Source: Bloomberg (Jennifer Ryan)
July 20 (Bloomberg) -- British home sellers raised asking prices this month to meet increased demand from buyers, Rightmove Plc said.
The average cost of a home rose 0.6 percent to 227,864 pounds ($372,000) after falling 0.4 percent in June, the operator of the U.K.’s biggest residential property Web site said today in a statement. Prices in London had the first annual gain of the year so far.
The housing market is showing signs of recovery from the worst economic contraction in a generation after officials rescued banks and started printing money. Ernst & Young LLC’s Item Club today raised its forecast for British gross domestic product in 2010 to show expansion.
“With growing confidence that we’ve passed the bottom, buyers are more active, although they may discover that many of the best buys have gone,” Miles Shipside, commercial director of Rightmove, said in the statement.
Seven of 10 regions tracked by Rightmove rose this month, led by East Anglia, where asking prices increased 6.1 percent. Across England and Wales, values declined 3.1 percent from a year ago.
The average number of properties available for sale at each real-estate agent fell to 70 from 71 in June. At the same time the number of people looking at property listings on the Web site is “much higher than we would expect” for this time of year, Rightmove said.
London Prices
In the capital prices rose 1.4 percent on the month and 0.6 percent from a year earlier. Westminster led gains from June, with a 5.2 percent increase, followed by Croydon and Camden.
U.K. mortgage approvals rose to 43,414 in May, up from 27,000 in November, the least since Bank of England data began a decade ago. The reading is still about a third less than at the start of 2008.
The Bank of England has cut the benchmark interest rate to a record low of 0.5 percent and is buying 125 billion pounds of bonds with newly created money to ease lending strains. Prime Minister Gordon Brown has spent billions of pounds rescuing banks including Royal Bank of Scotland Group Plc.
“With only seven volume lenders remaining in the lending game, including three government-backed institutions that are prioritizing their balance sheets over new lending, we are set to bump along the bottom for some time yet,” Shipside said.
The economy will grow 0.5 percent next year, up from a previous forecast for a 0.1 percent contraction, the Item Club, which uses the same forecasting model as the U.K. Treasury, said today. It predicts gross domestic product will drop 4.4 percent this year, more than an earlier estimate for 3.5 percent.
Repossessions may total 17,494 in the third quarter, up from 17,049 in the three months through June as higher unemployment leaves more Britons unable to afford their mortgages, according to a separate report today by Property Portfolio Rescue, a London-based company that buys homes from distressed sellers.
Showing posts with label Property. Show all posts
Showing posts with label Property. Show all posts
Tuesday, July 21, 2009
Monday, July 20, 2009
Property transactions expected to increase
Source: The Star Online (YEOW POOI LING)
This is due to the relaxation of the FIC rules, says foreign brokerage
PETALING JAYA: Bank earnings and loans growth are likely to improve towards the end of the year, bolstered by the recent deregulation of the Foreign Investment Committee (FIC) guidelines on properties as well as easing conditions for new listings and fund-raising activities.
According to a foreign brokerage, property transactions, both residential and commercial, are expected to increase following the relaxation of the FIC rules, which should spur demand for property financing.
Higher property financing would lead to a turnaround in loans growth by year’s end or early next year, it said, noting that property financing comprised 36.4% of total loans in the banking system.
“The policy changes will create more revenue streams for Malaysia’s financial sector and reduce dependency on pure interest income,” the foreign research house said, adding that loans growth in May was underpinned by the relatively stable household loans segment, which grew 8.4% year-on-year.
In addition, the liberalisation would also encourage more mergers and acquisitions (M&As), as well as more capital and equity market activities, which would benefit investment banks, it said. With greater foreign ownership allowed in stockbrokers, product innovation – such as the roll-out of more varied derivative products – is likely to improve.
The foreign research house added that Malaysia’s capital market was expected to gain better access to capital and investments with the removal of the 30% bumiputra equity requirement, making it more attractive for foreign listings while supporting existing listed companies seeking to raise funds.
A local bank-backed brokerage said residential mortgages showed “no signs of weakening” as they sustained 10% growth from December 2008 to May 2009 despite the gloomy economic landscape.
This was due to progressive release of housing loans approved in the past one to two years, high savings rate of Malaysians, sustainable property transactions thanks to limited speculation, low interest rates and attractive schemes by developers, it said.
Moreover, there could be more corporate deals in the pipeline, including new listings and M&A transactions on the back of improved average daily trading value on Bursa Malaysia, it said.
This would augur well for investment banking income, including brokerage and corporate advisory fees, the research house added.
HwangDBS Vickers Research, meanwhile, said the liberalisation was “very bold measures” to improve the competitiveness of Malaysia’s properties internationally.
“The biggest winners will be developers with large exposure to the more ‘open’ districts like the Federal Territory and Penang, where the authorities would likely be supportive,” it said.
Wednesday, July 15, 2009
KL, Penang property markets looking good
Sources: The Malaysia Insider (15th July 2009)
KUALA LUMPUR, July 9 — Always a favourite, landed real estate is receiving more interest in the current property lull. According to property agents, there has been a slight pick-up in the past two months, mainly in primary sales and landed properties located in popular suburbs.
Zerin Properties' chief executive Previn Singhe described April and May as “surprising months with very strong interest in landed properties”, centred mainly in the Klang Valley as prospective purchasers act on the premise that prices are unlikely to slip because of the limited supply.
In some places, demand continues to outstrip supply, he said, citing Bangsar, Bukit Damansara, Damansara Heights, Taman Tun Dr Ismail, Seputeh, Taman Desa and Jalan Ipoh where prices — which had held steady — have started to inch up as investors turn to property as a hedge against inflation.
“If you want to buy for owner occupation, any time is a good time. If it's for investment, you need to be looking now,” advised CH Williams Talhar & Wong managing director Goh Tian Sui.
Singhe lists those on the property hunt: the first timers attracted by low interest rates; investors in the 30-55 age group who are acquiring for their children; professional investors looking at Kuala Lumpur landed real estate for capital appreciation or condominiums for rental yields; and non-resident Malaysians.
There are also foreigners who have started to look at condos in the Kuala Lumpur City Centre and Mont Kiara areas since the price of some units have dropped by 20 per cent. Location-wise, Penang is another hot-spot, popular with Penangites and other northerners, as well as KL-ites looking to retire there.
“There are more opportunities in the secondary market because the primary market development costs have gone up.”
Across the South China Sea, Kota Kinabalu real estate has received a boost from the oil and gas boom, as well as tourism which has led to numerous Koreans and Europeans succumbing to its charms, Singhe said.
In the south of the peninsula, Johor's Iskandar Malaysia remains a major point of interest. Central to Iskandar is the Nusajaya area with its strategic location across the Straits of Johor. Nusajaya's jewel is the 687-acre Puteri Harbour with its planned integrated waterfront and marina development.
The precinct is to be gradually developed and because of its geography, has attracted the attention of a number of foreign builders which are keen to be involved. One of them is Limitless Holdings, a unit of Dubai World, which plans to jointly develop luxury residences with Nusajaya's master developer, UEM Land.
Another planned joint venture between UEM Land and the Middle East's Damac Properties was scrapped recently after Damac — which was to buy 43.5 acres in the enclave for nearly RM400 million — did not fulfil conditions for the sale to proceed.
Still, most believe Puteri Harbour's location, quality of build, management, and security will prove a big attraction to investors — especially foreign ones — just as they have in places slightly further afield such as Leisure Farm, Horizon Hills and Ledang East in Nusajaya.
Singhe is of the view that the better quality products in Iskandar have allowed Johoreans to “upgrade”. Indeed, many property consultants believe branded developments or designer buildings are what discerning investors increasingly desire and could make a difference in a project's “sell-ability”.
KGV-Lambert (M) executive director Samuel Tan agrees that the higher-end developments in Iskandar have drawn the most interest in Johor. The rest of the market has been softer.
“People think that Nusajaya is Iskandar Malaysia,” he observed wryly, pointing out that it is only a fraction of the special economic zone which is three times the size of Singapore. He highlighted new developments in brownfield areas as well as mature ones in the Tebrau Corridor, Skudai and Pasir Gudang which have been under-promoted but which might be worth a second look. “There are more opportunities in the secondary market because the primary market development costs have gone up.”
For those considering the lower- to mid-range of the market, bad debts have created a “sub-market” of auctioned properties in Johor, he revealed, with auctions held weekly. Each auction offers 20-50 properties and they go for about 30 per cent less than their market value.
Despite the global financial crisis, Iskandar investors remain committed, the biggest to date being Middle Eastern firms which plan to develop the area called Medini, located near the Second Link.
Still, property developers caution that the pace of construction could be slowed. On the bright side, the state government has already moved into the new administrative buildings in Kota Iskandar, and overall infrastructure works are continuing.
Singhe believes the 2003-04 pattern of funds sniffing for deals which resulted in a property boom in 2006-07 is being repeated now based on the number of funds that are making inquiries. Accordingly, he expects a property upswing to materialise in 2011-12.
The Quill Group of Companies, which designs and constructs purpose-built offices, confirms growing interest in Malaysia. Its property director, Ng Chee Kheong, said that multinationals were showing keen interest in the area of shared services, particularly in the Klang Valley and Penang.
Of late, Malaysia has started to speed up its liberalisation of many sectors of the economy to attract more investments. Should it succeed, the expatriate market ought to increase which would in turn stimulate demand for rented properties and help arrest some of the decline in yields.
Because of the downturn, a number of developments had been put on hold, including one by Singapore's Kwek Leng Beng who was to have launched a 42-storey luxury condominium last year in the Kuala Lumpur golden triangle.
A prospective buyer expressed disappointment at the delay as he had been looking forward to purchasing a unit in the Carlos Ott-designed building which is to be constructed next to the tycoon's Millennium Hotel.
Kuala Lumpur high-end condo prices have dipped to an average of RM1,000 per sq ft although the more prestigious ones still command a premium. Because of the weak ringgit, prices remain very affordable, especially for foreigners.
Ferrari team's ex-boss Jean Todt, who is engaged to well-known actress Michelle Yeoh, recently revealed he had acquired a unit in OneKL, which sits opposite the iconic Petronas Twin Towers. — Business Times Singapore
KUALA LUMPUR, July 9 — Always a favourite, landed real estate is receiving more interest in the current property lull. According to property agents, there has been a slight pick-up in the past two months, mainly in primary sales and landed properties located in popular suburbs.
Zerin Properties' chief executive Previn Singhe described April and May as “surprising months with very strong interest in landed properties”, centred mainly in the Klang Valley as prospective purchasers act on the premise that prices are unlikely to slip because of the limited supply.
In some places, demand continues to outstrip supply, he said, citing Bangsar, Bukit Damansara, Damansara Heights, Taman Tun Dr Ismail, Seputeh, Taman Desa and Jalan Ipoh where prices — which had held steady — have started to inch up as investors turn to property as a hedge against inflation.
“If you want to buy for owner occupation, any time is a good time. If it's for investment, you need to be looking now,” advised CH Williams Talhar & Wong managing director Goh Tian Sui.
Singhe lists those on the property hunt: the first timers attracted by low interest rates; investors in the 30-55 age group who are acquiring for their children; professional investors looking at Kuala Lumpur landed real estate for capital appreciation or condominiums for rental yields; and non-resident Malaysians.
There are also foreigners who have started to look at condos in the Kuala Lumpur City Centre and Mont Kiara areas since the price of some units have dropped by 20 per cent. Location-wise, Penang is another hot-spot, popular with Penangites and other northerners, as well as KL-ites looking to retire there.
“There are more opportunities in the secondary market because the primary market development costs have gone up.”
Across the South China Sea, Kota Kinabalu real estate has received a boost from the oil and gas boom, as well as tourism which has led to numerous Koreans and Europeans succumbing to its charms, Singhe said.
In the south of the peninsula, Johor's Iskandar Malaysia remains a major point of interest. Central to Iskandar is the Nusajaya area with its strategic location across the Straits of Johor. Nusajaya's jewel is the 687-acre Puteri Harbour with its planned integrated waterfront and marina development.
The precinct is to be gradually developed and because of its geography, has attracted the attention of a number of foreign builders which are keen to be involved. One of them is Limitless Holdings, a unit of Dubai World, which plans to jointly develop luxury residences with Nusajaya's master developer, UEM Land.
Another planned joint venture between UEM Land and the Middle East's Damac Properties was scrapped recently after Damac — which was to buy 43.5 acres in the enclave for nearly RM400 million — did not fulfil conditions for the sale to proceed.
Still, most believe Puteri Harbour's location, quality of build, management, and security will prove a big attraction to investors — especially foreign ones — just as they have in places slightly further afield such as Leisure Farm, Horizon Hills and Ledang East in Nusajaya.
Singhe is of the view that the better quality products in Iskandar have allowed Johoreans to “upgrade”. Indeed, many property consultants believe branded developments or designer buildings are what discerning investors increasingly desire and could make a difference in a project's “sell-ability”.
KGV-Lambert (M) executive director Samuel Tan agrees that the higher-end developments in Iskandar have drawn the most interest in Johor. The rest of the market has been softer.
“People think that Nusajaya is Iskandar Malaysia,” he observed wryly, pointing out that it is only a fraction of the special economic zone which is three times the size of Singapore. He highlighted new developments in brownfield areas as well as mature ones in the Tebrau Corridor, Skudai and Pasir Gudang which have been under-promoted but which might be worth a second look. “There are more opportunities in the secondary market because the primary market development costs have gone up.”
For those considering the lower- to mid-range of the market, bad debts have created a “sub-market” of auctioned properties in Johor, he revealed, with auctions held weekly. Each auction offers 20-50 properties and they go for about 30 per cent less than their market value.
Despite the global financial crisis, Iskandar investors remain committed, the biggest to date being Middle Eastern firms which plan to develop the area called Medini, located near the Second Link.
Still, property developers caution that the pace of construction could be slowed. On the bright side, the state government has already moved into the new administrative buildings in Kota Iskandar, and overall infrastructure works are continuing.
Singhe believes the 2003-04 pattern of funds sniffing for deals which resulted in a property boom in 2006-07 is being repeated now based on the number of funds that are making inquiries. Accordingly, he expects a property upswing to materialise in 2011-12.
The Quill Group of Companies, which designs and constructs purpose-built offices, confirms growing interest in Malaysia. Its property director, Ng Chee Kheong, said that multinationals were showing keen interest in the area of shared services, particularly in the Klang Valley and Penang.
Of late, Malaysia has started to speed up its liberalisation of many sectors of the economy to attract more investments. Should it succeed, the expatriate market ought to increase which would in turn stimulate demand for rented properties and help arrest some of the decline in yields.
Because of the downturn, a number of developments had been put on hold, including one by Singapore's Kwek Leng Beng who was to have launched a 42-storey luxury condominium last year in the Kuala Lumpur golden triangle.
A prospective buyer expressed disappointment at the delay as he had been looking forward to purchasing a unit in the Carlos Ott-designed building which is to be constructed next to the tycoon's Millennium Hotel.
Kuala Lumpur high-end condo prices have dipped to an average of RM1,000 per sq ft although the more prestigious ones still command a premium. Because of the weak ringgit, prices remain very affordable, especially for foreigners.
Ferrari team's ex-boss Jean Todt, who is engaged to well-known actress Michelle Yeoh, recently revealed he had acquired a unit in OneKL, which sits opposite the iconic Petronas Twin Towers. — Business Times Singapore
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