RICS Global Distressed Property Monitor Q1 2010
HONG KONG, JUNE 9 /PRNewswire-Asia/ -- Ireland and the US are set to see the biggest rise in distressed sales, says RICS research published this week.
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Real estate professionals expect the number of distressed properties coming onto the market in the second quarter of 2010 to increase across 19 of the 25 countries surveyed. Respondents in Ireland and the US expect to see the fastest growth in activity followed by Scandinavia, New Zealand and Hungary. The UK has also seen deterioration in sentiment with the net balance of those expecting distressed sales to rise moving from 14 percent to 42 percent. However, there is positive news from Hong Kong, Australia, China and India where agents expect distressed sales to decline.
In the first quarter, 17 out of the 25 countries surveyed reported an increase in distressed sales, a marginal improvement on the 18 countries reporting three months earlier. The largest growth in distressed sales was reported in the US, followed by the Republic of Ireland and the UAE. However, the pace of increase moderated across the majority of markets with the UAE a notable exception.
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 20 out of 25 countries down from 21 in the previous quarter.
Henry Li, Chairman of RICS China, said:
"Due to worries over ever increasing residential prices, and financial risks facing by commercial banks, the PBC and the central government have issued series of tighter monetary policies in Q1 2010 with the aim of encouraging a more balanced development for China real estate market. Although China reported a decline in the number of distressed properties hitting the market in Q1 2010 according to RICS Global Distressed Property Monitor, given increasing borrowing costs in China, the risk of rising distressed property listings in China may still exist."
Denys Kwan, Member of External Affairs and Public Concerns Committee, RICS HK, commented:
"The average number of distressed properties for sale in Q1 was approximately 150 per month in these 3-months period. This figure is expected to stay more or less the same level for going into the next quarter of 2010."
The results suggest that banks may be starting to manage down their property loan books particularly in parts of Western Europe. Clearly, Ireland and the UAE stand out as markets where this process is expected to accelerate in the coming months.
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=210
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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