RICS Global Distressed Property Monitor Q4 2009
HONG KONG, March 1 /PRNewswire-Asia/ -- The US and Japan are set to see the biggest rise in distressed sales in the first quarter of 2010, says RICS research published today.
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Real estate professionals expect the number of distressed properties coming onto the market to increase across 18 out of 25 countries surveyed. Respondents in the US, Japan, China, Germany and the UAE expect to see the fastest growth in activity. That said, respondents in Brazil, India, Hong Kong and Australia are more optimistic and expect fewer distressed property listings in these countries.
In the current quarter, seventy percent of the countries surveyed reported an increase in distressed sales, a slight improvement on the eighty percent reporting three months earlier. The biggest pick up in distressed sales was reported in China, followed by Spain, Japan and the Republic of Ireland but the pace of increase moderated across the majority of markets compared to the third quarter. Indeed, Brazil, Hong Kong, Australia and India reported a decline in the number of distressed properties coming onto the market.
RICS members work on both sides of any distressed property transaction. Consequently, the survey asked surveyors whether the level of interest from specialist funds in distressed properties was increasing. Levels of interest rose across 21 out of 25 countries up from 18 in the previous quarter with Spain, Republic of Ireland, UK, US and Scandinavia seeing interest rise at a faster pace.
Henry Li, Chairman of RICS China, said:
"A biggest increase in distressed sales was reported in China in Q4 2009, although this follows on from 2 quarters of declining activity. China's State Council recently issued a circular detailing the eleven general guidelines laid down by the State Council on 7 January 2010, designed to stabilise property prices and increase risk management of real estate credit in the banking system. The level of interest from specialist funds in distressed properties in China is expected to continue to increase in Q1 2010. The net balance between the level of the interest from the funds and the expected distressed properties coming onto the market shows the demand is rising at a faster pace than expected."
Denys Kwan, Member of External Affairs and Public Concerns Committee, RICS HK, commented:
"Comparing statistics provided by the Rating and Valuation Department, we can see an upward trend in both rental and property prices across all three sectors including the Residential, Office and Retail markets. A slight drop of the total number of distressed properties for sale is observed in Q4 2009, the figure continued with a sharp fall from Q4 to January 2010 as a result of continuous increase in property prices."
Notes to Editors:
A distressed property is defined as a property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed property usually fetches a price that is below its market value.
If you would like to download the full report, please click at the link below: http://www.ricsasia.org/newsDetail.php?id=162
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 .
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