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29-08-08, 10:17
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/28/bcnsav128.xml
Asia Pacific property market next to be hit, warns Savills
By Emma Thelwell
Last Updated: 9:45am BST 28/08/2008
Property investment and estate agency Savills has warned that the credit crunch is beginning to hit the Asia-Pacific real estate markets.
Australia and Japan have already seen falls in the number of sales, with Hong Kong and Singapore suffering from "some slowing", the group said.
The once-booming property market in China is now "finally moderating", Savills said, as it revealed that overall underlying profits - stripping out a one-off disposal gain of £17m - slumped 41pc in the six months to the end of June.
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The company said that the developed Asia Pacific countries have export-led economies which are suffering amid weakening global demand.
Savills was unable to give a clear outlook for the stumbling property markets of the UK and the United States. The company said: "It continues to depend on how quickly confidence returns to financial markets, which currently show no sign of improvement."
Indicating gloomy prospects for the UK's ailing property market, Savills said transaction volumes in London alone are down 45pc year-on-year, with prices falling around 7pc in central London for the first half of the year.
Prime country property, which has held its value well until recent months, is now following London's slide, the group said.
The lower end of the property market has been particularly affected by the tightening mortgage market, Savills added.
Peter Smith, chairman of Savills, said: "2008 continues to be a challenging year for the real estate industry worldwide. We are taking action to reduce costs across the group, but are also continuing to invest selectively."
Savills hopes to cut cost by around £20m over the year, with cut backs in jobs, marketing, travel and property costs. It said its sales and financial services business would bear the brunt of the cost-cutting, as it has been "most affected by the downturn".
The group reported a 1pc rise in pre-tax profits to £33.4m for the six months, as revenues fell from £284.2m last year, to £278.1m.
Asia Pacific property market next to be hit, warns Savills
By Emma Thelwell
Last Updated: 9:45am BST 28/08/2008
Property investment and estate agency Savills has warned that the credit crunch is beginning to hit the Asia-Pacific real estate markets.
Australia and Japan have already seen falls in the number of sales, with Hong Kong and Singapore suffering from "some slowing", the group said.
The once-booming property market in China is now "finally moderating", Savills said, as it revealed that overall underlying profits - stripping out a one-off disposal gain of £17m - slumped 41pc in the six months to the end of June.
advertisement
The company said that the developed Asia Pacific countries have export-led economies which are suffering amid weakening global demand.
Savills was unable to give a clear outlook for the stumbling property markets of the UK and the United States. The company said: "It continues to depend on how quickly confidence returns to financial markets, which currently show no sign of improvement."
Indicating gloomy prospects for the UK's ailing property market, Savills said transaction volumes in London alone are down 45pc year-on-year, with prices falling around 7pc in central London for the first half of the year.
Prime country property, which has held its value well until recent months, is now following London's slide, the group said.
The lower end of the property market has been particularly affected by the tightening mortgage market, Savills added.
Peter Smith, chairman of Savills, said: "2008 continues to be a challenging year for the real estate industry worldwide. We are taking action to reduce costs across the group, but are also continuing to invest selectively."
Savills hopes to cut cost by around £20m over the year, with cut backs in jobs, marketing, travel and property costs. It said its sales and financial services business would bear the brunt of the cost-cutting, as it has been "most affected by the downturn".
The group reported a 1pc rise in pre-tax profits to £33.4m for the six months, as revenues fell from £284.2m last year, to £278.1m.