RICS Global Commercial Property Survey Q2 2010
HONG KONG, July 28 /PRNewswire-Asia/ -- The property market in Hong Kong and mainland China has continued to strengthen further into Q3 says the RICS Global Property Survey published today.
Occupier demand is rising in Hong Kong while mainland China rose at a faster pace for the fifth consecutive quarter. Significantly, surveyors are optimistic on rental increases in Hong Kong with rental expectations to rise at a slightly faster pace for the fourth consecutive quarter. Interestingly, having stabilized in investment market in Q1, growth in transaction activity moved higher again in Hong Kong and at the fastest pace in 9 months. Looking forward into the third quarter of 2010, sentiment towards capital values is strong in both Hong Kong and mainland China albeit at a slower pace into Q3 in the former.
RICS member Francis C W Li, Head of Investment, North Asia of DTZ said:
"The Hong Kong property market in general is very tight in terms of new supply and benefited from an early recovery of the Chinese economy. The high liquidity and low interest rate environment favour investments into real estate to hedge against up-coming inflation."
Indicators for occupier demand, rental expectations and the number of investment bidders per property in mainland China still remain strong despite measures introduced by the Chinese government to address the property boom. Not being threatened by the recent government tightening measures, surveyors continue to expect price rises in commercial property in mainland China into Q3 and at a similar pace to the previous quarter.
Rental expectations increased at a slightly faster pace than Q1 which moving from +21 to +26. Interestingly, capital values increased at a marginally faster pace, improving to +59 from +55 although expected capital values moderated a touch to +38 in Q2.
Elsewhere in Asia, latest figures from Singapore indicate rental expectations turned positive for the first time in 2 years as actual rents rose modestly in a strengthened lettings activity. Thailand was one of the few markets in the Asia where sentiment has waned in the most recent quarter.
From a global perspective, property markets in the more dynamic economies of South America, Asia and Eastern Europe are outperforming those in the UK and Eurozone. On the occupier side, Brazil recorded the most positive net balance with 85 percent more surveyors indicating a rise in demand for space. Brazil also came out on top regard to rental expectations, with a net balance of 74, followed by Hong Kong, India and Peru. The outlook for capital values broadly mirrors the rental trends with Brazil and Peru leading the country rankings. Significantly, France is bucking the negative Eurozone trend with more material signs of an upturn in sentiment towards real estate reflecting, in part, the relatively resilient performance from the domestic economy.
RICS chief economist Simon Rubinsohn said:
"The real estate world continues to be split broadly speaking between the emerging and developed economies. Strong growth in many of the former, including the likes of Brazil, Hong Kong and India, is continuing to boost demand for new space from occupiers as well as encouraging investment activity. Meanwhile in many of the latter, fiscal retrenchment allied to bank deleveraging continues to place significant obstacles in the way of a meaningful recovery in the commercial property market."
Notes to Editors:
RICS’ Global Commercial Property Survey is a quarterly guide to the developing trends in the commercial property investment and occupier market. This edition details market conditions for the 2nd quarter of 2010 based on information collected from leading international real estate organisations and local firms.
If you would like to download the full report, please click at the link below:
http://www.ricsasia.org/newsDetail.php?id=225
About RICS & RICS Asia
RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 122 countries.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People’s Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: http://www.ricsasia.org .
Media enquiry, please contact:
RICS Asia Public Relations Representative
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