Source : The Business Times, November 4, 2008
(LONDON) The total volume of European property derivative trades fell 38 per cent quarter-on-quarter to £1.15 billion (S$2.7 billion) in three months to Sept 30 as the global financial maelstrom curbed growth in the infant market.
Data from index provider Investment Property Databank (IPD) showed yesterday that a total 166 trades were struck in the third quarter, the lowest number of quarterly trades since the corresponding period last year. Despite a slowdown in the number of deals, the total notional value of UK trades completed in 2008 so far is still some way ahead of the £5.6 billion of trades seen by the end of the third quarter 2007, indicating a resilient core of support for the most mature of Europe's property derivatives markets.
Some £1.03 billion of UK commercial property derivative trades were completed in the third quarter, bringing the notional value of deals struck to £6.1 billion over the year to date. 'Given the financial crisis besetting investment banks at present, it is encouraging that the level of derivative activity which depends on their participation has held up as well as it has,' said Ian Cullen at IPD.
The property derivatives market mostly offers over-the-counter trading in swaps based on benchmark total return property indexes for fixed periods, in exchange for interest payments.
Property swaps enable investors to increase or hedge exposure to real estate without having to buy or sell bricks and mortar in costly and time-consuming transactions.
Third quarter French property derivatives trading volumes were the lowest since trading began in the first quarter 2007, falling by 55 per cent compared with the second quarter 2008.
In Germany, trades fell by 28 per cent on the previous quarter and by half compared with the same period last year. -- Reuters
Tuesday, November 4, 2008
Bangkok Real Estate Development Set To Ease
Source : The Business Times, November 4, 2008
(BANGKOK) Property development in Bangkok is expected to drop 18 per cent this year as political turmoil and the global financial crisis hit the market, a leading property consultancy said yesterday.
Beneath the calm: An aerial view of the Chao Praya river that winds through the city of Bangkok. Thailand is suffering from both the global credit crunch and anti-government street protests which has caused overseas investors to pull cash from the Thai stock exchange
Thailand's Agency for Real Estate Affairs (Area) predicts that the capital will see 66,783 new housing units built this year, compared to 81,364 last year.
Earlier this year, Area expected a drop of only seven per cent.
Profits from the sales of new homes in Bangkok are forecast to fall six per cent to 174.7 billion baht (S$7.3 billion).
Thailand is suffering from both the worldwide credit crunch - expected to hurt its exports to the United States and Europe - and anti-government street protests which began in May, raising fears of another coup.
Between the two crises, the global financial meltdown did most of the damage, said Area researcher Sarayut Khanay.
'I think now we have more effect from the economic problems outside of Thailand - from Europe, from the US, from Japan,' he told AFP yesterday.
Domestic political unrest, which erupted into bloodshed last month when police and protesters clashed, killing two people and leaving nearly 500 injured, is familiar to Thais, he said.
No matter the political climate, Thais know they need places to live, Mr Sarayut said.
Buyer demand has stayed high, with Bangkok residents looking for up to 80,000 new homes a year.
The trouble is not finding Thais to buy the new homes, but finding investors with the financial capital to fund new construction.
'It's more a problem of the money, compared to the buyer,' said Mr Sarayut.
The political crisis has had economic effects, causing foreign tourists to avoid the kingdom, industry experts say, and overseas investors to pull their cash from the Thai stock exchange.
The Thai stock market is down about 50 per cent since May 23, the last day of trading before an anti-government group launched their campaign. -- AFP
(BANGKOK) Property development in Bangkok is expected to drop 18 per cent this year as political turmoil and the global financial crisis hit the market, a leading property consultancy said yesterday.
Beneath the calm: An aerial view of the Chao Praya river that winds through the city of Bangkok. Thailand is suffering from both the global credit crunch and anti-government street protests which has caused overseas investors to pull cash from the Thai stock exchangeThailand's Agency for Real Estate Affairs (Area) predicts that the capital will see 66,783 new housing units built this year, compared to 81,364 last year.
Earlier this year, Area expected a drop of only seven per cent.
Profits from the sales of new homes in Bangkok are forecast to fall six per cent to 174.7 billion baht (S$7.3 billion).
Thailand is suffering from both the worldwide credit crunch - expected to hurt its exports to the United States and Europe - and anti-government street protests which began in May, raising fears of another coup.
Between the two crises, the global financial meltdown did most of the damage, said Area researcher Sarayut Khanay.
'I think now we have more effect from the economic problems outside of Thailand - from Europe, from the US, from Japan,' he told AFP yesterday.
Domestic political unrest, which erupted into bloodshed last month when police and protesters clashed, killing two people and leaving nearly 500 injured, is familiar to Thais, he said.
No matter the political climate, Thais know they need places to live, Mr Sarayut said.
Buyer demand has stayed high, with Bangkok residents looking for up to 80,000 new homes a year.
The trouble is not finding Thais to buy the new homes, but finding investors with the financial capital to fund new construction.
'It's more a problem of the money, compared to the buyer,' said Mr Sarayut.
The political crisis has had economic effects, causing foreign tourists to avoid the kingdom, industry experts say, and overseas investors to pull their cash from the Thai stock exchange.
The Thai stock market is down about 50 per cent since May 23, the last day of trading before an anti-government group launched their campaign. -- AFP
Q3 House Prices Fall 1.8% Down Under
Source : The Business Times, November 4, 2008
Property prices may remain flat for next few quarters
(SYDNEY) Australian house prices fell in the third quarter, adding to signs that buyers are shunning the property market as the nation's economy slows and unemployment gains.
An index measuring the weighted average of prices for established houses in the nation's eight capital cities dropped 1.8 per cent from the June quarter, when it declined a revised 0.2 per cent, the Australian Bureau of Statistics said in Sydney yesterday.
The median estimate of 12 economists surveyed by Bloomberg News was for 0.5 per cent decrease.
The second quarter of falling house prices will give central bank Governor Glenn Steven's scope to add to last month's one percentage point reduction in the benchmark lending rate, the biggest cut since a recession in 1992.
Turmoil on financial markets and rising unemployment have prompted home buyers to postponed plans to buy property.
'Property market activity has softened significantly,' Alex Joiner, an economist at Australia & New Zealand Banking Group Ltd in Melbourne, said ahead of yesterday's report.
'We see prices remaining relatively flat in the next few quarters, before grinding higher.' House prices rose 2.8 per cent in the year through September, after climbing 8.6 per cent in the second quarter, yesterday's report showed. Economists forecast a 4 per cent annual increase.
Mr Stevens and his Reserve Bank of Australia board will reduce the overnight cash rate target by half a point to 5.5 per cent tomorrow, according to 13 of 14 economists surveyed by Bloomberg. -- Bloomberg
Property prices may remain flat for next few quarters
(SYDNEY) Australian house prices fell in the third quarter, adding to signs that buyers are shunning the property market as the nation's economy slows and unemployment gains.
An index measuring the weighted average of prices for established houses in the nation's eight capital cities dropped 1.8 per cent from the June quarter, when it declined a revised 0.2 per cent, the Australian Bureau of Statistics said in Sydney yesterday.
The median estimate of 12 economists surveyed by Bloomberg News was for 0.5 per cent decrease.
The second quarter of falling house prices will give central bank Governor Glenn Steven's scope to add to last month's one percentage point reduction in the benchmark lending rate, the biggest cut since a recession in 1992.
Turmoil on financial markets and rising unemployment have prompted home buyers to postponed plans to buy property.
'Property market activity has softened significantly,' Alex Joiner, an economist at Australia & New Zealand Banking Group Ltd in Melbourne, said ahead of yesterday's report.
'We see prices remaining relatively flat in the next few quarters, before grinding higher.' House prices rose 2.8 per cent in the year through September, after climbing 8.6 per cent in the second quarter, yesterday's report showed. Economists forecast a 4 per cent annual increase.
Mr Stevens and his Reserve Bank of Australia board will reduce the overnight cash rate target by half a point to 5.5 per cent tomorrow, according to 13 of 14 economists surveyed by Bloomberg. -- Bloomberg
Rental Rates For Mid-Range Retail Space Likely To Fall
Source : Channel NewsAsia, 03 November 2008
Mid-range retail spaces in Singapore are likely to see a fall in rental rates, due to a drop in tourist arrivals and slowing domestic spending.
Properties which are having rental rates renegotiated in the midst of the current economic downturn are likely to be the most vulnerable. Experts said landlords will have to rent out their spaces for less as retailers are hit by lower earnings.
Eugene Lim, associate director, ERA Asia Pacific, said: "For the whole of this year, we will probably see a 5 per cent increase for the retail sector in terms of rent. Next year, quite possibly, we will see less increases and the market will probably be flat for coming quarters."
But rents for high-end properties in prime shopping belts like Orchard Road, as well as low-end suburban mall space, are expected to be more resilient.
High-end tenants, such as luxury goods boutiques, would resist giving up top locations and are likely to be willing to pay more. Tenants in lower-end properties traditionally sell basic necessities which are still in demand, despite the economic slowdown.
Suburban malls also face the least pressure from new retail space supply next year. Only 20 per cent of the new retail space is in suburban locations. The remaining 80 per cent is located in the city centre. - CNA/so
Mid-range retail spaces in Singapore are likely to see a fall in rental rates, due to a drop in tourist arrivals and slowing domestic spending.
Properties which are having rental rates renegotiated in the midst of the current economic downturn are likely to be the most vulnerable. Experts said landlords will have to rent out their spaces for less as retailers are hit by lower earnings. Eugene Lim, associate director, ERA Asia Pacific, said: "For the whole of this year, we will probably see a 5 per cent increase for the retail sector in terms of rent. Next year, quite possibly, we will see less increases and the market will probably be flat for coming quarters."
But rents for high-end properties in prime shopping belts like Orchard Road, as well as low-end suburban mall space, are expected to be more resilient.
High-end tenants, such as luxury goods boutiques, would resist giving up top locations and are likely to be willing to pay more. Tenants in lower-end properties traditionally sell basic necessities which are still in demand, despite the economic slowdown.
Suburban malls also face the least pressure from new retail space supply next year. Only 20 per cent of the new retail space is in suburban locations. The remaining 80 per cent is located in the city centre. - CNA/so
Property Firms Reach Out With Online Portals
Source : The Business Times, November 4, 2008
Knight Frank launches VirtualHomes; ERA ties up with rednano.sg
Property used to be only a bricks and mortar game, but real estate companies are now going online in a big way to boost their profiles and sales.
Knight Frank on Oct 13 launched VirtualHomes, touted to be Singapore's most comprehensive condominium search.
With more than 2,500 developments online, every condominium and apartment in Singapore is featured. The search engine provides detailed information on a property's location and a summary of important amenities such as schools, transportation and shopping malls. Users are also able to 'walk through' the developments and their surrounding neighbourhood via a 720 degree panoramic view. All these are value-added enhancements beyond the basic information such as tenure, number of units, available bedroom types and typical floor plans which contribute to the 'identity' and 'aura' of each development.
Prospective homeowners are also able to check the prices at which recent units in each development were transacted.
'We have consolidated all the essentials that matter to home buyers and investors into each development featured,' said Tan Tee Khoon, director of Knight Frank subsidiary KF property Network. 'Harnessing the power of the Internet, people can now find out all the property information they need before engaging a realty adviser specialising in a specific development or district.'
Knight Frank expects the search engine to be a big hit with everyone in the industry - property investors, developers, sellers, landlords and anyone interested in private residential projects in any district. So far, about 5,000 people have visited the site - www.virtualhomes.sg - Knight Frank said. The initiative will improve Knight Frank's reach to prospective clients so that they can make informed decisions about property investments, said Knight Frank managing director Tan Tiong Cheng.
The property firm also has a tie-up with ST701 in the latter's new condominium directory, launched on the same day.
Another property firm, ERA Singapore, also announced this week that it will work together with local search engine rednano.sg to give homebuyers more relevant information to help them choose the right agent and the right property for their needs.
The tie-up will allow ERA agents to add information about themselves in rednano's 'People' list, including their achievements, years of working experience and their personal photographs.
The ERA agents can also turn to rednano's maps to familiarise their clients with the key details of the area surrounding the homes or offices being offered for sale or rent. Information such as nearby ERP gantries and prices, ATMs and even 4-D outlets in addition to the nearest schools, clinics and shopping centres will be available.
'Anyone who is keen to know more about news or information on properties in Singapore can easily search online at rednano.sg to learn more about ERA, our wide range of housing services and even make contact with any of our friendly and highly experienced associates to address their housing needs,' said ERA senior vice-president Marcus Chu.
Knight Frank launches VirtualHomes; ERA ties up with rednano.sg
Property used to be only a bricks and mortar game, but real estate companies are now going online in a big way to boost their profiles and sales.
Knight Frank on Oct 13 launched VirtualHomes, touted to be Singapore's most comprehensive condominium search.
With more than 2,500 developments online, every condominium and apartment in Singapore is featured. The search engine provides detailed information on a property's location and a summary of important amenities such as schools, transportation and shopping malls. Users are also able to 'walk through' the developments and their surrounding neighbourhood via a 720 degree panoramic view. All these are value-added enhancements beyond the basic information such as tenure, number of units, available bedroom types and typical floor plans which contribute to the 'identity' and 'aura' of each development.
Prospective homeowners are also able to check the prices at which recent units in each development were transacted.
'We have consolidated all the essentials that matter to home buyers and investors into each development featured,' said Tan Tee Khoon, director of Knight Frank subsidiary KF property Network. 'Harnessing the power of the Internet, people can now find out all the property information they need before engaging a realty adviser specialising in a specific development or district.'
Knight Frank expects the search engine to be a big hit with everyone in the industry - property investors, developers, sellers, landlords and anyone interested in private residential projects in any district. So far, about 5,000 people have visited the site - www.virtualhomes.sg - Knight Frank said. The initiative will improve Knight Frank's reach to prospective clients so that they can make informed decisions about property investments, said Knight Frank managing director Tan Tiong Cheng.
The property firm also has a tie-up with ST701 in the latter's new condominium directory, launched on the same day.
Another property firm, ERA Singapore, also announced this week that it will work together with local search engine rednano.sg to give homebuyers more relevant information to help them choose the right agent and the right property for their needs.
The tie-up will allow ERA agents to add information about themselves in rednano's 'People' list, including their achievements, years of working experience and their personal photographs.
The ERA agents can also turn to rednano's maps to familiarise their clients with the key details of the area surrounding the homes or offices being offered for sale or rent. Information such as nearby ERP gantries and prices, ATMs and even 4-D outlets in addition to the nearest schools, clinics and shopping centres will be available.
'Anyone who is keen to know more about news or information on properties in Singapore can easily search online at rednano.sg to learn more about ERA, our wide range of housing services and even make contact with any of our friendly and highly experienced associates to address their housing needs,' said ERA senior vice-president Marcus Chu.
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