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by Overseas Property Mall on Wednesday, November 30th, 2011 in Billionaire Homes, Mumbai Property
Unbelievable.That is the only word fit to describe the fact that the world’s tallest, most luxurious, lavish and downright most expensive single-family home has been left lying empty for what is now more than a year since its completion. People are understandably angry at the waste. But that is not the only unbelievable thing about this mammoth building built by Indian billionaire Mukesh Ambani.
by Overseas Property Mall on Wednesday, November 23rd, 2011 in China Property
The Chinese authorities have succeeded in making good on their promise to lower property prices, but this bid to make housing affordable for the greater half of the Chinese population mightprove particularly costly for the Chinese economy as a whole. The residential sector is a major contributor of short-term economic growth in China, and accounted for an estimated 6.1% of its total GDP in 2010. Falling prices have already dragged down investment in the country’s real-estate market, and are expected make a similar dent in its demand for steel. Given the already dismal global economic outlook, a sluggish Chinese economy could then setoff more alarms than fireworks.
by Overseas Property Mall on Monday, November 14th, 2011 in Sri Lankan Property
The Sri Lankan government is scrapping the 100% tax levied on foreigners buying land, in favour of a new special land tax to be unveiled in the 2012 budget.
The new tax will remove restrictions on foreigners buying and developing land anywhere in the country, and will also close loopholes which have allowed many foreigners to buy land in Sri Lanka tax free. It is also thought that removing the tax will increase tourism and property sales to foreigners. The overall aim of the decision is to increase the revenues coming into government coffers from the sale of land to foreigners, sources from the Finance Ministry told reporters.
by Overseas Property Mall on Monday, March 14th, 2011 in China Property, Shanghai Property
Back on board the China property market rollercoaster as we ride into 2011. Before the last stop we watch a sub-index of property stocks on the Shanghai Composite Index slump 28% at the end of last year on the promise of new property taxes to curb growth. Now as it seems unlikely the taxes will ever come to bear, despite revelations that prices grew much faster last year than previously thought, we can watch the same index climbing once again having growth 8.4% last week.
by Overseas Property Mall on Friday, December 17th, 2010 in China Property, Shanghai Property
The record 73.1 million people attending the month-long World Expo in China during October pushed up rents and hotel rates in the Shanghai neighbourhood, which are now falling sharply, by up to 50% according to reports.
During the event two bedroom apartments in the area surrounding the Expo Park venue on the banks of the Huangpu river were fetching as much as 6000 – 10000 Yuan per month (with those in a 1.2 mile radius attracting the highest rents), but now rents have fallen 50% in the area according to Chen Yi, manager of the Expo branch of the Centaline Property Agency Ltd.
Hotel rates in the area fell by 47% from October to November, according to Qunar, China’s largest travel website tracking the city’s 2,000 hotels.
by Overseas Property Mall on Friday, December 3rd, 2010 in Kuala Lumpur Property, Malaysian Property
First time buyers in Malaysia have been largely priced out of buying landed properties in Kuala Lumpur after massive price escalation. Stories like that of Joshua Nonis, who couldn’t find a quality landed property within his budget of 200,000RM, are becoming all too common.
by Overseas Property Mall on Monday, October 11th, 2010 in Cambodia Property, Property & Real Estate Press Releases
11 October 2010, Bangkok – Cambodia’s first luxury private island resort has released its last remaining over-water villas to potential buyers looking to secure a rare piece of paradise.
Song Saa Private Island will be the first resort to be built in Cambodia’s pristine Koh Rong Archipelago, and sets a new standard for responsible high-end accommodation in this emerging tourism destination.
Developers Rory and Melita Hunter are now offering the final six villas to like-minded investors following the success of their first phase of villa sales which was launched late last year in Phuket through sole agent, CB Richard Ellis.
“Our private island is discreet and we only have a very small number of villas on offer. There is nowhere else a buyer could get this standard of investment at such a low price,” said Mr. Rory Hunter, CEO of Brocon, the Australian-owned company behind the development.
The exclusive nature of Song Saa Private Island and the increasing awareness of Cambodia as a tourism market means investors can expect substantial capital growth.
“The launch of Song Saa has put Cambodia on the global map and has proven there is a market of international investors keen to invest in quality projects in an emerging location which offers a significant upside in capital appreciation. Once regular airlift begins at the recently upgraded Sihanoukville International Airport, one can expect exponential growth in Cambodia’s coastal tourism,” said Mr. David Simister, Chairman of CB Richard Ellis Indochina.
Brocon guarantees investors a yield of 8% for 5 years – a superior rate in the region.
When the resort opens in late 2011, it will feature 25 rainforest, beach and over-water villas, all with private pools.
At its heart will be an over-water world-class restaurant and lounge, spectacularly positioned just off the island’s shoreline and surrounded by ocean. Guests will stroll out a short boardwalk to this breath-taking vantage point where, they can take in dramatic sunsets, seascapes and starry nights.
The resort will span the two islands of Koh Ouen and Koh Bong, connected by a footbridge over a marine reserve established to safeguard the islands’ reefs and marine life including dugongs, seahorses and exotic species of tropical fish.
The two islands are known locally as Song Saa, which is Khmer for the sweethearts, and the resort will be as romantic and intimate as the name implies.
“Think Thailand 30 years ago, before Koh Samui or Phuket became the international hubs they are today. We have the pristine rainforests and white sand beaches but without the over-development or crowds,” Rory said.
“We have tried to create something unique, something that reflects our love for Cambodia and for the environment. Central to our vision is respect for the environment and the people, and we believe private operators such as ourselves have an important role to play in the preservation of this rare corner of the world.”
The Hunters have established a marine reserve that covers one million square meters and extends 200 meters from the outer edge of the reefs around both islands. They are working closely with the regional Environment Committee, a forum of local people with the knowledge and desire to protect their own livelihoods through marine conservation.
“While protection of the marine environment is central to our vision, we also realise that a healthy environment depends on healthy communities, so we have made a commitment to donate a portion of all revenue to the local community, to donate resources such as schoolbooks and help fund local health initiatives.”
With construction of the resort well underway, the Hunters have already assembled a highly experienced team to oversee the management of the resort.
The resort’s general manager, Jean-Paul Riby, is a specialist in small, remote luxury resorts, with more than 15 years of experience in Asia. Most recently he was the general manager of Como Resort’s Bhutan property Uma Paro – a 33-room ultra luxury resort high in the Himalayan mountains. Prior to that he was in charge of Vietnam’s Six Senses Hideaway Ninh Van Bay, the country’s most luxurious resort.
Song Saa Private Island’s project manager, Philippe Riant, has nearly two decades of experience in every phase of a resort’s lifecycle, from conception and design to construction and management.
Like Jean-Paul, Philippe is a specialist in small ultra-luxury island resort development and operations. Most recently, he was Director of Technical Services at Per Aquum Resorts, overseeing their iconic private island developments in the Maldives and Seychelles. He also spent 17 years with the prestigious Starwood group.
“It is important to us that guests receive the exclusive luxury island experience they are promised, and so we have sought a highly experienced management team to ensure that they do,” said Rory.
The sole agent representing the sale of the villas is CB Richard Ellis – rated by Euromoney magazine as the top global advisor in their 2010 real estate survey.
by Overseas Property Mall on Friday, October 8th, 2010 in Japan Property
Reports have pointed out that property in Japan is currently a very popular with global investors, with 2.2 billion US Dollars already invested this year. Residential property in Tokyo is being noted as among the most popular, alongside hotels and offices in Tokyo.
“Hotels, Tokyo offices, Tokyo residential, I would say, will be the three specific sectors and opportunities that are being most sought after by international investors,” said Alistair Meadows, Asia Pacific director for International Capital Group at global property services firm Jones Lang LaSalle.
The list of buyers that have already declared interest is like a who’s who of global property investment’s biggest players, featuring: Blackstone Group and Fortress, Germany’s Deutsche Bank, US-based Jones Lang LaSalle’s funds arm LaSalle Investment and Franklin Templeton, as well as Mapletree investments, which has earmarked almost $1 billion for Japanese investments, including office buildings, data centres, and R&D facilities.
Meanwhile Franklin Templeton is interested in the loans market; specifically the firm is hoping to get a good deal (discount) on a large portfolio of Japanese loans. It is thought that the intention of the investment would be to earn attractive returns, whilst also giving the firm access to physical assets in Japan.
Given that the global financial meltdown was caused by investments in mortgage backed securities going tits up because many of the mortgages in the packages defaulted, this is a sign that either that international investment is getting back to normal, and/or that Franklin Templeton and its analysts have a great deal of faith in the Japanese economy.
Blackstone plans to buy Morgan Stanley’s Japanese loans, which are securitized by commercial real estate such as office buildings.
The sector is really taking off, after years in the doldrums; travel agencies are even offering “Buy Japanese Property Tours” to wealthy Chinese investors.
According to international realtors, on top of the 2.2 billion already invested, foreign private equity groups, REITs and brokers have earmarked a further $6.6 billion est. for Asian investments, with a particular interest in bricks and mortar assets and property debts in Japan.
“While we are cautious around the country’s fundamentals, we do believe that the sheer size of the market allows for opportunities,” said Peter Kim, Managing Director, at ING Real Estate Investment Management, which has funds invested in Japan.
Japan was not hit by the financial crisis, per se, but in a strange irony is now actually benefiting from it. The Japanese economy and property market crashed and bottomed over a decade ago, in what is termed an L shaped recovery (where the market bottoms and doesn’t come back up). Now that the global crisis zeroed the clocks, Japan has a chance to stimulate and grow in line with its regional neighbours and allies, and is benefiting from trending investments in distressed and discounted residential and commercial assets.
A bottoming out of real estate prices and a recovery in the debt market are some positives investors are buying into, according to analysts.
Distressed or marked-down properties in Japan, such as debt backed by commercial real estate, are also emerging on the radars of foreign buyers.
“We are finding a degree of success in finding deals through trust banks or lenders who have taken control of over-leveraged assets,” said Jacques Gordon, global investment strategist at LaSalle Investment Management.
As foreign money pours in, the real surge in buying may just be starting, predicts Mark Brown, a real estate analyst at researcher Japaninvest.
The gap between what distressed property owners are asking and the amount buyers are willing to pay is closing fast, he notes, adding that would lead to plenty of new deals.
by Overseas Property Mall on Tuesday, August 31st, 2010 in Vietnam Property
Hanoi, the Vietnamese capital is to become home to the second largest tower in Asia, material proof of the growing economic prowess of Asia’s brightest emerging markets.
The design of Nikkei Sekkei, a Japanese architectural firm was chosen for the 102 storey, 528 meter tower to be built in the Me Tri commune in Hanoi’s outlying district of Tu Liem. The est. 1.2 billion dollar tower, financed by the Petro Vietnam Construction Joint Stock Corporation (PVC), the Vietnam National Oil and Gas Group, the Ocean Group and the real estate developer SSG Group, will comprise trade centres, offices for lease and apartments.
The tower is phase 2 of a massive complex being built by the corporation, with phase 1 comprising 3 150m hotel and apartment towers. Construction of phase 2 is due to start in 2011 and take 30 to 36 months to complete. When complete, the tower will be second only to the Burj Dubai Tower in the United Arab Emirates.
This is a big deal for Vietnam. As China and India become global economic superpowers, one would expect them to be coming out with towers like this, for Vietnam the structure will be a symbol of how far the nation has come, and something that all Vietnamese citizens can be proud of.
During the recent global construction and property market boom, Vietnam became known as one of the hottest emerging markets in the world. As the recession crossed from America to the UK and rumours of a global crisis began to emerged, Vietnam was talked about as one of the few markets with a chance of escaping recession.
Unfortunately it suffered a recession, but is thought to be rebounding strongly. The International Monetary Fund is forecasting growth of 6% this year, and 6.5% next year.
There is also undeniably a great deal of wealth in Vietnamese corporations like PVC, and developments like this will not only bolster economic growth, by providing jobs from the lowest level to the highest, but also by growing merchant companies who supply materials for its construction. We will be watching this development very closely and keeping our readers apprised of its progress.
by Overseas Property Mall on Saturday, July 31st, 2010 in China Property
Further evidence has emerged that the Chinese government’s efforts to cool the housing market are finally bearing fruit. According to the government index of 70 cities, house prices fell 0.1% in June compared to May, the first month on month decline since March last year according to experts.
Experts believe that this is the first decline in what will become a downward trend to see out this year and possibly start next year.
“This is a turning point of the overall property price trend,” Yang Hongxu, a Shanghai-based analyst with E-House China R&D Institute, told AFP.
“The decline will continue for several months once the trend is consolidated — probably lasting into the end of this year or the beginning of next year,” he said.
One has to agree with this prediction really, because now that prices have turned investors — confidence dented — will almost certainly adopt a wait and see strategy, and there could also be a major rise in supply as those left holding the hot potatoes try to off load them before their profit evaporates.
There is no way to suggest that confidence won’t be dented, because on a run of record growth like the 16 month run just seen by China, people start to believe that it will never end. This has been especially true of China, where this belief was compounded with regular reports from realtors and supposedly impartial analysts stating that the massively rising population [Can't find a Link to a quote of analysts making such bullish statements, but I know I have read plenty of them, maybe you can have better luck] and rapidly growing affluence would sustain the growth forever more.
Maybe it would have done, but the government has worked hard to end the run of record growth, as evidenced by the fact that June prices were still almost 12% higher than June last year.
The measures started off quite small and highly targeted; things like increasing down-payments on second home purchases, and trying to loosen the relationship between realtors and mortgage brokers. Both perfectly good measures: one aimed at reducing run-away speculation and the other at reducing the likelihood of lenders giving out the level of bad-loans that crippled the US, UK and Spanish banking systems, and all aimed at cooling the market without crashing the economy.
The main target of the government’s efforts has always been the riskiest of speculators, the buyers that would see off plan properties change hands several times before they had even been built.
The first would have been immediately successful in the wider aim, because it meant that speculators would have a higher cash-to-credit ratio, assuming they didn’t scam the system, for instance using friends, family or even their prospective tenant on the mortgage document so they could get a first-timer deal*.
The prospective tenant would have been tempted into it on the basis that their rental payments would go towards the purchase of the property. In this the original speculator would still win because they tenant/buyer would pay a higher price, thus guaranteeing a profit on the property. Anyone with a poor credit rating would surely jump at such an opportunity, provided the profit was not unreasonable, though the main candidates would be close friends and family given the strict judicial system in China.
Apologies for the digression, but it is necessary to show the potential for the government measures failing to cool speculation. Not least because the measures did fail, and certainly not least because the government’s subsequent measures were also aimed at cooling speculation.
Measures that saw third home loans severely restricted to the point of near extinction, and restrictions tightened on advance sales of new developments — off plan is of course primarily the foray of the speculator, especially in a market entirely fuelled by internal buyers**.
**The Chinese property market has seen such incredible growth fuelled entirely by internal Chinese buyers; which in turn saw it fuelled by the massive growth in the Chinese economy, which continued throughout the international downturn. Part of the reason the bubble inflated was of course the fact that the government initiated stimulatory measures in a pre-emptive strike for a recession that never came. This of course caused a liquidity surge, similar to that seen in Australia and Canada, but far worse because of the level of growth the Chinese economy maintained.
In fact, it is because the growth is fuelled by internal buyers that the government’s measures have eventually worked. There is sufficient money and affluence is growing so rapidly that those fortunate enough to be a speculator in the Chinese property market needn’t risk the wrath of the government by taking the kind of shortcuts mentioned above*.
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