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Latest Global Real Estate Market Updates

RICS
2008-05-16 17:54 1727

HONG KONG, May 16 /Xinhua-PRNewswire/ --

Asian REIT shares may start to offer value

REIT shares across Asian markets have taken a tumble since the onset of the credit crunch although the last few months have seen some moderation in the pace of decline suggesting the sell off may have reached a floor. Japanese REITs make up the bulk of the Asian REIT market, accounting for 60% of overall market capitalization; Singapore REITs account for a further 25%. On a relative valuation basis however, Asian REITs may be starting to offer value when compared to markets in Europe such as the UK where the yield gap remains narrow.

US house prices and sales to continue their declines

Next week brings a further installment of data on the US housing market. Both activity and price will be covered. Neither will be pretty. Thursday 22nd brings data on house prices in March from the Office of Housing and Enterprise Oversight.

The following day the National Association of Realtors Existing Home Sales report will emphasize why the declines are occurring.

Euro area construction output to revert back to slowing trend

Euro area construction data from March is due to be released by Eurostar on Monday 19th. After peaking at 9.5% in March 2007, annual growth in the seasonally adjusted construction production index has been on a moderating trend. We believe this improvement will be short lived.

Aside from waning confidence, perhaps the clearest indication yet that construction will continue to slow is that building permits, a lead indicator of output, are still contracting (they fell by 10.1% on year ago levels according to the latest data).

UK housing transactions continue to slide

Official data from the Inland Revenue on the number of residential property transactions (in English and Wales) that took place in March will be released on Wednesday 21st.

A lack of transactional activity need not result in material drop in house prices as long as homeowners feel under no pressure to sell. Distressed sales, which so characterized the property market in the early 1990s, are still largely absent.

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RICS

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Source: RICS
Keywords: Real Estate
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