Source : The Business Times, May 21, 2009
(SYDNEY) Total returns for Australian property hit a 16-year low in the latest quarter as capital values continued to drop, property research firm IPD said yesterday.
Total returns, which include income and capital growth, for all property types tumbled to a negative 1.5 per cent for the 12 months to March, the worst performance since December 1993.
Annualised capital growth dropped to a minus 7.6 per cent, the fifth consecutive quarterly fall, compared with a positive 11.6 per cent return a year ago.
'When comparing Australia with other countries, we certainly entered the downturn later but we are catching up faster,' said Goran Ujdur, director of IPD Australia.
'There is a sense that there are further value declines ahead, especially in the next major evaluation round, which is obviously at the end of financial year.'
Capital growth for Australian office buildings also shrank, posting a negative 8.1 per cent in the March quarter, compared with a positive 16.3 per cent a year ago.
Retail assets saw a smaller drop in total returns with a negative 0.8 per cent, but their capital growth logged a negative 6.9 per cent.
Mr Ujdur said that values of smaller neighbourhood shopping centres had overstretched and came down at a faster pace compared with major regional retail assets. -- Reuters
Friday, May 22, 2009
US Office Prices Fall 21% In March From '08: Moody's
Source : The Business Times, May 21, 2009
(NEW YORK) US commercial property prices fell 21 per cent in March from a year earlier and may fall further in the recession, Moody's Investors Service said.
Prices are now down almost 23 per cent from the October 2007 peak and transactions have dropped as much as 80 per cent, according to Moody's/REAL Commercial Property Price Indices issued on Tuesday. Price fell 1.7 per cent in March from February.
'Moody's expects continued weakness and possibly further declines in volume in the coming months,' the ratings company said in a statement.
Commercial real estate sales have fallen the US as banks have curtailed lending in the credit crisis. The economy has lost 5.7 million jobs since January 2008, reducing demand for office space and driving down property values.
Office prices dropped 30 per cent from their peak, including a decline of almost 20 per cent in the first quarter, Moody's said. Retail property values fell 13 per cent, while apartment and industrial prices remained about flat.
Commercial property prices in the top 10 metropolitan areas in the US outperformed the rest of the nation. Office prices in those markets, which include New York, Los Angeles, Atlanta, San Francisco, Dallas and Washington, fell 6.8 per cent this quarter from last quarter.
'Office prices in the top 10 cities peaked at the same time as the nation, the second quarter of 2007, but thus far have fallen less than half as much,' the report said.
Retail properties in the top 10 markets declined 14 per cent, 'slightly' underperforming the nation, Moody's said. Apartment prices in those markets were down 3.1 per cent in the quarter.
The Moody's/REAL indexes are based on repeat sales of properties. -- Bloomberg
(NEW YORK) US commercial property prices fell 21 per cent in March from a year earlier and may fall further in the recession, Moody's Investors Service said.
Prices are now down almost 23 per cent from the October 2007 peak and transactions have dropped as much as 80 per cent, according to Moody's/REAL Commercial Property Price Indices issued on Tuesday. Price fell 1.7 per cent in March from February.
'Moody's expects continued weakness and possibly further declines in volume in the coming months,' the ratings company said in a statement.
Commercial real estate sales have fallen the US as banks have curtailed lending in the credit crisis. The economy has lost 5.7 million jobs since January 2008, reducing demand for office space and driving down property values.
Office prices dropped 30 per cent from their peak, including a decline of almost 20 per cent in the first quarter, Moody's said. Retail property values fell 13 per cent, while apartment and industrial prices remained about flat.
Commercial property prices in the top 10 metropolitan areas in the US outperformed the rest of the nation. Office prices in those markets, which include New York, Los Angeles, Atlanta, San Francisco, Dallas and Washington, fell 6.8 per cent this quarter from last quarter.
'Office prices in the top 10 cities peaked at the same time as the nation, the second quarter of 2007, but thus far have fallen less than half as much,' the report said.
Retail properties in the top 10 markets declined 14 per cent, 'slightly' underperforming the nation, Moody's said. Apartment prices in those markets were down 3.1 per cent in the quarter.
The Moody's/REAL indexes are based on repeat sales of properties. -- Bloomberg
Najib To Pitch For Iskandar
Source : The Straits Times, May 21, 2009
JOHOR BARU: Malaysian Prime Minister Najib Razak will make a pitch for the Iskandar project as a promising venture for Singaporeans to invest in when he meets Prime Minister Lee Hsien Loong on Friday.
Malaysian Prime Minister Najib Razak (left) will make a pitch for the Iskandar project as a promising venture for Singaporeans. --PHOTO: ST
Having said that he will place cooperation in Iskandar high on his agenda, Datuk Seri Najib visited the economic corridor in Johor on Thursday, just before he travelled overland into Singapore for his introductory visit.
In the morning, he did an aerial survey of the 2,200 sq km project by helicopter. Then, he launched an environmentally-friendly 'district cooling plant', which uses a centralised air-conditioning network system to cool all the buildings in Kota Iskandar - the new administrative centre of the Johor government.
Speaking to reporters after that, he pointed out that Iskandar not only creates economic opportunities, but also reaps social benefits by maintaining a 'sustainable and balanced' environment for the next generation.
He added that his message in Singapore would be that Iskandar 'is a very promising and exciting development for Singapore to consider'.
And that assessment applies 'whether at the strategic level, for their participation at the equity and development level, or for individual Singaporeans to consider, like purchasing houses and properties,' he said.
Launched in November 2006 by former Malaysian premier Abdullah Badawi, Iskandar is Malaysia's main southern development corridor.
Mr Najib said the Malaysian government would continue to support the development of Iskandar, which has attracted RM42.6 billion in investments so far.
He also does not expect foreign direct investment to Iskandar to suffer, despite the global economic downturn.
JOHOR BARU: Malaysian Prime Minister Najib Razak will make a pitch for the Iskandar project as a promising venture for Singaporeans to invest in when he meets Prime Minister Lee Hsien Loong on Friday.
Malaysian Prime Minister Najib Razak (left) will make a pitch for the Iskandar project as a promising venture for Singaporeans. --PHOTO: STHaving said that he will place cooperation in Iskandar high on his agenda, Datuk Seri Najib visited the economic corridor in Johor on Thursday, just before he travelled overland into Singapore for his introductory visit.
In the morning, he did an aerial survey of the 2,200 sq km project by helicopter. Then, he launched an environmentally-friendly 'district cooling plant', which uses a centralised air-conditioning network system to cool all the buildings in Kota Iskandar - the new administrative centre of the Johor government.
Speaking to reporters after that, he pointed out that Iskandar not only creates economic opportunities, but also reaps social benefits by maintaining a 'sustainable and balanced' environment for the next generation.
He added that his message in Singapore would be that Iskandar 'is a very promising and exciting development for Singapore to consider'.
And that assessment applies 'whether at the strategic level, for their participation at the equity and development level, or for individual Singaporeans to consider, like purchasing houses and properties,' he said.
Launched in November 2006 by former Malaysian premier Abdullah Badawi, Iskandar is Malaysia's main southern development corridor.
Mr Najib said the Malaysian government would continue to support the development of Iskandar, which has attracted RM42.6 billion in investments so far.
He also does not expect foreign direct investment to Iskandar to suffer, despite the global economic downturn.
S'pore Buyers Get Free Rides To View UEM Properties
Source : The Straits Times, May 21 2009
A key development in Nusajaya, Puteri Harbour spans 278.4 hectares with a view of the Strait of Johor.
SINGAPORE residents already make up a substantial chunk of property buyers in the Nusajaya urban development zone of south-west Johor, but now they are being ferried in for free to further boost their numbers.
-- PHOTOS COURTESY OF UEM LAND.
Master developer UEM Land (UEML) is chartering buses to ferry interested individuals to its property sites in the area.
Said UEML managing director Wan Abdullah Wan Ibrahim: 'We actually charter buses to a collection point in Singapore and ferry these people to our property...so buyers will know what they are buying and the kind of infrastructure that we provide.'
In the past two months, UEML has held four events - two 'Super Sundays' for their hillside property Nusa Idaman and the other two for East Ledang, a residential enclave which will boast 31 themed garden spaces.
For the first Super Sunday event in March, UEML ran advertisements in Singapore on the free buses running between Jurong Point and Nusa Idaman.
Said UEML general manager for strategic marketing Zamry Ibrahim: 'We gave out cash vouchers as well for shopping. (The) response was overwhelming...about 220 Singaporeans came for the event and we collected 15 sales worth RM4.2 million (S$1.7 million).'
The second Super Sunday was held in April. This time, the company brought 175 Singaporeans in four buses and collected 20 sales worth RM6 million. A Super Sunday finale is planned for May 24.
Mr Ibrahim added that, 'going by the success of these events', UEML plans to organise more free tours covering more Nusajaya developments.
The Singapore market is of major importance to Johor developers. According to UEML, during East Ledang's phase one launch in February last year, which saw 139 units launched, it enjoyed a take-up rate of 75 per cent, with 65 per cent of the buyers being foreigners. Of these, 90 per cent were from Singapore.
Preparations are now under way for the launch of phase two.
Other developments in Nusajaya include Puteri Harbour, a waterfront and marina development that spans 278.4ha and offers a view of the Johor Strait. Additionally, Iskandar Investment is looking to build East Asia's first Legoland Park there in partnership with Merlin Entertainments.
The park's slated public opening in 2013 could be brought forward. Ms Arlida Ariff, chief executive of Iskandar Investment, yesterday told The Straits Times that, with the stimulus package, the government had told them to 'open earlier, so now it's April 2012'.
A key development in Nusajaya, Puteri Harbour spans 278.4 hectares with a view of the Strait of Johor.
SINGAPORE residents already make up a substantial chunk of property buyers in the Nusajaya urban development zone of south-west Johor, but now they are being ferried in for free to further boost their numbers.
-- PHOTOS COURTESY OF UEM LAND.Master developer UEM Land (UEML) is chartering buses to ferry interested individuals to its property sites in the area.
Said UEML managing director Wan Abdullah Wan Ibrahim: 'We actually charter buses to a collection point in Singapore and ferry these people to our property...so buyers will know what they are buying and the kind of infrastructure that we provide.'
In the past two months, UEML has held four events - two 'Super Sundays' for their hillside property Nusa Idaman and the other two for East Ledang, a residential enclave which will boast 31 themed garden spaces.
For the first Super Sunday event in March, UEML ran advertisements in Singapore on the free buses running between Jurong Point and Nusa Idaman.
Said UEML general manager for strategic marketing Zamry Ibrahim: 'We gave out cash vouchers as well for shopping. (The) response was overwhelming...about 220 Singaporeans came for the event and we collected 15 sales worth RM4.2 million (S$1.7 million).'
The second Super Sunday was held in April. This time, the company brought 175 Singaporeans in four buses and collected 20 sales worth RM6 million. A Super Sunday finale is planned for May 24.
Mr Ibrahim added that, 'going by the success of these events', UEML plans to organise more free tours covering more Nusajaya developments.
The Singapore market is of major importance to Johor developers. According to UEML, during East Ledang's phase one launch in February last year, which saw 139 units launched, it enjoyed a take-up rate of 75 per cent, with 65 per cent of the buyers being foreigners. Of these, 90 per cent were from Singapore.
Preparations are now under way for the launch of phase two.
Other developments in Nusajaya include Puteri Harbour, a waterfront and marina development that spans 278.4ha and offers a view of the Johor Strait. Additionally, Iskandar Investment is looking to build East Asia's first Legoland Park there in partnership with Merlin Entertainments.
The park's slated public opening in 2013 could be brought forward. Ms Arlida Ariff, chief executive of Iskandar Investment, yesterday told The Straits Times that, with the stimulus package, the government had told them to 'open earlier, so now it's April 2012'.
MND Will Ensure Property Sector Remains Stable
Source : The Business Times, May 21 2009
It will also help build capabilities of construction firms.
THE government will continue to monitor the property and construction markets and adopt more measures to keep them stable if needed, said National Development Minister Mah Bow Tan yesterday.
Marina Bay Station Square: Government has invested $5.7 billion in infrastructure in Marina Bay, and will continue to inject more than $1 billion
The Ministry of National Development (MND) will also introduce measures to build up the capabilities and productivity of construction firms, and make the industry more attractive to Singaporeans, he added.
'As we help Singaporeans tide over the current economic uncertainty, we will press on with our long-term plans to make Singapore an attractive and highly liveable city,' he highlighted in his ministry's addendum to the President's address in Parliament.
MND is overseeing several projects to transform Singapore into an exciting metropolis. For instance, the government has invested close to $5.7 billion in infrastructure in Marina Bay, and will continue to inject more than $1 billion in more works over the next 10 to 15 years.
Beyond Marina Bay, it will also invest in infrastructure in the new growth areas at Jurong Lake District, Kallang Riverside and Paya Lebar.
To ensure that Singapore's growth is sustainable, MND will push harder for the adoption of energy efficient technologies in buildings, and embark on a large-scale solar test-bed within HDB estates.
Recognising that public housing remains a key pillar of the country's social security system, Mr Mah said that the government will help HDB households affected by the downturn to manage immediate mortgage repayments and to work out longer-term solutions, such as switching to smaller flats.
MND will also increase the supply of rental, 2-room and 3-room flats. It will also step up the construction of studio apartments for the elderly looking to monetise their flats.
MND will kick off the Concept Plan 2011 exercise this year to draw up long-term plans for Singapore's growing economy and population.
It will also help build capabilities of construction firms.
THE government will continue to monitor the property and construction markets and adopt more measures to keep them stable if needed, said National Development Minister Mah Bow Tan yesterday.
Marina Bay Station Square: Government has invested $5.7 billion in infrastructure in Marina Bay, and will continue to inject more than $1 billionThe Ministry of National Development (MND) will also introduce measures to build up the capabilities and productivity of construction firms, and make the industry more attractive to Singaporeans, he added.
'As we help Singaporeans tide over the current economic uncertainty, we will press on with our long-term plans to make Singapore an attractive and highly liveable city,' he highlighted in his ministry's addendum to the President's address in Parliament.
MND is overseeing several projects to transform Singapore into an exciting metropolis. For instance, the government has invested close to $5.7 billion in infrastructure in Marina Bay, and will continue to inject more than $1 billion in more works over the next 10 to 15 years.
Beyond Marina Bay, it will also invest in infrastructure in the new growth areas at Jurong Lake District, Kallang Riverside and Paya Lebar.
To ensure that Singapore's growth is sustainable, MND will push harder for the adoption of energy efficient technologies in buildings, and embark on a large-scale solar test-bed within HDB estates.
Recognising that public housing remains a key pillar of the country's social security system, Mr Mah said that the government will help HDB households affected by the downturn to manage immediate mortgage repayments and to work out longer-term solutions, such as switching to smaller flats.
MND will also increase the supply of rental, 2-room and 3-room flats. It will also step up the construction of studio apartments for the elderly looking to monetise their flats.
MND will kick off the Concept Plan 2011 exercise this year to draw up long-term plans for Singapore's growing economy and population.
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