Property Update (28 April 2015)

How will Asia react to Japan’s new foreign policy? |

JAPAN : John Lee, adjunct associate professor, School of Social and Political Sciences at University of Sydney, explains why the Asian region, excluding China, will likely welcome Japan’s new foreign policy.


Prices of completed apartments and condos up 0.2% in March: NUS index |

SINGAPORE : Prices of completed non-landed private homes in Singapore rose 0.2 per cent in March over February, according to the National University of Singapore (NUS) flash estimate released on Tuesday.

The sub-index for Central Region (excluding small units of up to 506 square feet or 47 square metres) rose 0.1 per cent in March.

Central Region is defined by the university’s Institute of Real Estate Studies (IRES) as districts 1-4, including the financial district and Sentosa Cove, plus the traditional prime districts 9, 10 and 11.

The sub-index for Non-Central Region (again excluding small units) rose 0.3 per cent in March.

Islandwide prices of small apartment and condo units eased 0.4 per cent, however.

IRES also published the revised index values for February, which showed overall prices falling 0.2 per cent from January, a gentler decline than the 0.3 per cent drop it earlier estimated. Read more here >>


Singapore’s growth supported by G3 recovery, offset by slowdown in China: MAS |

SINGAPORE : The growth of the Singapore economy will be supported by a firmer recovery in the G3 countries but offset by China’s slowdown, said the Monetary Authority of Singapore on Tuesday.

“A firmer recovery in the G3 will provide a broad-based boost to the external-oriented sectors of the Singapore economy,” said the MAS in its April macroeconomic review.

G3 comprises the US, Japan and the eurozone.

The G3 is forecast to grow 1.9 per cent in 2015, up from 1.3 per cent in 2014. The US is expected to grow 2.9 per cent, Japan one per cent and eurozone 1.5 per cent. In 2014, the US grew 2.4 per cent, Japan had zero growth and eurozone grew 0.9 per cent.

“However, the extent of the uplift will be capped by developments in specific markets and industries,” it said.

Uncertainties include a slowdown in China, corporate realignments in the IT industry and continued weakness in the oil-related transport engineering sectors due to a downshift in oil and gas exploration.

China is slated to grow 6.9 per cent in 2015, down from 7.4 per cent last year. Read more here >>


Asia Property Markets Benefit from 2014 Private Equity Funding Activity |

ASIA : According to CBRE, the Asia Pacific real estate private equity fund environment totaled $14 billion in 2014, its highest since the global financial crisis (GFC), though still well below the $28 billion peak recorded in 2007. CBRE is also predicting that 2015 will continue to see a positive environment for fund raising, though does not expect further significant increases given that 2013 and 2014 were both very active years. 2014 saw fund raising by 42 APAC private equity real estate funds, an increase from previous years driven by the ongoing demand for access to the region.

CBRE predicts that the majority of raised funds will translate into direct real estate investments in the region in the coming year, helping to drive up the turnover of overall capital activities by 5% in 2015.

Asia Pacific remains a major focus for international investors, with an increasing number of new groups looking at the region for the purposes of portfolio diversification and long-term investment. However, it remains challenging for cross-regional investors to invest directly in Asia Pacific due to the lack of transparency in many markets and their lack of experience in the region. Investors are therefore channeling their capital to these newly formed funds.


Read more here >>


Global Property Investors’ Focus on Europe Intensifies in 2015 |

EUROPE : According to a new report by Cushman & Wakefield, European real estate is set to stay firmly in the spotlight for global investors with a resulting two-year window of high activity and attractive relative pricing driven by improved property investment supply, portfolio restructuring, rising prices and the impact of quantitative easing.

Their report, Capital Views – The Allure of Europe, says while activity has spread rapidly around all corners of Europe from the core, on to the South and now towards Central Europe, global money has lagged behind, staying close to the biggest hub markets. The UK, Germany and France took three quarters of all global money in Europe in the past year for example. According to Cushman & Wakefield, this is now changing however, Southern Europe in particular coming on to the global radar. Spain for example is now the only country other than UK to draw capital from all global regions. This change is expected to accelerate in 2015 as global investors turn to more new markets across the region.


Read more here >>


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