mr funny
23-06-11, 11:46
http://www.businesstimes.com.sg/sub/companies/story/0,4574,444255-1308772740,00.html?
Published June 22, 2011
Office and retail sector seen as better bet
WITH rapid economic growth, office and retail development is the next sector to watch, said Justin Chiu, executive director of Cheung Kong Holdings Limited, Hong Kong.
Speaking during a panel discussion at the Real Estate Investment World Asia conference on repositioning for the next wave of development and acquisition opportunities, Mr Chiu also pointed out that the office and retail market is less likely to be subject to political intervention, compared to the housing market which governments are trying to stabilise.
High liquidity levels coupled with low interest rates have increased property prices, prompting governments to introduce cooling measures before prices rise beyond sustainable levels.
The changing regulatory environment limits the property choices of investors and makes it more expensive. In addition, higher interest rates and stamp duties discourage investors by wiping out their gains.
In the retail and office space sector, however, the outlook is a little different. 'In Asia, where the economy is improving, demand for commercial space will also increase,' said Chong Siak Ching, president and chief executive officer of Ascendas Pte Ltd.
As companies expand in Singapore's business and services sector, local Grade A office supply should keep pace with the anticipated take up of offices, reported Savills.
Pointing out the omission of India in Savills' Asia Pacific Real Estate Investment Country Guides for the second half of 2011, Ms Chong highlighted the potential of India's young population, and added that Ascendas has made more money in India than in China.
According to Savills, China is a vast property market, accounting for 43 per cent of all global property transactions in the first quarter of this year. Companies are also looking to take up more space for expansion purposes in Beijing, which will induce a strong demand in coming years.
However, group chief executive officer of MGPA, Simon Treacy, warns of the dying down of the boom in China and India.
Mr Treacy also said that liquidity will tighten with the market becoming more like Europe, where it is less opportunistic and more domestic.
Published June 22, 2011
Office and retail sector seen as better bet
WITH rapid economic growth, office and retail development is the next sector to watch, said Justin Chiu, executive director of Cheung Kong Holdings Limited, Hong Kong.
Speaking during a panel discussion at the Real Estate Investment World Asia conference on repositioning for the next wave of development and acquisition opportunities, Mr Chiu also pointed out that the office and retail market is less likely to be subject to political intervention, compared to the housing market which governments are trying to stabilise.
High liquidity levels coupled with low interest rates have increased property prices, prompting governments to introduce cooling measures before prices rise beyond sustainable levels.
The changing regulatory environment limits the property choices of investors and makes it more expensive. In addition, higher interest rates and stamp duties discourage investors by wiping out their gains.
In the retail and office space sector, however, the outlook is a little different. 'In Asia, where the economy is improving, demand for commercial space will also increase,' said Chong Siak Ching, president and chief executive officer of Ascendas Pte Ltd.
As companies expand in Singapore's business and services sector, local Grade A office supply should keep pace with the anticipated take up of offices, reported Savills.
Pointing out the omission of India in Savills' Asia Pacific Real Estate Investment Country Guides for the second half of 2011, Ms Chong highlighted the potential of India's young population, and added that Ascendas has made more money in India than in China.
According to Savills, China is a vast property market, accounting for 43 per cent of all global property transactions in the first quarter of this year. Companies are also looking to take up more space for expansion purposes in Beijing, which will induce a strong demand in coming years.
However, group chief executive officer of MGPA, Simon Treacy, warns of the dying down of the boom in China and India.
Mr Treacy also said that liquidity will tighten with the market becoming more like Europe, where it is less opportunistic and more domestic.