-speculation measures, some had predicted a bounce back after several month-long periods of adjustment.<br /> <br /> Seoul apartment prices have already begun to rebound, less than a year since the Moon administration unveiled its eighth round of policies to stabilise the real estate market on September 13.<br /> <br /> Prices of apartments in Seoul climbed for a second consecutive week, according to the Korea Appraisal Board.<br /> <br /> An apartment unit of 60sqm in Hannam-dong in central Seoul's Yongsan district recently traded at 807 million won ($687,000), which exceeds the former record of 740 million won for the same size unit.<br /> <br /> An apartment of 96sqm in Mapo district sold at 1.1 billion won, breaking the former high of 900 million won.<br /> <br /> The climb in apartment prices, initiated in Gangnam and Seocho districts, has spread to Mapo, Yongsan and Seongdong. Other districts in the capital show symptoms of rebound by halting the decline of the first half.<br /> <br /> Data from the KAB showed that apartment prices rose in 14 out of the 25 districts in Seoul during the second week of July.<br /> <br /> According to Real Estate 114, Seoul apartment prices increased 0.1 per cent as of July 12 on a week-to-week basis. Songpa posted 0.36 per cent growth, with Gangnam at 0.14 per cent, Gwangjin at 0.13 per cent, Gangdong at 0.11 per cent, Dobong at 0.07 per cent and Mapo at 0.06 per cent.<br /> <br /> A university professor was quoted by an economic news daily as saying that "consumers have already known that the government policies would bring about shortage of supply, and thus, housing prices will grow further in the coming years."<br /> <br /> The Land Ministry has hinted at adopting a apartment-price "ceiling" per unit area of floor space in Seoul, when builders in the private sector initially sell to households via housing subscription system.<br /> <br /> While some officials claim the regulatory ceiling – as a fresh anti-speculation action – would block a further hike in apartment prices, analysts and online commenters remain sceptical.<br /> <br /> "The upper ceiling restricted by the government would cause more shortage in supply as constructors would hesitate to build apartments," said a research analyst in Yeouido sub-district.<br /> <br /> He said the property market should also be dependent upon market principles – not by artificial measures – like other consumer goods.<br /> <br /> "The curbing of apartment prices would be possible through levying heavier taxes on multiple-home owners, raising key interest rates and increasing the supply in proportion to the demand," said the analyst.<br /> <br /> A real estate agent in Seoul said the interest rate, under two per cent, is something that homeowners with mortgages still appear to be willing to tolerate. "In addition, they are pinning their hopes on a potential future policy that might reinvigorate the economy amid low GDP [gross domestic product] growth rates."<br /> <br /> The evidence indicates that there is little reason for homeowners to rush sales by lowering their asking prices – regardless of whether they own a single property or multiple properties.<br /> <br /> As for new towns, fostered in satellite cities, many agree that the new residential cities have brought the effect of reducing the population of Seoul and spiralling property prices.<br /> <br /> But some of the cities have been stigmatised as "bed towns" that lack self-sufficiency. A commenter said, "Amid continuous creation of bed towns in Gyeonggi Province [surrounding Seoul], apartments in Seoul will continue to lay golden eggs." THE KOREA HERALD

Seoul apartments resilient to property measures since 2017

South Korea's Moon Jae-in government has introduced stern regulations on rebuilding old apartments or redeveloping old areas in Seoul...

Read more »

Vietnamese ministry plans to release quarterly reports on property market

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-kRo7s7XbK1o/XVWUwiA1pUI/AAAAAAAAAQw/u0dRa0o4u007_IruEfGTjM_h-xN2JPRlACLcBGAs/s1600/property_market_in_vn.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-kRo7s7XbK1o/XVWUwiA1pUI/AAAAAAAAAQw/u0dRa0o4u007_IruEfGTjM_h-xN2JPRlACLcBGAs/s640/property_market_in_vn.jpg" width="640" /></a></div> <br /> Vietnam's Ministry of Construction plans to start releasing quarterly reports on the domestic real estate market to increase transparency, Minister of Construction Pham Hong Ha said in a ministry meeting late last week.<br /> <br /> The quarterly report is a basis for building a database on housing and local property market because information about those factors is unclear, according to Ha.<br /> <br /> The ministry will follow the local market and implement a plan to review the market, forecasting market trends in the medium term and proposing solutions to ensure the health of the property market.<br /> <br /> Director of the ministry's Housing and Real Estate Market Management Department Nguyen Trong Ninh said the ministry aimed to complete a project on economic security in housing and real estate market to submit to Prime Minister Nguyen Xuan Phuc in the third quarter of this year.<br /> <br /> The social housing programme for low-income people in urban areas and workers in industrial parks has so far supplied 34 per cent of a total of 12.5 million square metres that needs to be completed by next year.<br /> <br /> The programme must produce the remaining of 8.26 million square metres by next year but it faced difficulties in mobilising capital for the construction, Ninh said.<br /> <br /> Ha said solutions were needed to develop social housing products, cheap commercial apartments and rental apartments to complete goals on social housing. The solutions should focus on supply and financial support for buyers.<br /> <br /> In the first half of this year, the construction industry had 8,711 newly-established enterprises, accounting for 13 per cent of national newly established enterprises. Of which, there were 4,014 real estate trading companies, a year-on-year increase of 22 per cent.<br /> <br /> <b>Attracting FDI</b><br /> <br /> The real estate market attracted considerable domestic and foreign investment capital, including foreign direct investment (FDI) worth $6.6 billion. The FDI capital accounted for 18.6 per cent of total FDI to the nation, ranking second after the manufacturing and processing industry.<br /> <br /> All property projects attracted total capital of 4.8 quadrillion dong ($206 billion). Outstanding loans for real estate projects by the first quarter of this year reached 462 trillion dong.<br /> <br /> Construction activity grew at 7.85 per cent compared to the same period of last year and the growth of trading real estate products increased by 4.43 per cent. Average housing area nationwide is about 24.25sqm of floor per person, a year-on-year increase of 0.25sqm.<br /> <br /> Ha said although the construction industry's growth was quite good, it did not meet its targets in the first half of this year. In fact, construction of some real estate projects, especially in Hanoi and Ho Chi Minh City, were delayed, leading to a reduced supply. Property prices in some areas also increased rapidly.<br /> <br /> If those situations were not resolved, they would harm the property market, he said. VIET NAM NEWS

Vietnamese ministry plans to release quarterly reports on property market

Vietnam's Ministry of Construction plans to start releasing quarterly reports on the domestic real estate market to increase transpar...

Read more »

Regulator implements measures to stabilise China housing market

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-F6oL8uGH2XU/XVWT_EZzGVI/AAAAAAAAAQo/9Ogf07cbGWg-gdev4-PkiW6fiNJ-Zvk_QCLcBGAs/s1600/11-chinahousing.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-F6oL8uGH2XU/XVWT_EZzGVI/AAAAAAAAAQo/9Ogf07cbGWg-gdev4-PkiW6fiNJ-Zvk_QCLcBGAs/s640/11-chinahousing.jpg" width="640" /></a></div> <br /> As Chinese property developers are flocking to issue offshore bonds, the nation's top regulator has stepped up efforts to prevent financial risks and stabilise the real estate sector, said experts.<br /> <br /> Chinese real estate enterprises issued 604.7 billion yuan ($87.9 billion) worth of bonds domestically and overseas so far this year, among which $38.4 billion were offshore, reaching a historic high in terms of volume, and it is approaching the total amount of 2017, according to a report by Chinese financial information service provider Wind Information.<br /> <br /> The financing spree is continuing in July with 15 property developers announcing overseas financing plans to raise more than $10 billion in total until now, according to Centaline Property research findings.<br /> <br /> Closely watching the financing activities, the National Development and Reform Commission (NDRC) put restrictions on Chinese property companies' offshore fundraising last Friday which required that property developers can only issue foreign currency bonds to refinance mid-to long-term debt that is due within the next 12 months.<br /> <br /> "The decision is a cautious move given the financial risks with regard to the high amount of offshore bonds this year," said Yan Yuejin, director of Shanghai-based E-house China Research and Development Institution.<br /> <br /> Being a capital intensive industry, real estate developers have a good appetite for financing through various channels including loans, bonds and equity.<br /> <br /> Amid the mounting expectations of more restrictive measures to rein in onshore financing, many property developers are turning their attention overseas as an alternative.<br /> <br /> Along with the polarising real estate sector, major developers are in need of a large amount of capital to sustain their expansion in scale and market share, and, as a result, property developers' liability continues to rise.<br /> <br /> The 176 major Chinese real estate companies' combined liability with interest increased from 4.5 trillion yuan to 6.8 trillion yuan between 2016 and last year, according to data collected by Shanghai-based China Real Estate Information Corp.<br /> <br /> <b>Gradual tightening</b><br /> <br /> Since the restrictions for offshore financing were eased by the NDRC in September 2015, a growing number of Chinese enterprises have taken this route, and this led to gradual tightening measures on real estate developers since 2017 in order to prevent financial risks, according to a report by Tianfeng Securities.<br /> <br /> Chinese property developers have a total of more than $30 billion worth of debt due within a year. Evergrande tops the list as the most heavily indebted group with more than $18 billion in total.<br /> <br /> Coupled with the market expectations of more stringent financing policies and high amount of due debt, as well as the land market sales fever, property developers have accelerated their financing since the fourth quarter of last year, according to Centaline Property Agency Ltd chief analyst Zhang Dawei.<br /> <br /> "The trend became even clearer after the Spring Festival, when real estate companies' fundraising activities increased significantly after the credit market loosened," said Zhang.<br /> <br /> The nation's 50 major cities saw land sales worth 2.15 trillion yuan so far this year, an increase of 15.9 per cent year-on-year, according to Centaline data.<br /> <br /> Despite the deleveraging in China since early last year, 63 per cent of respondents said that while banks and regulatory bodies have been more stringent in terms of companies' debt issuance, their ability to secure required financing remains acceptable, according to a survey conducted by Colliers International.<br /> <br /> With capital flow controls expected, 58 per cent of respondents were inclined to raise money in the domestic market, while 33 per cent will look for sovereign debt as the major source of funding, added the survey that polled fund managers, developers, state-owned enterprises, banks and insurers, and private investors both in China and overseas.<br /> <br /> A total of 6.16 trillion yuan was invested in the real estate sector from January to June, up 10.9 per cent year-on-year, among which 73.3 per cent, or 4.52 trillion yuan went to residential properties, according to National Bureau of Statistics data.<br /> <br /> "There has been some property developers financing excessively. Such activities have occupied too much credit resources and reduced the efficiency of capital, as well as hiked the risks in property investment," Guo Shuqing, head of the China Banking and Insurance Regulatory Commission, said during the Lujiazui Forum in Shanghai in June.<br /> <br /> Guo added that the real estate sector is sustainable, but housing is for living in, not for speculation. History has proved that heavy cost will be paid if a nation's economy growth relies heavily on the property sector. CHINA DAILY

Regulator implements measures to stabilise China housing market

As Chinese property developers are flocking to issue offshore bonds, the nation's top regulator has stepped up efforts to prevent fin...

Read more »

Fitch: Singapore buildings sector to grow 3.2% in 2019, but risks abound

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-nCXHmMD6IBo/XVWR3RLbVWI/AAAAAAAAAQc/5NklQvNHDYsXVs0zf_EjNtM2SE8O85CFwCLcBGAs/s1600/11-fitch.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-nCXHmMD6IBo/XVWR3RLbVWI/AAAAAAAAAQc/5NklQvNHDYsXVs0zf_EjNtM2SE8O85CFwCLcBGAs/s640/11-fitch.jpg" width="640" /></a></div> <br /> The residential and non-residential buildings sector in Singapore will grow at 3.2 per cent this year and 2.3 per cent next year, supported by a strong pipeline of planned projects, according to Fitch Solutions Macro Research.<br /> <br /> But the firm warned of risks to its forecasts which include uncertainty surrounding US-China trade tensions and the possibility of a recession occurring within the next few quarters.<br /> <br /> Fitch raised its growth forecasts for the overall buildings sector in a report on Wednesday, revising it up by 0.2 percentage points from 3.0 per cent previously for this year due to a pipeline of projects currently under planning and construction coming through from last year.<br /> <br /> In particular, the faster pace of growth will be driven by residential buildings, which Fitch now predicts to grow at 3.2 per cent and 1.5 per cent in 2019 and 2020 respectively, up from its previous forecast that the residential sector would shrink by a respective 0.7 per cent and 0.8 per cent.<br /> <br /> Over the next two years, construction activity within the residential sector will be stronger than the non-residential sector, Fitch noted.<br /> <br /> About $9 billion worth of private and public residential building contracts were awarded last year – almost double the $4.8 billion of commercial and industrial contracts awarded during the same year.<br /> <br /> For public residential buildings, the government has been consistently announcing new build-to-order projects, with six projects launched in the first half of this year and another five more scheduled by the end of the year.<br /> <br /> In the private residential sector, after 11 consecutive quarters of decline in the number of residential units planned and under construction, there has been a rebound in supply since the fourth quarter of 2017, Fitch noted.<br /> <br /> Likewise, the non-residential sector has seen a slight rebound in the pipeline of office, industrial and retail space since 2017’s fourth quarter which will also boost growth this year.<br /> <br /> For next year, however, the firm made a downward revision in its growth outlook for the overall buildings sector, from 2.6 per cent to 2.3 per cent.<br /> <br /> This is because of a slight drop in the number of newly planned residential units observed in the first quarter of this year, as well as the latest property cooling measures taking effect.<br /> <br /> "We anticipate a drop in demand as a result of these measures, which will slow down the pace of the rollout of property development projects from 2019 onwards," Fitch said.<br /> <br /> In terms of downside risks, Singapore’s non-oil domestic exports have slid since March 2019 and private consumption remains subdued, Fitch noted.<br /> <br /> "Our country risk team currently forecast Singapore’s economy to grow by 2.2 per cent in 2019, and warns that the prolonged implementation of tariffs by US on Chinese goods will eventually have negative impact on growth," its report said.<br /> <br /> The probability of a recession within the US has spiked since the start of this year, according to data from the Federal Reserve Bank of New York, and this will have global implications including a slowdown in trade which will affect growth of the Singapore economy, said Fitch.<br /> <br /> "Hence, fears of an impending slowdown may further suppress demand for residential buildings, and also, with business confidence expected to fall, growth of the non-residential buildings will also be exposed to significant downside risks," it added.<br /> <br /> Falling housing loan growth is an early indication of a possible slowdown in growth of the residential buildings sector.<br /> <br /> Data from the Monetary Authority of Singapore showed that although the total amount of housing and bridging loans had been steadily rising since January 2016, growth of these loans entered negative territory since January this year.<br /> <br /> "This is a possible signal that demand for housing is waning, a phenomenon likely linked to the effects of property cooling measures, as well as fears of recession," Fitch said.<br /> <br /> Fitch Solutions Macro Research is a unit of Fitch Group. THE STRAITS TIMES (SINGAPORE)

Fitch: Singapore buildings sector to grow 3.2% in 2019, but risks abound

The residential and non-residential buildings sector in Singapore will grow at 3.2 per cent this year and 2.3 per cent next year, support...

Read more »

EVFTA gives VN industrial real estate market a boost

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-Enk9_suye7k/XVWOKir1qhI/AAAAAAAAAQQ/Pmc4TDMvCrAaK3LqjbqE3nHo0Tp0BsfAQCLcBGAs/s1600/10-evfta.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-Enk9_suye7k/XVWOKir1qhI/AAAAAAAAAQQ/Pmc4TDMvCrAaK3LqjbqE3nHo0Tp0BsfAQCLcBGAs/s640/10-evfta.jpg" width="640" /></a></div> <br /> The EU-Vietnam Free Trade Agreement (EVFTA) will have a positive impact on Vietnam's real estate market, especially the industrial real estate, experts said.<br /> <br /> EVFTA is a landmark deal that promotes the industrial and export sectors in Vietnam by removing 99 per cent of tariffs on goods from both sides.<br /> <br /> Vietnam's industrial zones have been attracting attention from investors, especially those from Europe.<br /> <br /> Savills Vietnam deputy managing director Troy Griffiths said the trade deal showed the Vietnamese government's commitment to turning the country into a leading manufacturing destination in Asia.<br /> <br /> According to Griffiths, bilateral trade between Vietnam and the EU will rise as a result of the deal, bringing an increase in foreign direct investment and jobs and offering more opportunities in all real estate segments.<br /> <br /> By facilitating the application of the latest production technologies and strengthening worker training, the Vietnamese government has gradually eliminated fears among foreign businesses over feasibility, a lack of skilled human resources and rising costs.<br /> <br /> Improving the transparency of the business environment will help reduce investors' concerns and raise production quality standards in Vietnam.<br /> <br /> Another report from VNDirect also showed industrial real estate could benefit from the shift of factories from other countries to Vietnam as investors seek preferential policies from free trade agreements (FTAs) including EVFTA.<br /> <br /> Industrial property is considered the backbone for any developing manufacturing economy.<br /> <br /> Foreign property consulting firm CBRE said industrial parks (IPs) will continue to grow. A standard occupancy rate of about 70 to 90 per cent will be maintained and infrastructure will play a decisive role in the choice of rental locations.<br /> <br /> New IPs are scheduled to be established both in the north and south of Vietnam.<br /> <br /> Nguyen Tran Nam, former deputy minister of construction, said industrial real estate had the potential to develop in the short, medium and long term if investors took the opportunity and benefit from government policies.<br /> <br /> He said the government should renew their management methods to help industrial real estate develop.<br /> <br /> Priority should be given to improving state management of the property market, especially the industrial real estate market, as well as following international standards. Localities should pay attention to planning on industrial land with a focus on clean and environmentally friendly IPs, he said.<br /> <br /> He addded transparency was a requirement when joining new-generation FTAs. Planning policies should minimise risks to attract foreign investors and the government should pay attention to simplifying administrative procedures.<br /> <br /> Central Institute for Economic Management (CIEM) director Nguyen Dinh Cung said Vietnam's industrial real estate was more attractive than that of most countries in the region. Low labour cost and preferential corporate tax rates would continue to prove a boon for the sector.<br /> <br /> By next year, Vietnam is expected to have around 500 IPs with a total area of 500,000ha. VIET NAM NEWS

EVFTA gives VN industrial real estate market a boost

The EU-Vietnam Free Trade Agreement (EVFTA) will have a positive impact on Vietnam's real estate market, especially the industrial re...

Read more »

South Korea mulls reining in overheated Seoul housing market

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-NPWM6k-afDU/XVWNDVaf2RI/AAAAAAAAAQE/dKvNVBg70kwITrfvqu0wKhzW8_dgZEleQCLcBGAs/s1600/10-market.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-NPWM6k-afDU/XVWNDVaf2RI/AAAAAAAAAQE/dKvNVBg70kwITrfvqu0wKhzW8_dgZEleQCLcBGAs/s640/10-market.jpg" width="640" /></a></div> <br /> With housing prices in Seoul showing clear signs of rebounding, the South Korean government is considering taking steps to rein in the overheated market.<br /> <br /> Officials at the Ministry of Land, Infrastructure and Transport said on Sunday that the ministry will intervene if housing prices in Seoul grow faster than expected on the basis of government projections.<br /> <br /> According to the Korea Appraisal Board on July 1, Seoul apartment prices had increased 0.02 per cent from a week before, ending a downward trend that went on for eight months since November, when the government's real estate speculation countermeasures took effect.<br /> <br /> Weekly fluctuations in housing prices are the standard used to determine whether there has been an excessive increase, the ministry said. If housing prices fluctuate by 0.3 per cent or more week-on-week, the government considers stepping in.<br /> <br /> "If the weekly fluctuation rate were to exceed 0.3 per cent and keep increasing, the government would deem the market to have become overheated and take further measures," said a senior official from the Transport Ministry.<br /> <br /> A weekly increase of 0.3 per cent, if it continues, adds up to a 15.6 per cent increase over the course of a year. This means one billion won ($850,000) worth of real estate in Seoul would be worth more than 1.15 billion won a year later.<br /> <br /> Last September, the government announced a series of measures to rein in soaring housing prices in Seoul, imposing additional taxes on owners of multiple homes. The measure decreased housing prices in Gangnam and other affluent areas of Seoul.<br /> <br /> Meanwhile, more than half of real estate experts expected that housing prices in Seoul will increase within a year. According to a survey from the Korea Development Institute released on Sunday, about 54 per cent of 106 surveyed experts predicted a price hike. THE KOREA HERALD

South Korea mulls reining in overheated Seoul housing market

With housing prices in Seoul showing clear signs of rebounding, the South Korean government is considering taking steps to rein in the ov...

Read more »

Singapore stays high in liveability

<div class="separator" style="clear: both; text-align: center;"> <a href="https://3.bp.blogspot.com/-bIhLSjENCoo/XAIMU8rERyI/AAAAAAAAAGk/y0vbJLcZYxcYei4iA-pn6kLH-omin27nwCLcBGAs/s1600/8-spore.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://3.bp.blogspot.com/-bIhLSjENCoo/XAIMU8rERyI/AAAAAAAAAGk/y0vbJLcZYxcYei4iA-pn6kLH-omin27nwCLcBGAs/s640/8-spore.jpg" width="640" /></a></div> <br /> <b><i>The Straits Times/ANN</i></b>: Singapore's score in a global ranking of liveable cities has stagnated since 2011, which may make a difference to highly mobile top talent.<br /> <br /> But it remains one of the world's more liveable cities, ranking 46 out of 140 cities assessed, while Hong Kong was 43.<br /> <br /> Singapore did particularly well in providing a safe and stable habitat, but scored lower in culture, environment and healthcare in the Economist Intelligence Unit's (EIU) annual Liveability Ranking, which began in 2002. In response to queries, the EIU supplied the results since 2011.<br /> <br /> Although Singapore's overall ranking might look middling, it is not cause for alarm, said experts.<br /> <br /> "Singapore has a high score and the EIU classifies it in the top tier of liveability," said Simon Baptist, EIU chief economist and managing director for Asia.<br /> <br /> Singapore scored 88.7 out of a possible 100, based on five areas: stability, healthcare, culture and environment, education and infrastructure.<br /> <br /> Its score has not changed since 2011, though its ranking improved from 51 to 46 because other cities fell behind in stability – factors such as crime rate, risk of terrorism and risk of social unrest.<br /> <br /> Singapore performed worst in the area of culture and environment, with a score of 76.6.<br /> <br /> Not much can be done about environmental factors: humidity and temperature, and "discomfort of climate to travellers".<br /> <br /> But its cultural score – which includes factors such as corruption, censorship, sports, the arts, and food and drink – can be improved, said Baptist.<br /> <br /> "Singapore is dragged down due to its high level of censorship, which means the local media is less diverse and interesting, and residents do not have the same possibility to engage in public debate or get involved in campaigning or NGOs."<br /> <br /> Singapore's healthcare score also lags behind some cities despite high quality healthcare, he added. This is mainly because of a lower number of doctors and hospital beds per capita, and lower public healthcare spending as a percentage of gross domestic product.<br /> <br /> This may affect expatriates here on local packages, but will have less impact on those with private healthcare insurance, said expat expert Yvonne McNulty.<br /> <br /> Liveability has been a focus of the Government, from efficient transport to vibrant public spaces.<br /> <br /> This is both to improve citizens' everyday lives and to boost competitiveness by ensuring Singapore is an attractive place to live for top talent.<br /> <br /> OCBC economist Selena Ling said liveability may make a difference for top global talent, who can choose where to go.<br /> <br /> But she and other economists said foreign investors' top concerns are the domestic cost environment, overall availability of talent and competitive advantages such as good corporate governance and transport links.<br /> <br /> "Liveability is more like icing on the cake after the basics have been taken care of." Otherwise, places such as Australia and Canada, which rank high for liveability, would top competitiveness rankings – which is not the case.<br /> <br /> DBS economist Irvin Seah agreed. "I think we've reached a certain stage of development where we can feel more confident about the standards of living in Singapore.<br /> <br /> "If there is any ranking that we need to focus on, it'll be those pertaining to innovation and overall economic competitiveness."

Singapore stays high in liveability

The Straits Times/ANN : Singapore's score in a global ranking of liveable cities has stagnated since 2011, which may make a differenc...

Read more »

China skyscraper with huge waterfall receives a torrent of ridicule

<div class="separator" style="clear: both; text-align: center;"> <a href="https://4.bp.blogspot.com/-aIOedPHizzw/XAIKkNeRwtI/AAAAAAAAAGY/w2saGxlKTywVcCfwcdakDh1xDgEUtwGlACLcBGAs/s1600/7-chinaskyscraper.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://4.bp.blogspot.com/-aIOedPHizzw/XAIKkNeRwtI/AAAAAAAAAGY/w2saGxlKTywVcCfwcdakDh1xDgEUtwGlACLcBGAs/s640/7-chinaskyscraper.png" width="640" /></a></div> <br /> A skyscraper in southwest China that boasts what its owner calls the world's largest man-made waterfall has become the latest example of over-the-top architecture to draw national ridicule.<br /> <br /> The tower in the city of Guiyang was built with a spectacular 108-metre (350-feet) cascade tumbling down its face – but cash flow could prove a problem for the ostentatious design.<br /> <br /> Although the Liebian International Building is not yet finished, the water feature was completed two years ago.<br /> <br /> However it has only been turned on six times, with the owners blaming the high cost – 800 yuan ($120) per hour – of pumping water to the top of the 121-metre-high structure.<br /> <br /> Constructed by the Ludi Industry Group, the building will house a shopping mall, offices and a luxury hotel.<br /> <br /> Its signature artificial waterfall uses runoff, rainwater and groundwater collected in giant underground tanks.<br /> <br /> The company says the feature pays homage to the local region's rugged nature, but Chinese netizens have mocked the project as a waste of money.<br /> <br /> "If they could just turn it on once every few months, the company would save on cleaning windows," one user wrote on China's Twitter-like social network Weibo.<br /> <br /> <b>'Weird architecture'</b><br /> <br /> China's rapid economic growth has been accompanied by a construction boom, often including outlandish buildings that are criticised as a waste of public or shareholder funds.<br /> <br /> The Beijing headquarters of state broadcaster China Central Television features a futuristic design now nicknamed "The Big Underpants" due to its resemblance to a giant pelvis.<br /> <br /> Web users also noted the offices of the People's Daily newspaper in the capital looked like a penis during construction, and last year a building on the campus of a water-resources university gained notoriety for resembling a toilet.<br /> <br /> The issue prompted President Xi Jinping in 2014 to call for an end to what he called "weird architecture".

China skyscraper with huge waterfall receives a torrent of ridicule

A skyscraper in southwest China that boasts what its owner calls the world's largest man-made waterfall has become the latest example...

Read more »

Market for capital office space could be saturated, says report

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-4rw5N-dEPL8/XAIKIRLQy0I/AAAAAAAAAGM/ybRZkzcOlS8AIJ7Jt-eGuRSlrwPZjM9swCLcBGAs/s1600/vattanak-capital-one-of-the-capitals-largest-office-buildings-is-shown.-a-report-from-real-estate-firm-cbre-cambodia-shows-that-the-market-for-office-space-in-phnom-penh-could-be-close-to-sa.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-4rw5N-dEPL8/XAIKIRLQy0I/AAAAAAAAAGM/ybRZkzcOlS8AIJ7Jt-eGuRSlrwPZjM9swCLcBGAs/s640/vattanak-capital-one-of-the-capitals-largest-office-buildings-is-shown.-a-report-from-real-estate-firm-cbre-cambodia-shows-that-the-market-for-office-space-in-phnom-penh-could-be-close-to-sa.jpg" width="640" /></a></div> <br /> Office space occupancy in the capital in the second quarter of this year rose slower than the first. A report from real estate firm CBRE Cambodia hinted that the market could be reaching saturation.<br /> <br /> The report, received by The Post on Wednesday, showed that office rentals as of the second quarter have topped 293,000 square metres – up five per cent from 277,000 in the first quarter.<br /> <br /> At the financial year's midpoint, total office space in Phnom Penh stood at just over 335,000 square metres.<br /> <br /> Sixteen per cent of that figure was classified as grade A space, 20 per cent grade B and 64 per cent grade C, said CBRE director Ann Sothida.<br /> <br /> However, in the second quarter there was no new office space for lease, while in the first, a new 14,350 square metre space was added to the market.<br /> <br /> Sothida said on Wednesday that the modest growth was because the market was reaching saturation.<br /> <br /> "This increase is due to the growth of domestic companies, increasing foreign direct investment and changing behaviour from renting houses or villas to office buildings instead," she said.<br /> <br /> More offices added<br /> Rental fees for grade A office buildings usually range from $28 to $38 per square metres, grade B from $18 to $28 while grade C ranges from $10 to $18.<br /> <br /> Nop Yoeus, the property manager for City Tower, which has grade B offices, said its 5,000 square metres of space is currently half occupied. He added that he did not expect occupancy to grow much this year.<br /> <br /> CBRE says it expects five new office buildings to be added to the market by year-end, which will bring the total amount of office space to nearly 400,000 square metres.<br /> <br /> A Ministry of Land Management report released on Wednesday showed that in the first six months of this year, authorities approved 1,643 construction projects with a total estimated value of $2.15 billion.

Market for capital office space could be saturated, says report

Office space occupancy in the capital in the second quarter of this year rose slower than the first. A report from real estate firm CBRE ...

Read more »

Sector gives honours for exellence at Cambodia Real Estate Awards 2018

<div class="separator" style="clear: both; text-align: center;"> <a href="https://3.bp.blogspot.com/-npxvGJQpVUU/XAIJfO_KxTI/AAAAAAAAAGE/0zD07isguXYxJGOR2ufvTZdYBJA41POpgCLcBGAs/s1600/award-winners-show-off-their-trophies-at-the-2018-cambodia-real-estate-awards-late-last-week.-supplied.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://3.bp.blogspot.com/-npxvGJQpVUU/XAIJfO_KxTI/AAAAAAAAAGE/0zD07isguXYxJGOR2ufvTZdYBJA41POpgCLcBGAs/s640/award-winners-show-off-their-trophies-at-the-2018-cambodia-real-estate-awards-late-last-week.-supplied.jpg" width="640" /></a></div> <br /> The Kingdom's first ever real estate awards took place late last week, with sector leaders saying the event would only serve to aid an already growing industry.<br /> <br /> Ten companies were given honours at the Cambodia Real Estate Awards 2018, with CBRE Cambodia being awarded the top prize this year.<br /> <br /> Ann Sothida, director of real estate at CBRE, said the program would be a boon for the property sector, making it more robust and comprehensive.<br /> <br /> The awards will give consumers more confidence when making choices about which agents or companies to use, she said. "I think that through this program, the real estate industry in Cambodia will become more robust and gain more recognition in the world."<br /> <br /> <b>'It's not easy'</b><br /> <br /> The event was organised by Realestate.com.kh, with support from both the Ministry of Economy and Finance and the Association of Cambodian Valuers and Real Estate Agencies (CVEA). Over 200 people attended.<br /> <br /> CBRE took home the most awards on the night, winning for excellence as both a property management firm and a commercial agency, as well as clinching the agency choice award.<br /> <br /> "It's not easy to get the awards. They highlight our team's efforts to maintain and manage quality buildings with over a decade's experience, " Sothida said.<br /> <br /> Sok Siphana, the head judge at the ceremony, said the annual event will contribute positively to the industry.<br /> <br /> "The winners really deserve [the awards] for being superior and setting an example for others," he said.<br /> <br /> Kim Heang, president of the CVEA, said the event was very important in promoting the image and recognising the progress of the real estate industry in the Kingdom.<br /> <br /> "We must have more events like this in the future to value and encourage outstanding individuals in Cambodia's real estate sector," Heang said.<br /> <br /> Thomas O'Sullivan, CEO of Realestate.com said the real estate sector in Cambodia had been very successful in recent years.<br /> <br /> "This affair will push the Cambodian real estate industry towards more professionalism and competition."

Sector gives honours for exellence at Cambodia Real Estate Awards 2018

The Kingdom's first ever real estate awards took place late last week, with sector leaders saying the event would only serve to aid a...

Read more »

Aeon Mall 2 is officially inaugurated

<div class="separator" style="clear: both; text-align: center;"> <a href="https://3.bp.blogspot.com/-67EoT_UTBi0/XAIJEhsrCrI/AAAAAAAAAF8/l3QETWV-2bs3heWmg3z8LJEHGqwuct-PwCLcBGAs/s1600/the-front-of-aeon-mall-2-is-shown-in-the-capitals-sen-sok-district-last-month.-hong-menea.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://3.bp.blogspot.com/-67EoT_UTBi0/XAIJEhsrCrI/AAAAAAAAAF8/l3QETWV-2bs3heWmg3z8LJEHGqwuct-PwCLcBGAs/s640/the-front-of-aeon-mall-2-is-shown-in-the-capitals-sen-sok-district-last-month.-hong-menea.jpg" width="640" /></a></div> <br /> The $120 million Aeon Mall 2, located in the capital's Sen Sok district and expected to receive 14 million visitors a year, was officially launched on Wednesday, according to the senior management of Aeonmall Co Ltd.<br /> <br /> Seiichi Chiba, senior manager of Aeonmall Co Ltd, said Aeon Mall 2 is one of the most sophisticated malls in the world.<br /> <br /> "We can say that Aeon Mall 2 is a model for the Asean region, in planning, environment, and in the use of modern technology," Chiba said at the official launch.<br /> <br /> He said with the Kingdom's strong annual economic growth, the company expects to expand, with another mall planned for Cambodia in the future.<br /> <br /> Tetsuyuki Nakagawa, managing director of Aeonmall Cambodia Co Ltd, said that since the soft launch on May 30, Aeon Mall 2 has received about 30,000 visitors per day, while that figure increased to 80,000 on Saturdays and Sundays.<br /> <br /> Aeon Mall 2 offers a range of amenities, including entertainment services , public service providers and financial centres.<br /> <br /> Currently in the Southeast Asia, there are eight Aeon malls, located in Cambodia, Indonesia, Malaysia and Vietnam, while Aeon Mall 2 is the largest, according to Chiba. He said the company expects to expand its investment to Myanmar in the future.

Aeon Mall 2 is officially inaugurated

The $120 million Aeon Mall 2, located in the capital's Sen Sok district and expected to receive 14 million visitors a year, was offic...

Read more »