Singapore’s second-biggest lender, Oversea-Chinese Banking Corp (OSCB) said the country’s disappointing property market looks set to improve after the biggest economic contraction in the past three years, The Straits Times reported.

“The long-term prospect for the Singapore property market, both on the residential and commercial side, I think continues to be attractive,” OSCB chief executive officer Samuel Tsien told the newspaper.

Residential prices have decreased for the past seven quarters which is the longest run of declines in Singapore since 2002 with the second quarter seeing a 0.9 percent drop in private home prices. Office rents also fell for the first time in more than two years. Property brokerage Cushman & Wakefield Inc. estimated that up to four million square feet of prime space could be added in 2016.

There was a 42 percent fall in home purchases in June from the previous month. This was the lowest amount of purchases this year as developers held back the sale of new projects. Unsold private housing units rose eight percent in the second quarter from the previous three months, according to government data. AsiaOne notes that 89,000 new private residential units, including executive condominiums, are scheduled to be completed during the next four years.

Singapore’s declining economy and property curbs, including higher real-estate taxes and stamp duties, are partly to blame for the lack of demand. Singapore’s GDP has fallen by 4.6 percent, highlighting the weakening outlook for Asian nations amid sluggish global growth, The Straits Times noted.

“Right now, the interest is less robust, partly because of the general economic slowdown, partly because of certain measures that were taken,” Tsien said. “Long term, the demand will definitely be there.”

However, the short term may not be so friendly. Chua Hak Bin, head of emerging Asia economics at Bank of America Merrill Lynch, warned that Singapore might enter a period of stagnation over the next couple of years.

Iskandar Malaysia’s property sector has slowed down recently but other sectors, manufacturing in particular, continue to perform well according to the Iskandar Regional Development Authority IRDA). With sales success stories both domestically and overseas, the IRDC isn’t worried about downtown in the region’s property sector.

“Over the past nine years, Iskandar Malaysia has been growing with consistency and quality, I think that is foremost in our mind,” IRDA Chief Executive Datuk Ismail Ibrahim told Malaysian state media agency, Bernama. “This consistency and quality shows that Iskandar Malaysia continues to be competitive as we are able to present it in terms of the many elements that make this region attractive for investment, for work as well as for living.”

Ismail added that one of Iskandar’s biggest challenges was balancing development with maintaining the green agenda and sustainability.

“During the early days, the challenge was mainly to win the hearts and minds of the people and the business community, to convince them that Iskandar Malaysia was ‘the thing’ for them,” he noted. “The challenge today is really about how to convince people on what more is coming for them in Iskandar Malaysia (and) what more the government is going to build, in terms of the ecosystem that makes Iskandar Malaysia more competitive,” he said.

There are a few economic sectors are already moving under their own momentum, but others have stalled and now have some catching up to do. “The (sectors) that have been experiencing growth consistently are tourism, education and healthcare. We have now almost completely covered the second phase of Iskandar Malaysia’s roadmap,” Ismail said to Bernama.

He believes three more sectors – creative, logistics and oil and oleochemicals – are likely to become a bigger factor in Iskandar during the next couple of years. The other three sectors completing the total of nine under the Iskandar Malaysia masterplan are electrical and electronics; food and agro processing; and financial services. Ismail states these sectors will not get going for a few more years.

Critics of Iskandar say the project is jeopardising Kuala Lumpur’s present role in the Malaysian economy, according to Bernama. Ismail countered by saying the economic region offered an opportunity to create an alternative for the business community.

The SIN Capital Group has purchased the Thong Sia Building to for SGD380 million, JLL announced in a press release. The building is currently made up of seven levels of commercial space and a 19-level residential tower with 37 apartment units.

The building is located on the popular Orchard Road shopping-belt and is across from The Paragon Shopping Centre and Mount Elizabeth Hospital. The 26-storey tower is situated along Bideford Road.

The deal works out to SGD2,430 per sq. ft. over the existing gross floor area for the freehold building. The building has a land area of about 21,602 sq ft and was completed in 1981. It was put up for sale in December of last year with offers estimated to come in of between SGD400 million and SGD420 million.

The owners eventually lowered their minimum price to SNG380 million and the deal with Sin Capital was executed during the 10-week private treaty period following the close of the second tender exercise.

“The planning authority has advised that they are prepared to support the redevelopment of the site into a mixed residential and commercial development with at least 60 percent of the space set aside for residential or serviced apartments.” JLL’s international director, Karamjit Singh, said.

He added that this is the first collective sale for 2015, and the largest ever mixed use collective sale in Singapore. The completion of the sale is subject to the approval by the Strata Titles Board, JLL noted.

According to JLL, the sale of the freehold Thong Sia Building is the second largest collective sale over the last seven years, after Serangoon Plaza which was sold for SGD400 million in 2013.

“Singapore’s Orchard Road is world renowned, and in the top league alongside London’s Bond Street, Paris’ Champ Elysees and Tokyo’s Ginza. Property ownership in this district, especially freehold, is a matter of great prestige, privilege and value,” Singh said

Donald Trump took a quick break from his presidential campaign to sell his penthouse in New York’s Trump Park Avenue building. According to real estate listing agent Michelle Griffith, the swanky accommodations fetched USD21 million.

Although he has never lived in the building, the real estate mogul, television star and budding politician was the first and only owner of the unit located on the 24th floor of the 32-story tower on Park Avenue at 59th Street in Manhattan, Griffith told the Wall Street Journal.

The newspaper’s search of public records showed the penthouse measuring in at 6,200-square-feet while the property listing showed the property having 10-foot ceilings, five bedrooms, seven bathrooms and a powder room. In 2013, the unit was first put up for sale with a price tag of USD35 million; however, it was last offered at USD24.995 million, according to the Wall Street Journal.

Ivanka Trump, executive vice president of development and acquisitions of the Trump Organization and Trump’s daughter, confirmed the sale. She also happens to have an apartment in the Trump Park Avenue building.

Griffith, an agent with Trump International Realty, said there was an offer to rent the penthouse for more than USD80,000 a month, but Trump decided to complete the sale instead. “In his mind, it was a strong market and it was a good time to get a deal done,” Griffith explained.

In regards to the sale, Trump said, “(It) is a testament to the building, its incredible location and the strength of the Trump Brand.” The newspaper reported the home was bought by a US couple with an international real estate portfolio that wished to remain anonymous.

The Republican presidential hopeful has assets estimated to be at least USD1.5 billion, with holding in real estate and entertainment companies to restaurants. He is currently among the leaders in the race for the Republican presidential nomination.

Image: Evan Joseph Images via www.wsj.com

The final drafting stages of the legislative process have started for the Cambodian Construction Law that will help introduce much-needed international standards to the local property industry, the Phnom Penh Post reported.

These laws will ensure Cambodian developers have to abide by a national building code and other laws which are currently not in place. Several developers have begun to prepare for the changes by hiring international sub-contractors to help make up for the skill and knowledge shortage currently found in the Cambodian property industry.

“Cambodian developers are increasingly employing Thai, Singaporean, Vietnamese and other international architects to help them plan new developments,” Elain Younn, director of 240 Development Company, told the Phnom Penh Post.

Younn added that local developers are not ready for the cost of this guidance in terms of construction standards. Bringing in international sub-contractors for the construction process, including structural engineers, plumbers, electrical engineers, lift installation specialists, security equipment and fire safety standards has seen the price of completed projects rise threefold in some instances. The trade off of a higher price is a safer building, however.

“What we are seeing across the development market is an ongoing education process with real and physical examples that demonstrate the value of quality – and this means people no longer feel assured living in substandard buildings,” said Younn.

Many ASEAN countries are aiming to increase their appeal to foreign investors and Cambodia decided to improve its building practices in response to this movement. The upgraded building laws could help improve its status in the eyes of foreign investors. The country already has cheap land prices as well as untapped economic potential.

“The major attraction for foreign investors considering buying property in an ASEAN country is Cambodia’s steady economic growth; phenomenally steady growth averaging 7.5 percent, year-on-year, for the last five years. This puts Cambodia as the number 21 worldwide in growth, and number 1 in the region,” Rami Sharaf, CEO of WorldBridge International Group, said.
Image via investphnompenh.com

Private home and average rental prices in Singapore declined for the sixth consecutive quarter according to a report by Knight Frank. Private home prices dipped by 3.8 percent while rental prices dropped 3.9 percent year-on-year.

There was a 5.7 percent drop in sale transaction volumes year-on-year for the third consecutive quarter across all markets in the country. Knight Frank pointed out that the decline was due to the Central Core Region (CCR) and the Executive Condominium (EC) market among other factors.

The CCR saw significant decreases in sales volume during the first quarter with only 375 units sold out of the 2,655 available in Singapore. That made for 49.1 percent decrease quarter-on-quarter.

There was a decline in sales of ECs during the first quarter. Knight Frank reported that total new sales declined by 70.7 percent quarter-on-quarter. Only one EC development, The Amore, launched in the quarter which was one reason for the decline. These figures are a significant improvement on the figures from Q1 2014. New sales volumes of EC units rose by 118.8 percent year-on-year.

Knight Frank predicts these factors along with a lack of desire to purchase will encourage developers to reduce prices on new developments in the city-state. Home prices could drop between three to four percent over the year as a whole, the company predicted.

The second quarter will see several projects in Singapore launch. Among these are Botanique at Bartley and North Park Residences. Sales volumes for the quarter are estimated to be between 2,200 and 2,400 which would be a marginal decline from the volume in Q1.

By the end of 2015, it is expected that 19,000 new units will be have entered the market. This will increase the overflow of supply in Singapore and that could have a profound effect on the property market. Knight Frank noted that landlords would need to adjust their prices to secure tenants for their vacancies. A rental decline of three to five percent is expected for 2015.

Property ownership rules in Indonesia will soon be relaxed allowing for foreigners to legally purchase luxury properties in the country. While plans have yet to be finalized, the government is aiming to push through the legislation sometime in next couple of months.

Sofyan Djalil, the coordinating minister for Economic Affairs, told reporters at a press conference last week, “We will discuss the technicalities. We will set up a coordination meeting to discuss this new regulation. Hopefully, in the next two to three months, all will be clear.”

Foreigners will only be allowed to own luxury apartments and will be subject to a number of restrictions including minimum buying limits. Djalil also noted that landed property would not be available for foreign ownership.

“If people from developed nations want to retire here or spend their winters here, then that will create jobs and boost spending power,” Djalil said. “It will make the property market live again.”

It is not possible for a non-Indonesian to own property in the country at the moment; however, some people have passed over these restrictions by using working with local citizens or through a long-term lease.

Other ASEAN countries including Thailand has similar restrictions on foreign ownership while some states in Malaysia have minimum buying limits like those being proposed by Indonesia.

Ray White Group Property chairman Brian White told the Australian Financial Review that the news is wonderful and said many Australians could take the opportunity to retire in Indonesia once the rules on foreign ownership are relaxed.

“As people get to retirement age, they want to know where they can get the best bang for their buck, not just in terms of property, but in terms of lifestyle and cost of living. Asian countries score highly,” he stated. “Lot of Australians have moved to Thailand and Malaysia. The number of Australians visiting our offices in Bali suggest similar appetite for real estate, but the current ownership structure could not be more unattractive.”

The Philippines ranked inside the top 15 countries attracting the interest of American overseas property buyers in the year ending March 2015, according to research from the 2015 Profile of Home Buying Activity of International Clients produced by the National Association of Realtors.

The country was responsible for more than 2 percent of all overseas buying interest and was placed alongside Jamaica, Germany, France and Brail. It was also Southeast Asia’s only representative in the top 15 most-enquired countries.

Although the survey focused mostly on the purchase of U.S. properties by foreign buyers, a few of the questions addressed the experience of U.S. residents purchasing properties in other countries.

Jed Smith, Managing Director of Quantitative Research for the National Association of Realtors, told PropertyGuru: “Filipinos make up a larger ethnic group than Thais and Malaysians within the United States, so it makes sense that the Philippines constitute a larger share of searches.”

He added that Filipino U.S. residents search for properties in their home country, possibly for retirement, investment or as a residence for their families.

There were more than 2.6 million Filipinos living in the U.S. according to the latest census data from the United States. This compared to just 179,000 Thais and less than 20,000 Malaysians.

The vast majority – approximately 94 percent – of real estate agents reported they did not have a client interested in buying foreign property but among those who did have clients interested in purchasing property abroad, the countries that generated the most inquiries were Mexico, Costa Rica, Canada, Italy, the United Kingdom, and other countries in Latin America.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Overseas buyers and investors of London property will be eagerly awaiting the Southeast Asia launches of the latest development from Galliard Homes in what is part of Dockland’s largest residential scheme close to Canary Wharf.

The prolific British builder, in a joint venture with Frogmore and Cain Hoy, is launching Harbour Central at 2 Millharbour Dock Basin. This will see a £550 million transformation of a 2.65 acre industrial site into a new Manhattan style ‘vertical village’ for Canary Wharf.

Harbour Central will provide 901 new homes, retail, commercial, leisure and parking facilities in five mixed-use towers, up to 41-storeys high, designed around two new London green squares.

Located off Lighterman’s Road close to Millharbour Dock Basin Harbour Central is designed by multi-award winning international architects Rolfe Judd. Galliard Homes have used Nicola Fontanella of design house Argent Design, to create striking Manhattan and Art Deco themed interiors in the main foyers, the entertainment and leisure facility and an apartment interior scheme.

Known for glamorous interiors, Argent Design specialises in luxury residential projects in London, New York and Miami with a triple-AAA client list which includes Madonna, Guy Ritchie, Richard Caring and Sally Burton.

Harbour Central will provide 624 homes for private sale, 277 intermediate and affordable rented homes, 10,538 sq ft of ground floor retail and commercial premises and an 11,292 sq ft six-storey New York-style entertainment and leisure facility.

The architectural centrepiece of Harbour Central will be two iconic high rise residential towers, 41- and 35-storeys high, providing homes for private sale comprising studio, one-, two- and three-bedroom apartments and four/five-bedroom premier and duplex penthouses.

The towers have striking New York style Art Deco themed façades with expanses of glass, bronze effect panels and ceramics with brise-soleil feature screens and traditional and covered balconies.

The third tower will be 24 storeys high and features apartments for private sale, whilst the final pair of towers, eight- and 27-storeys high, will provide intermediate and affordable rented homes. At the base of some of the towers will be high quality retail and commercial premises for shops, cafes, bars and restaurants.

Located by Millharbour Dock Basin, where the area’s most prestigious residential buildings are situated, Harbour Central is five minutes’ walk from Canary Wharf – itself a major transport hub with underground, Docklands Light Railway, Thames Clipper shuttle services and the London City Airport.

Crossrail is also scheduled for 2018.

Harbour Central launches in the U.K. today (Thursday) with the release of apartments in the 41-storey Maine Tower. Studios average 370 sq ft in size and prices start from £350,000, while a three-bedroom apartment average 1,075 sq ft in size and will set you back from £1.25 million.

Source: www.galliardhomes.com

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Ultra wealthy individuals are buying up luxury homes around the world to diversify their holdings, according to a new report by Wealth-X and Sotheby’s International Realty.

The joint report, Europe, Middle East and Africa Luxury Residential Real Estate Report For 2015, provides insight into the EMEA region’s luxury residential real estate market, and identifies purchasing and investment opportunities for ultra-high-net-worth (UHNW) individuals looking to diversify their holdings.

The report showed that the UHNW Residential Real Estate index, tracked by Wealth-X, hit a new record high of 112.1 in the first quarter of 2015, up nearly 4 percent from the fourth quarter of 2014, and 7 percent from the first quarter of 2014. This highlights the strength of the global luxury real estate sector on the back of demand from UHNW individuals.

The index takes into account the full range of luxury residential properties towned by the world’s wealthiest individuals. Wealth-X data showed there are 211,275 UHNW individuals globally who collectively own nearly US$3 trillion of real estate, equal to 10 percent of their net worth.

Below are other key findings from the report:

• The EMEA (Europe, Middle East and Africa) region offers purchasing and investment opportunities, particularly in Madrid, Dubai and Cape Town (three EMEA cities featured in the report), where luxury properties and strong lifestyle considerations may appeal to UHNW buyers.
• London remained the top real estate hub for the EMEA region. The city’s price per sq ft (US$3,103) is nearly four times that of Dubai, and six and nine times more than Madrid and Cape Town respectively.
• One-third of all premium London properties for sale (homes valued above US$1 million) are worth more than US$10 million. By comparison, Dubai has only 8 percent of its luxury properties listed in the super prime range above US$10 million.
• The less expensive price per sq ft for premium real estate in Cape Town generally leads to larger houses. A luxury property in the South African city has six bedrooms on average – higher than Madrid and Dubai, the two other cities profiled in the report.

Wealth-X President David Friedman said: “Because it touches upon several key elements in an ultra-affluent individual’s life, including lifestyle, investments and family, luxury residential real estate encapsulates a core part of their identity.

“As their wealth continues to grow, so will their investment fuelled by flight to safety from less geopolitically stable geographies.”

According to Philip White, President and Chief Executive Officer of Sotheby’s International Realty Affiliates, this joint report was designed to provide a deeper understanding of the UHNW consumer, specifically in the EMEA region.

He said: “The research shows that trends and the economic climate in some EMEA countries are stimulating alternative investments such as real estate in these local markets.

“These opportunities are exciting and we are proud to be able to provide an in-depth look at them.”

Download the full Europe, Middle East and Africa Luxury Residential Real Estate Report here. 

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Tight housing supply saw average house prices in the United Kingdom in the three months to May 2015 rise by 2 percent compared with the preceding three months, according to the latest Halifax House Price Index.

Martin Ellis, Housing Economist, said: “Annual house price growth rose marginally from 8.5 percent in April to 8.6 percent in May, and continued to be in the narrow range of between 8 and 9 percent where it has been throughout 2015 so far.

“Housing supply remains extremely tight with the stock of properties available for sale currently at its lowest level for many years. At the same time, ongoing economic recovery, increasing employment, real earnings growth and very low mortgage rates are all supporting housing demand.

“This combination has kept annual house price inflation well above earnings growth although activity levels are subdued.”

He summarised that the imbalance between supply and demand is likely to continue to push up house prices over the coming months.

“Looking further ahead, the increasing level of house prices in relation to earnings is expected to dampen house price growth,” he added.

The number of sales fell during April. U.K. home sales dropped by 3.4 percent between March and April to 97,020 nonetheless, sales in the three months from February to April were marginally higher (+1.3 percent) than in the preceding three months.

Mortgage approvals continued to pick-up. The volume of mortgage approvals for house purchases – a leading indicator of completed house sales – increased by 9.9 percent during April.

Whilst approvals in the three months to April were 6.6 percent higher than in the preceding three months, they were 4.3 percent lower than in the same three months a year ago according to Bank of England figures.

Supply remains tight. The stock of homes available for sale fell further in April and is currently at its lowest level for many years, according to Halifax. New instructions declined in April for the eighth month in the last nine, contributing to the very low levels of supply.

There was a notable increase in those thinking that now is a good time to buy. The latest Halifax Housing Market Confidence Tracker showed the net proportion of consumers who believe the next 12 months will be a good time to buy increased from +21 in March to +26 in April. In contrast, the net proportion that thinks that the next year will be a good time to sell fell from +33 to +30.

The headline House Price Outlook balance (i.e. the difference between the proportion of people across Britain that expect the average property price to rise less the proportion who think it will fall) fell to +58 in April from +64 in March 2015.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

To cater to its international buyers who visit London regularly, particularly those from Singapore, Malaysia and the rest of Southeast Asia, British builder Weston Homes has opened an office in the heart on central London.

The new corporate office suite in Marylebone’s Portman Square aims to capitalise on the West End’s global clientele and strong local property and investment communities.

Located in British Land’s landmark glass and steel building at 10 Portman Square, the new ground floor corporate suite has a multi-functional role. It will display the company and its projects to a range of audiences, including investors, agents, bankers, landowners, joint venture partners, premium-clients and multiple purchasers.

The company is just one of a number of leading British house builders to establish special corporate suites in London’s West End.

Bob Weston, Chairman and Managing Director of Weston Homes, said: “Due to the scale of their operations and size of staff, many major house builders, including ourselves, have their head office outside of Central London.

“However many of our investment, land and other commercial meetings and deals are made with firms and people who are London based or visit the locality frequently. This is why we felt that a multi-functional corporate suite in the heart of the West End would be useful for engaging with our target audiences and giving us a strong brand presence in the heart of London’s property and investment communities.”

The new corporate suite will be formally unveiled at a special launch party today (Wednesday), where the company intends to use the occasion to showcase its current and pipeline projects, which include the regeneration of the former Telegraph Works site in Greenwich.

Image: Aura, one of Weston Homes’ off-plan developments that has been sold throughout Southeast Asia in recent months.

Source: http://www.weston-homes.com

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

With new foreign property ownership laws coming into effect in Vietnam on July 1 as part of the Law on Residential Housing (LRH), the Ministry of Construction has made some proposals under the draft decree providing detailed guidelines on the implementation of the new foreign property ownership laws in Vietnam.

Proposals were issued by the Government at the end of last month and more are expected during this month however detailed below from CBRE Vietnam are the notable proposals from the draft decree on the implementation of new laws that potential foreigner property buyers and investors should be aware of.

Valid passport and visa:

Overseas Vietnamese bearing Vietnamese nationality must possess a valid Vietnamese passport; those holding a foreign passport must produce documents evidencing their Vietnamese nationality under the Nationality Law.

In the case of those with Vietnamese origin, they must possess a foreign passport together with written certification of their Vietnamese origin issued by competent Vietnamese authorities.

For foreign passport holders, these must have immigration stamps from the immigration authority. As far as CBRE understands, these can be visas that are obtained on arrival by many nationalities.
Separate “Red Books” for mini condos:

Individual houses built with two or more floors with designs on each floor, built in the closed style, with floor space from 30 sm upwards, and meet the conditions prescribed by law, shall be issued ownership titles for each apartment in that house.

Extension of ownership term:

Before the expiry of three months of home ownership, foreign individuals need to submit an application dossier to the competent authority for consideration and approval of one additional 50-year extension of the ownership term.

Before expiry, the owner can also sell or donate the house as prescribed by law. The purchasing or receiving party will be allowed for an indefinite term of residence if they are a Vietnamese citizen, or are Vietnamese residing abroad. If not, the house ownership term will be only for the remaining term. When the term expires, house ownership and rights of land use shall be transferred back to the initial owners, then their heir or legal successor of the initial owners or individuals, or the organisations as prescribed by law.

What is not allowed for foreign ownership?

The Ministry of Defence and the Ministry of Public Security have the responsibilities of specifying prohibited areas or areas restricting foreign citizens. These two Ministries will provide written notices to the provincial People’s Committee to direct the Department of Construction to specify each investment project built commercial housing in the province to be sold to foreign individuals and organisations.

The 30% cap for condos and 10% cap for villas and town houses:

Foreign organisations and individual ownership of units in an apartment building may not exceed 30 percent of total units in one apartment building. In the event of an area with a geographical boundary equivalent to ward level, with many apartment buildings for sale or lease purchase, then foreign organisations and individuals may own no more than 30 percent of the total units of each apartment building, and not more than 30 percent of the total units of all the apartment buildings.

For housing projects that have separate houses for sale or lease purchase, the foreign organisations and individuals’ ownership must not exceed 10 percent of the total number of separate houses for each project. In the event of an area with geographical boundary equivalent to ward level with several projects where the number of individual houses is more than 2,500 units, the foreign organisations and individual’s ownership must not exceed 250 units.

Authority’s control over the capped amounts of foreign ownership:

The information on the list of residential project allowed for foreign individuals and organisations to sell, lease and purchase, as well as the number of houses owned by foreign individual and organization that have been granted certificates will be posted on the website of the Department of Construction.

Further information regarding the comparison between the current and the new law on residential housing can be viewed here, when CBRE issued a statement in November 2014 when news first emerged f the change in foreign property ownership in Vietnam.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story based on information supplied by CBRE Vietnam. To contact him about this or other stories email andrew@propertyguru.com.sg

Five countries accounted for more than half of all international property purchases in the United States in the 12 months ending March 2015, with China overtaking Canada as the leading nationality for the first time.

Total unit sales from international homebuyers decreased from last year, however total sales dollar volume increased by 13 percent according to the National Association of Realtors (NAR) 2015 Profile of Home Buying Activity of International Clients.

For the period of April 2014 through March 2015, total international sales were estimated to be worth US$104 billion, compared to the previous year’s estimate of US$92.2 billion. This represents 8 percent of total existing-home sales dollar volume.

NAR Chief Economist Lawrence Yun (pictured) said: “During 2014, sales transaction to buyers outside of the U.S. dropped by 10 percent, possibly due to the strengthening of the U.S. dollar in relation to international currencies and a weakening of foreign economies’

“However, the amount of money spent has increased; this means international purchasers in the U.S. have become an upscale group of buyers, spending more money on fewer homes.”

In 2014, just five countries accounted for 51 percent of all purchases by international buyers: China, Canada, Mexico, India and the United Kingdom. For the first time, buyers from China exceeded all other countries in terms of units purchased and dollar volume, purchasing an estimated US$28.6 billion worth of property. Buyers from Canada followed with US$11.2 billion in purchases, followed by India with US$7.9 billion, Mexico with US$4.9 billion and the U.K. with US$3.8 billion.

International buyers tend to purchase properties that are more expensive, with the average purchase price being US$499,600 compared with the overall U.S. average house price of US$255,600, according to NAR. Chinese buyers typically purchased the most expensive properties, at an average price of US$831,800.

Some 35 percent of real estate agents reported working with an international client in 2014, up from 28 percent in 2013. About 46 percent of reported international transactions were intended for primary residences, 20 percent for residential rentals, and 26 percent for investment rentals, vacation homes or both.

Global buyers also purchased properties for commercial rentals and as residences for children studying in U.S. educational institutions. Indian buyers were the most likely to purchase a primary residence (79 percent), while Canadian buyers were most likely to purchase property as a vacation home (47 percent).

While international buyer clients purchased property across the nation, four states accounted for half of all international sales: Florida, California, Texas and Arizona. Florida remains the top destination for international buyers, claiming a 21 percent share of all foreign purchases. California comes in second with a 16 percent share, Texas with 8 percent and Arizona with 5 percent.

Chinese buyers tended to gravitate towards the West Coast, which provides ample education, business and trade opportunities, while Canadians seeking winter vacation opportunities focused on the Southwest and Florida.

The majority of international purchases (55 percent) were made with all-cash, compared to about 25 percent of all purchases made by domestic buyers.

Mortgage financing tends to be an issue for non-resident international clients because of a lack of a U.S. based credit history or social security number, difficulties in documenting mortgage requirements, and financial profiles that can be different from those normally submitted to financial institutions by domestic residents.

“Working with a realtor gives buyers from across the globe a considerable advantage,” said NAR President Chris Polychron, Executive Broker with 1st Choice Realty in Hot Springs.

The National Association of Realtors is ‘The Voice for Real Estate’ and is America’s largest trade association, representing one million members involved in all aspects of the residential and commercial real estate industries.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Offering the beauty of Lombok Island in West Nusa Tenggara, Indonesia, Private Sanctuary, a Hong Kong-based real estate developer, is selling its new project called Mandalika View.

Located on a hill in prime location Kuta (pictured), Mandalika View offers spectacular ocean views of Kuta Bay on one side and Grupuk Bay on the other. A proposed golf course will ensure some much-needed tranquillity for a holiday home.

In this 31,480 sqm location, Private Sanctuary is offering 17 plots ranging in size from 1,184 sqm to 2,432 sqm. Plot prices at Mandalika View start from US$96,000 and rise to US$199,350.

Buyers can build their dream two- to five-bedroom, fully furnished villa, starting from US$165,000 for a two-bedroom unit (150 sqm), US$290,000 for a three-bedroom (280 sqm), and up to US$380,000 for a five-bedroom unit (400 sqm).

“Of our 17 plots, as many as four plots have been sold to expatriates,” said Key Amelia, Sales Manager at Private Sanctuary.

She added that as with their previous project, Coconut Creek in Selong Belanak, Mandalika View is also targeting international investors.

Previously, Indonesian President Joko Widodo had agreed to develop the Mandalika Special Economic Zone (SEZ) after being neglected for 20 years.

Tobi Döringer, Co-Founder of Private Sanctuary, said: “The President has agreed to start the development of the Mandalika SEZ in August this year, and to inject Rp1.8 trillion for the construction of its basic infrastructure.”

He further noted the construction of the basic and supporting infrastructure of the Mandalika SEZ required a total investment of as much as Rp36 trillion.

Anto Erawan, Indonesia Editor for PropertyGuru Group, wrote this story and was a guest of Private Sanctuary Limited as part of a media trip.

British property developer Galliard Homes, a familiar name throughout Southeast Asia due to its extensive customer base in the region, in conjunction with Cain Hoy and ARV Investments, has paid in excess of £15 million in order to acquire full ownership and control of a site close to the Chiswick Roundabout in the London Borough of Hounslow shared previously with London & Bath Estates.

Under plans led by commercial specialist London & Bath Estates, the site was to house a £120 million landmark 50-metre tall office building, complete with advertising billboards, known as The London Octopus. Although there was some interest from overseas corporations in an office building solution, eventually this did not come to fruition due to competition from existing office provision locally.

Now that control of the site has come fully under residential specialist Galliard Homes the company has reviewed the approach and will now look at plans to create a residential-led project on the site (pictured is an artist’s impression of one design), with detailed plans to be submitted to Hounslow this autumn.

Stephen Conway, Chairman and Chief Executive of Galliard Homes, said: “We believe that a premium residential-led project on this gateway site in West London will be commercially viable due to the continuing lack of new housing being provided across Greater London.

“The West London economy has emerged from the recession so these are particularly exciting times for Hounslow and Chiswick. There is an ongoing demand for new homes in the capital and so we are looking at devising plans that will meet local needs and assist with the regeneration that is occurring across the whole area.”

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Singapore’s sluggish property market saw over 2,000 property agents leaving major real estate agencies during the first three months of 2015, as shown in industry data published in the media.

Notably, there were 23,947 agents as at 1 April, down eight percent from the 26,014 agents towards end-2014. The latest labour market report from the Ministry of Manpower (MOM) showed that the number of people employed in the real estate sector fell by 1,900 between January and March, compared with Q4 2014.

“When the market is going through a lull period, it is only logical that some will seek temporary income-generating jobs or alternatives. Many have in fact left the industry because of poor income,” said Institute of Estate Agents (IEA) president Jeff Foo.

Among those who left was Brian Chan, who opted to take a break to continue his studies. “It used to be that we could close rentals very quickly. Then things started slowing down and the process could go on for months. It’s even worse for sales. It’s become very competitive because agents have to earn a living, and there are so many agents around,” said the 31-year old former agent.

Singapore’s biggest agency. ERA Realty Network saw its number of agents fall to 5,866 at the start of April, from 6,132 towards the end of 2014. Nonetheless, the agency managed to bring its numbers up to over 6,000 this month, said Eugene Lim, key executive officer of ERA. Lim noted that having a bigger team of agents could help put the agency in a better position to pitch for marketing assignments with property developers.

Meanwhile, Savills Residential bucked the trend when it posted an increase in its number of agents, from 739 to 781 in Q1. In fact, the agency has raised this number to almost 800 now. According to George Tan, senior director and head of Savills Associates, the increase was primarily due to the firm’s initiatives, like conducting training for its agents, as well as providing good administrative support and ample project marketing activities.

Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email cheryl@propertyguru.com.sg

Overseas property buyers and investors now have the option of investing in hotel rooms in the Philippines.

For the first time in its almost 30 year history, the award-winning Century Properties has embarked on its first ever hotel project in partnership with the world-renowned hotel chain Accor.

The real estate firm is now offering individual investors the opportunity to own a part of a hotel project with the Century Fractional Ownership Program. This allows investors to purchase a share with Century Acqua Lifestyle Corporation at Novotel Suites Manila. Besides annual rental income, investors can benefit from customised luxury vacations at multiple destinations worldwide, as well as hassle-free property management, according to the firm.

Soaring 41-storeys, Novotel Suites Manila will bring an international branded hotel experience with exceptional service and excellent amenities a bridge away from the Makati central business district.

Source: www.exclusivecenturypremiere.com

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

EXCLUSIVE: The man looking after the liquidation of the British company Ecohouse Developments Limited has admitted to being frustrated, and that his investigations into the collapse of the company are “fraught with difficulties.”

Speaking exclusively to PropertyGuru Group from London David Chubb, partner of the company appointed by its creditors, PricewaterhouseCoopers LLC, explained that when he was appointed to handle the affairs of the British company, it was in conjunction with CPC Worldwide Limited who were coordinating an investigation of the Escrow agent. We needed ensure that if information was required to assist the investigation, there was a liquidator in place who could assist, he said.

“The lack of funding necessitated that the role of the liquidator would be very limited, and it was not the intention that we would lead an investigation but that is what we are now doing.”

Chubb was appointed in January 2015 it was on the understanding that creditors would be raising funds for his investigations. That has not happened to the extent needed, he said.

“How much is raised will influence what can be done,” he added.

Almost all Southeast Asian investors in the Brazilian social housing development have contracts with the Brazil company, which Chubb is not handling, and which itself is believed to still be the subject of a federal police investigation.

Chubb has had almost no contact with that company, although his team includes a Brazilian lawyer with knowledge of the South American operation on his creditors committee, and therefore can provide the connectivity needed with Brazil

His pressing mission is to gain entry and investigate the ESCROW agents that handled transactions in the United Kingdom.

“It’s taken longer than I would have liked but I am hopeful I will be able to gain the access I need relatively soon,” he added.

In his discussion with the single remaining company director, he was not provided with any details of the business plan or financial projections, and that raises questions about the viability of the schemes.

Chubb added that one other company, EcoHouse Group Developments Limited is also in liquidation but it being handled by the Government’s Official Receiver as it appears there is no money in that company. That company did not have any direct involvement with investors so is of limited interest.

PropertyGuru Group understands that more than 1,200 EcoHouse investments were sold in Southeast Asia alone including Singapore, Malaysia and Thailand, and in addition to sales in other parts of the world including Hong Kong, China, the Middle East, Europe, the United Kingdom and North America the number could be as high as 1,500 individual investments.

They were lured by promises of returns of, in some cases, more than 20 percent with 12 months along with the return of their capital. Many investors are known to have joined together to invest in one of the $S48,000 social housing homes under the Minha Casa Minha Vida Brazilian government project.

Chubb concluded by adding that his only concern is with the British companies, and he can only deal with enquiries from creditors relating to those companies – and not creditors who have contracts with companies in Brazil.

Investors from Southeast Asia are urged to check which company their sales and purchase contracts are with prior to attempting to contact any legal company currently handling legal affairs.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

An Australian developer has shed light on what could be the future of apartment living with a forward-thinking design for his latest residential development.

Award-winning Sydney-based developer Crown Group will challenge conventional ideas of light and space within residential developments with its AU$575 million, 20-storey development, Crown Green Square, will start construction this year. Sales will start in August.

Designed by Koichi Takada Architects, the luxury 401-apartment development was devised with future residents in mind and features a number of ground- breaking design elements.

One of its most striking features is the building’s unique looped shape; along with a void in its north-facing façade allow natural light to penetrate a central landscaped plaza and apartment balconies.

A tiered apartment structure on the development’s south side – complete with cascading external gardens – will provide year-round daylight to south-facing apartments, while a northern-side lounge and function room, The Sky Lounge, will capture northern views and light from the north.

At its heart, Crown Green Square’s 1,180 sqm open-air plaza features mounded gardens, trees and outdoor bench seats skirted by retail outlets, restaurants and cafés.

Crown Group’s Chief Executive Officer, Iwan Sunito, said Crown Green Square would take apartment living to the next level, and his company has already received hundreds of expressions of interest for the development.

“Our vision for Crown Green Square is to bring the future into the present,” Sunito said.

The design – featuring custom-made, floor-to-ceiling glass windows and a spectacular rooftop terrace – picked up one of the state’s most prestigious industry design awards the 2014 Urban Development Institute of Australia (UDIA) NSW Best Concept Design.

“This ground-breaking development has attracted the attention of the world’s architectural community and is fast becoming known across the globe,” Sunito added.

In addition to its 401 apartments, the mixed-use development will include 30 retail and commercial spaces, a ground-floor conference centre, an infinity-edge pool, spa, gym, music rooms, theatre and concierge. It is expected to complete construction by late 2019.

A landmark site within the new Green Square Town Centre, Crown Green Square was a chance to start with a blank canvas and strive to create something new and exciting, according to Japanese-born architect Koichi Takada who is known for his cutting-edge designs.

“Unlike other new developments which are surrounded by a well-established town centre, Crown Green Square is an opportunity to showcase the future of Sydney. Our design for Crown Green Square is fluid and futuristic; inside and out.

“The final design included significant consideration of public benefit and the future needs of the area with the inclusion of a central public plaza and a smooth transition from the private space to the public domain,” he said.

“Crown Green Square is about future living,” Takada added.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

How would you like to live on your own pristine undeveloped, uninhabited island in the Mamanuca Island Group, the heart of Fiji’s premier tourism sector, 36 km to the west of Nadi in Fiji?

Now you can. For the right price of course, as Knight Frank New Zealand has been appointed to market the property for sale by Deadline Private Treaty, closing July 31, 2015.

Taking approximately 10 minutes by helicopter from Nadi Airport, Yadua Island comprises 10.9791 hectares of native leasehold island, with the highest point approximately 60 metres above sea level.

It is roughly circular in shape, with a surrounding coral reef encapsulating a marine protected reserve protecting sea life and the surrounding coral reef.

Located at the southern end of the island is a white sandy beach with uninterrupted views to the Mamanuca’s. At the top of the island rests the remains of a volcanic crater, rich in native bush and vegetation. There is consent to erect a jetty, and the surrounding reef area has a foreshore lease.

Yadua Island offers potential to develop into a boutique resort or a standalone residential development for private occupation. Plans are already in existence for over-water and island-based bures.

The overall Mamanuca and the Yasawa Islands are well-served by regular ferry services and also helicopter/fixed wing during daylight hours.

Rick Kermode, Resort Island Specialist at Knight Frank New Zealand, said: “This is an exceptional opportunity for individuals or developers. It is one of the very few islands left to purchase in the heart of Fiji’s main tourism sector.

“Surrounded by existing successful resorts and well serviced by regular ferry services, this island can be a private or exclusive residence or boutique resort. The island is also elevated with a solid rock core and base which will help resist rising oceans and storm damage in the future.

“A fantastic island in a superb location.”

Allen Beagley, National Director of Hotels at Knight Frank New Zealand, added: “This is a rare opportunity to purchase a pristine undeveloped island in close proximity to Nadi International Airport, and take advantage of strengthening tourism market in Fiji.”

A video of the island is available to watch.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Global mainstream residential house prices increased by just 0.3 percent in the 12 months ending March 2015, according to the newly released Knight Frank Global House Price Index.

Despite cooling measures, Hong Kong leads the rankings (up 19 percent year-on-year), due to tight supply pushing up mainstream prices.

The weakest-performing world region is now Russia & CIS with prices down 2.3 percent on average year-on-year. Seven of the top ten countries ranked by annual house price growth are now in Europe

Ukraine, Cyprus and China occupy the bottom rankings for annual price growth, falling 15.5 percent, 8.2 percent and 6.4 percent respectively.

Kate Everett-Allen, Head of International Residential Research for Knight Frank, said: “Around 75 percent of countries tracked by the index recorded flat or positive annual price growth in Q1 2015; three years earlier this figure was closer to 47 percent.”

Th is was the weakest performance of the Global House Price index for three years. Weighted by a country’s GDP, the index ensures countries such as China and the U.S. have a greater influence than much smaller economies such as Jersey and Malta.

With some of the larger economies such as Japan, France and crucially China all experiencing housing market slowdowns, this is masking the fact that overall we are seeing more sustainable growth amongst a larger number of countries, according to Knight Frank.

The Knight Frank Global House Price Index, established in 2006, allows investors and developers to monitor and compare the performance of mainstream residential markets across the world.

The Index is published on a quarterly basis using official government statistics or central bank data where available. The index’s overall performance is weighted by GDP, and the latest quarter’s data is provisional pending the release of all the countries’ results.

Bangkok is not included in the survey due to the lack of verifiable and independent data.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Property investment firm IP Global has released its view on where overseas property investors should be setting their sights for the next few months, based on its own research and investment activities.

In its Global Real Estate Outlook report, it noted how Tokyo has been attracting growing interest from Southeast Asian property investors looking to benefit from the strong rental market and depreciating yen.

Last week the Japanese yen reached a 13 year low against the US dollar, sliding to 124.92 per US$, its weakest level since May 2002. The Japanese yen also continues to fall to its lowest level against the Singapore dollar. One Singapore dollar equalled about 68 yen two years ago. It now equates to about 92 yen, an increase of more than 35 percent, but Singaporeans are not the only ones benefitting.

Buyers from throughout the region are also benefiting from cheaper property assets and soaring rental yields, the company said. Average apartment prices in Tokyo have seen seven months of consecutive growth up to March, particularly in the city centre. The rental average in Tokyo’s five wards in the centre rose 2.9 percent year-on-year since 2008.

The expected impact of the 2020 Summer Olympics is also pushing up prices as President Abe invests in major improvements in public infrastructure. UBS has recently projected a direct effect of YEN 3 trillion from the Olympics, and an additional benefit of YEN 10 trillion to YEN 23 trillio from infrastructure upgrades.

Alex Bellingham, Director and Head of Singapore at IP Global, said: “Tokyo has never been a more compelling case for property investors with the yen at a 13-year historic low, and some real pockets of value available in the city’s wards.”

Property demand is on the rise as more Japanese come to settle in Tokyo from rural areas outside the city. The population is expected to increase significantly up to 2030, with occupancy levels in Tokyo’s 23 wards already between 94 percent and 96% percent.

Bellingham added: “With confidence returning to the market, we are now seeing developers committing to building more apartment blocks in the capital. Among all the apartments that are scheduled to be completed from 2015 and onwards, over half are within Tokyo’s central 23 wards.

“Abenomics has clearly been positive for real estate investment, leading to better liquidity, deregulation in urban development and lower property taxes for investors looking to enter the market. The message from the government is that Japan is very much open for business. Many foreign and local banks are also easing lending to foreign investors and opening more doors into Japanese property.”

IP Global’s latest look at the world’s property markets analyses and rates the cities it is currently focusing its research and investment resources.

Source: www.ipglobal-ltd.com

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

In what is the first initiative of its kind in Thailand, one property developer has joined forces with Thailand Elite to offer a 20-year visa for purchases at its Pattaya condominium.

Purchasers at Kingdom Property’s Pattaya Southpoint development will be entitled to a 20-year visa, which amounts to five-year multiple-entry visa that is renewable every four years.

The visa will entitle its holders to benefits that include fast-track immigration clearance, assistance with driving licences, discounts and a bilingual helpline.

Nigel Cornick, Chief Executive Officer of Kingdom Property (pictured), said: “The long-stay solution will overcome many of the barriers that we see when selling our properties overseas. Generally unless you have a business visa, retirement visa or marriage visa, you are not permitted to stay for any length of time.

“This exciting partnership is akin to Malaysia’s My Second Home (MM2H) program and has massive potential.”

The visa will come as part of the purchase of a unit at Southpoint ans the owner can sell the unit and the visa together, if he or she so wishes.

“The target demographic for this initiative is very wide,” added Cornick.

The Thailand property-with-visa initiative is only applicable to Kingdom’s Southpoint project now, but given the possible impact on overseas buyers, it may not be too long before other Thailand property developers adopt similar initiatives for their developments.

Thailand Elite is 100 percent owned by The Tourism Authority of Thailand, which, in turn, is under the control of the Thai government.

Cornick added: “The fact Thailand Elite is working with Kingdom Property is a sign of confidence in itself.

“Ultimately this initiative will make Thailand property far more attractive to overseas property buyers,” he concluded.

Southpoint Pattaya is a two-tower freehold condominium in Pratumnak. It boasts 655 units ranging in size from 30 sqm to 97 sqm. Completion will be in the second quarter of next year.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Israel may not be top of the list for many overseas property investors from Southeast Asia, but there are some good reasons why it should be under consideration.

One project, The Meier-on-Rothschild Tower, is known as the ‘One Hyde Park’ of Israel and has released three penthouses for a combined £50 million. Having already sold 85 percent of apartments within the tower, it achieved record total sales in excess of £165 million.

Located in the heart of Tel Aviv, buyers and investors have been attracted to the ‘white city’ by its sprawling golden beaches, tree lined streets, year-round warm climate and Mediterranean ambience.

Here’s why investors from Southeast Asia should be considering an investment in this part of the world.

Yigal Zemah, the Chief Executive Officer of Berggruen Residential, said: “Second only to Silicon Valley in the technology sector, Tel Aviv is home to a number of the leading technology firms, including Google, IBM and Microsoft, which attracts visitors from all across the world.

“Due to their prominence in this sector, businessman and delegates from Singapore, China and Japan visit Te Aviv regularly, with many travelling on lengthy secondments.
“The Meier-on-Rothschild Tower is the perfect residential base for them as it is located within the main business district on one of the most popular boulevards in the city.”

Developed by Berggruen Residential and designed by Pritzker prize-winning international architect Richard Meier, the iconic 42-storey Meier-on-Rothschild Tower has attracted a multitude of wealthy purchasers, with five apartments recently sold at a combined £8 million. Buoyed by a strong property and tourism market, Tel Aviv attracts over 16 million visitors annually.

Tel Aviv’s prime residential market has grown by 75.4 percent in the past five years, as international buyers are attracted to warmer climates and good potential investment returns, with luxury developments, such as the Meier-on-Rothschild Tower, proving popular.

As the business and financial centre of Israel, Tel Aviv attracts a multitude of national and international investment, which has led new-build properties to be highly popular, as investors look to be close to business interests.

Currently, Israel has the highest density of tech start-ups in the world, which attracts more venture capital dollars per-capita than any other country. This status has attracted a number of global technology companies, with Intel employing almost 10,000 people in Israel, as well as Google, IBM and Microsoft all having Research and Development centres in the country.

Israel also boasts a high number of high net-worth nationals, including one of the regions only female billionaires, Shari Arison, who also fuel the Tel Aviv property market, as they flock to the multicultural commercial and leisure hub.

Forbes magazine recently reported that Israel boasts 18 billionaires, with a combined net worth of US$51.75 billion, placing them as the second highest contributor to the Middle Eastern billionaire list.

Overall, Israel contributes five of the top 10 net worth billionaires in the Middle East. Israel also has a large amount of millionaires, in relation to the countries size, with over 11,000 millionaires.

According to Zemah investment in Tel Aviv property will continue to grow.

He said: “The Tel Aviv market is booming as it is the hub for culture and business and it is by the sea. The demand comes from both local buyers and international buyers who want to live in Tel Aviv as they second home.

“The supply for high-end housing is scarce since it is very hard to find a prime location plots and even harder to build high quality towers.

“With nine months of warm weather, the climate is a major attraction, as well as the quality of luxury developments across the city.

“Our vision for the tower is to develop one of Israel’s most luxurious super-prime residential developments to provide homes – for national and multi-national buyers.

“We have had amazing sales successes, with only a few apartments and three of the luxury penthouses remaining.”

www.meier.co.il

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

With the Australian Treasury currently investigating 195 cases involving possible property law infringements, overseas buyers and investors need to ensure their investment complies with all current law and legislation.

Whilst declining to comment specifically on the 195 individual cases, a spokesperson from the Australian Treasury in a statement welcomed PropertyGuru Group’s interest to educate investors Southeast Asia.

The spokesperson confirmed: “Under Australia’s foreign investment framework, foreign persons must seek approval from the Government before purchasing residential real estate in Australia. Non-resident foreign persons are prohibited from buying existing dwellings in Australia.

“Non-residents seeking to invest in residential real estate can only do so by adding to housing supply and construction activity (for example, by purchasing new housing or developing vacant land).”

The spokesperson confirmed that a temporary resident is a person who is residing in Australia and holds a temporary visa that permits them to stay in Australia for a continuous period of more than 12 months (regardless of how long remains on the visa). The person may also have submitted an application for permanent residency and holds a bridging visa that permits them to stay in Australia until that application has been finalised.

“Temporary residents are allowed to buy one established house to use as their residence while they live in Australia, but this must be sold when they leave. Temporary residents cannot buy established dwellings as investment properties, but they are allowed to build or buy new houses.”

The spokesperson added that further information on the foreign investment rules is provided in Australia’s Foreign Investment Policy here.

On May 2 this year, the Australian Government announced changes to strengthen the foreign investment framework. As part of the changes, the Australian Taxation Office (ATO) will be responsible for the residential real estate functions of the foreign investment framework – including audit, compliance and enforcement activities.

The Government announced a reduced penalty period for foreign investors who voluntarily disclose possible breaches of Australia’s foreign investment rules for residential real estate.

The disclosure period is effective from May 2 and ends on November 30, 2015.

Depending on individual circumstances, investors who voluntarily come forward may be given twelve months to divest, rather than a shorter period determined by the Treasurer, and may not be referred to the Commonwealth Director of Public Prosecutions for criminal prosecution.

More details on Australian foreign buying property investment compliance from here.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

The unprecedented uncertainty surrounding last month’s General Election in the United Kingdom saw a stifling of house price growth across London, with the rate of house price growth at less than 4 percent, compared with the 9.6 percent increase seen in 2014.

The emergence of the capital as a political scapegoat, with potential rent caps and a ‘Mansion Tax’ being discussed, contributed to the sense that London households would bear the brunt of any tax changes. However both issues have now subsided following the surprise majority win by the Conservatives, according to international real estate consultants Cluttons.

Despite this, the damage done to domestic and international buyers’ confidence was reflected in a sharp tailing off in demand during the first quarter of 2015, with both vendors withdrawing properties and buyers adopting a ‘wait and see’ approach.

Cluttons’ International Research and Business Development Manager Faisal Durrani explained: “There is no doubt that the results of the General Election have helped to re-inject confidence into the market that had receded early on this year.

“The outlook for the London housing market has stabilised, while buyers and vendors have returned to the market following a conspicuous absence of activity.

“Our outlook for the rest of the year is for increased stability in the market and a return to a more normal state of activity.”

Despite the Mortgage Market Review (MMR) contributing to a 16 percent year-on-year dip in home purchase loans in Greater London to March 2015, affordability appears to be improving slightly, with the average loan size dipping to 3.86 times annual income in the first quarter of 2015.

Risks remain on the international front, however.

Durrani continued: “International risks, such as the threat of another Scottish referendum, a disorderly Greek exit from the European Union and a potential Brexit (a British exit from the European Union) mean that the market has moved from a situation of having several unknown unknowns to being left with a handful of known unknowns.

“A Brexit remains the biggest threat as the impact on the economy is the biggest unknown at this stage.”

Cluttons forecasts modest Central London house price growth in 2015 of between 2 percent and 3 percent, before accelerating to nearly 5 percent in 2016 and stabilising at around 4 percent per annum between 2017 and 2019.

The real estate firm expect this level of growth to deliver cumulative capital value appreciation of almost 18 percent over the next five years.

The prospects for the prime Central London rental market are stable, it noted, with average growth of 4 percent per annum forecast for the next five years.

Cluttons explained that affordability and the desire to purchase remain key challenges for the capital’s rental market and while supply levels are rising, the strong rate of job creation in London will help in absorption rates.

Durrani added: “The more subdued growth forecast by a number of factors, but the propensity of tenants to show less geographic loyalty now means that households are not put off by the idea of moving out of the prime core in search of lower rents.

“The key driver of course for this behaviour is the desire to purchase.

“The breach of affordability thresholds now means that the rippling out of buyer activity from the prime core markets has meant that Greater London boroughs, such as Newham, Lewisham and Enfield, have all emerged as the capital’s three best performing markets over the last 12-months according to data from the Land Registry.

Quick Central London Property Facts

• Average prime Central London house price is Q1: £2.3 million
• Average weekly prime Central London rent: £1,100
• Cumulative capital value growth for prime Central London residential till 2019: 18.3%
• Cumulative rental value growth for prime Central London residential till 2019: 19.5%

Source: www.cluttons.com

To read the entire Cluttons Summer Research Residential Market Outlook report for Central London property click here.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Europe’s billionaires are enjoying a “new golden age” not seen since the super-rich of the Victorian era.

Each are worth £2billion, and their wealth has risen over the last year by 11.9 percent however, the cost of buying their private yachts has risen by just 6.5 percent, their super prime European homes by just 3.9 percent, their staff costs by 3 percent and their travel costs by 2.9 percent.

Europe’s billionaires typically have four homes, and London has increased its dominance as Europe’s top address for billionaires, with more than 140 now having a home in the capital.

On average this would be a £21.4million mansion, with the other three locations within a billionaire’s European property portfolio consisting of an £18.2million holiday home on the French Riviera, a £10.5million Tuscany estate and a £4.4million villa in the Greek islands.

These are just some of the findings from the latest Ultra Prime Barometer survey which looks across Western Europe at ultra-prime property values, billionaire lifestyles and billionaire property assets, produced annually by super prime specialists Beauchamp Estates in conjunction with market intelligence group Dataloft.

The annual survey uses property data and local market intelligence from Beauchamp Estates European office network and draws on information from Lonres and billionaire research from Wealth X/UBS Bank.

The latest survey revealed there are now 2,325 billionaires globally, worth £4.78trillion, up 7 percent on the previous survey. Of these, 775 billionaires worth £1.55trillion, live in Europe (up from 766 last year), more than any other region of the world. The average billionaire is now worth £2billion (up from £1.79billion at the time of the last survey), is aged 63 (93 percent are between 45-years-old and 75-years-old) and 89 percent are married with two children and a core “family unit” of nine close relatives.

The research discovered the average billionaire now invests £105million (5.1 percent) of their overall wealth in real estate, of which £62million (3 percent) is allocated as a budget for personal end-use homes, with the balance invested in rental or commercial properties.

Rather than simply residing in a city, coastal resort or rural location billionaires prefer what Beauchamp Estates describe as “luxury destinations”, where luxury homes are close to luxury shops, restaurants and leisure facilities. This is because whilst billionaires tend to lead busy and stressful work lives, at home they seek stress-free habitats where they can relax and be “pampered”.

The super-rich also tend to choose addresses where their friends reside.

The average billionaire has four homes in Europe costing them this year £54.5million, well within the £62million they typically allocate. The report found the cost of buying these super-prime homes has risen by 3.9 percent since the last survey was undertaken, but this is still far less than the 11.9 percent rise in billionaire’s overall wealth.

London is Europe’s top billionaire hotspot, with 72 billionaires (worth £116billion) naming the U.K. capital as their primarily base, up from 67 at the time of the last survey. More than 70 other billionaires have a second or third home in London, bringing the total with London residences to over 140 billionaires. This is more than any other city in the world, ahead of New York on 103, Moscow on 85, Hong Kong on 82, Paris on 33, Geneva on 23 and Madrid on 21.

Of the 72 billionaires whose primary base in London, 53 percent were born outside of the U.K.; 8 percent are female and 78 percent have self-made rather than inherited fortunes.

London’s billionaire residents enjoy sailing in the Mediterranean, with 32 percent owning or choosing to rent a super-yacht, often moored close to their villa.

The survey found that since most billionaires tend to live close to their immediate family (typically nine core members) a billionaire buying a home in London can potentially result in additional luxury homes bought in the city. These are for the use of adult children, other close relatives and staff, so a billionaire buying in a location can have a significant “added value” effect on the local luxury property market.

The Ultra Prime Barometer survey reveals that entering billionaire territory in London now has an entry level of £10million or more, with their typical home in the capital being in one of London’s six best addresses: Mayfair, Knightsbridge, Belgravia, St Johns Wood/Regents Park/Hampstead, St James’s and Holland Park.

The report highlights that a Mayfair mansion now costs £21.4million whilst one in St John’s Wood typically costs £17.6million.

Gary Hersham, of Beauchamp Estates observed: “Typically the rich don’t really look outside of these six addresses, and elsewhere the number of really super-rich drops dramatically.”

He noted that the top-end market for homes in London is polarised between those buying unmodernised homes to “do up” and those buying luxury “turn-key” assets.

In terms of price per square foot comparisons, London generally remains the most expensive location in Europe for buying a home, with property in Mayfair commanding values of circa £3,288 per sqft, as compared to £2,649 per sqft on the French Riviera, £1,073 per sqft in Tuscany and, believe it or not, just £581 per sqft in Mykonos.

Because buyers get substantially more space for their money in the Mediterranean compared to London, top European locations with easy access to luxury shops, hotels and leisure facilities remain extremely popular with super-rich buyers. Cannes, for example, bristles with many luxury boutiques and fine hotels, making the Riviera an extremely popular location.

Likewise parts of Tuscany, especially Forte di Marmi, are extremely popular with the super-rich, because it too has a plethora of luxury boutiques, antique shops and hotels.

Amongst the European beachfront, island and rural-estate holiday resorts, the French Riviera is the top property hotspot for billionaires with an estimated 46 having homes in the region (up from 39 at the time of the last survey), with other popular locations such as Tuscany, 16, Tel Aviv/Israel waterfront 14, and Greece and the Greek islands with 11 billionaires.

Beauchamp Estates highlighted that for pan-European billionaire purchasers, currency fluctuations play a large role in buyer’s “purchasing power”, so a U.K. based buyer purchasing a luxury home on the French Riviera currently will pay 15.5 percent less per sq ft than a year ago. Likewise they would pay 3.8 percent less per sq ft in Tuscany and 5.2 percent less in the Greek Islands.

In addition, Beauchamp Estates revealed that country specific property taxes and purchasing costs in Europe remain relatively low on an international comparison. For example, last year’s U.K. Stamp Duty changes in London mean that the average cost of purchasing a £10million home has resulted in purchase costs rising from 7.6 percent to 11.8 percent of the asking price. Given the overall 11.9 percent annual rise in billionaire wealth, the overall changes are unlikely to have any significant impact on billionaire buying patterns.

Property taxes and purchase costs in all four of the European billionaire hotspots remain below 14 percent of the asking price and on the French Riviera and the Greek Islands are as low as 6.9 percent and 8 percent respectively.

Hersham added: “As our report reveals, the world’s billionaires have become even richer over the last 12 months.

“The rise in billionaires is why currently there are now around half a dozen palatial private homes, each providing over 30,000 sq ft of living space, in the development pipeline across Prime Central London.

“London commentators often forget that in Russia, the Ukraine and Middle East, the homes of the super-rich are massive compared to traditional London homes. Palatial properties in places like Ukraine, Qatar and Saudi Arabia can be up to 150,000 sq ft in size so an 8,000 sq ft London townhouse is like a broom cupboard when compared to super-rich palaces elsewhere on the globe.

“This is why some adroit super-rich vendors are creating a new level in the London property market and private palaces that are a size level above anything currently for sale in the marketplace. They know that like a coveted painting the rarity value and quality of such a property will ensure that it holds and increases in value. There will always be super-rich buyers available for truly unique trophy mansions at this top 1 percent of the London housing market.”

Penelope Court, Partner at Beauchamp Estates, said: “We advise UHNWI buying homes in London and around the Mediterranean to set aside budgets of typically £55million to acquire the right properties.

“Most UHNWI buying in Western Europe see having an ultra-prime home in Prime Central London and on the French Riviera as “must have” badges, and this year this will cost them £40million.

“Others then decide they also want a Tuscan estate and a residence on the Greek islands which adds another £15million.”

Beauchamp Estates forecasted the billionaire homes bonanza is set to continue.

Over the last five years, the number of billionaires around the world has been growing at a rate of over 7 percent per annum, so by 2020 at the current rate of growth, there could potentially be over 3,870 billionaires around the world.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

A three-bedroom Victorian terraced property in the Camperdown area of inner Sydney, Australia, has just hit the market for the first time since 1956, when it was sold to the grandfather of the current owner for £1,000.

Located adjacent to the picturesque Camperdown Oval, the terrace is expected to sell at auction for AUD$1.6 million on June 27, according to selling agent, Ed Tancred, a real estate agent with the Raine & Horne agency in Petersham.

“It will be interesting to see what a £1,000 investment in 1956 will be worth 60 years later, without the need for any complicated modelling from an actuary attached to a merchant bank.

“The vendor sold the neighbouring terrace 13-years-ago for about AUD$311,000.

“No matter what the final outcome of the auction, it’s sure to highlight the value of owning a quality, growth asset in a premier inner Sydney location for a decent period of time.”

The sale will also demonstrate the continuing robust demand for well-located inner Sydney real estate, with more than 30 enquiries registered with the agency within two hours of the property being listed for sale.

“The home comes with desirable features such as interconnecting living and dining areas, polished timber floorboards and high ceilings,” added Tancred.

“However the clincher for many buyers is the large lockup garage with extra storage. This is a real winner in a suburb such as Camperdown where parking space is being squeezed to the limit.

“The terrace also offers scope for updating and its proximity to the city, Sydney University, the University of Technology, Royal Price Alfred Hospital and the eclectic Newtown shopping precinct is also attracting plenty of owner-occupier and investor attention.”

The property has been consistently tenanted for 13 years and is currently generating a weekly rent of AUD$800 per week, according to the agent.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Lisbon in Portugal is a city of many faces. Known as A Cidade das Sete Colinas (The City of Seven Hills), Rainha do Mar (Queen of the Sea) and A Cidade da Tolerância (The City of Tolerance), it is an intriguing destination that combines an old-world charm with a sleek modern offering.

From the chic shopping streets of the Chiado to the vibrant night life of the Bairro Alto, it is a city with delights hidden around every corner.

Lisbon’s history as a port is an important part of the city’s heritage and still offers a bustling trade today, with cruise ships, pleasure boats and goods vessels docking in the Queen of the Sea’s harbour from all over the world. At present, the dockside is humming with boats participating in the Volvo Ocean Race, ready for the In-Port Race on 6 June 2015, with the leg to Lorient starting the following day.

As well as sailing enthusiasts and tourists, Lisbon is increasingly on the radar of buy-to-let property investors, as Chris White, Founding Director of boutique estate agency Ideal Homes Portugal, revealed.

He said: “Lisbon has long been overlooked for its potential as a rental property investment destination, but the combination of price reductions, heightened demand and competitive yields has led to a surge in investment in the city, particularly among those looking for long-term buy-to-let investments.

“Investors are looking for modern apartment properties that are perfect for professional tenants. The market is all about the added extras right now, with upscale buy-to-let properties experiencing strong demand.”

White cites the example of the Ávila 81 apartments, on Avenida Duque d’Ávila. Located in an upmarket borough of the city, just steps from the Saldanha and the Jardim do Arco do Cego, the high end apartments are close to transport links and schools, as well as a host of retail outlets, restaurants and other amenities.

A typical four-bedroom contemporary apartment in the development offers a host of attractive modern essentials, including a home automation system, under-floor heating in the bathrooms, HVAC system chiller, whirlpools, mirror defrosters, LED lighting, natural stone in the kitchens and bathrooms and a high gloss kitchen complete with AEG appliances. Security doors and intrusion alarms also come as standard and all for under €1 million – prices start at €986,250 for a four bedroom property (and at €560,000 for a two bed).

Many buyers see now as the perfect time to look at Lisbon’s property market. After years of falling prices, values finally began to increase again in 2014 and have risen by 1.81 percent in the year to March 2015 according to data from Statistics Portugal (INE), with an average current price of €1,011 per sqm.

At the same time as prices are rising, the number of properties being built is falling. The Global Property Guide reported: “Dwelling completions continue to plunge in 2014, with completions down by 54 percent year-on-year to 9,429 units.”

With fewer properties on the market as a result, one can reasonably expect that heightened demand will serve to push prices up further. At the same time, the Global Property Guide is reported “moderate to good yields on Lisbon apartments, ranging up to 6.41 percent.”

The lowered prices and potential for healthy returns are drawing in property investors from around the globe.

According to a market report from JLL, foreign investment in Portugal’s property market rose from 45 percent in 2012 to a staggering 70 percent in 2013. Portugal’s tax benefits to foreign buyers are the icing on the cake: the Non-Habitual Residents scheme and the Golden Residence Permit make it an attractive investment destination for buyers both inside and outside of Europe.

A Sydney-based property developer has collected a sought-after industry accolade naming it the nation’s best outdoor project.

Crown Group’s Top Ryde City Living collected the Best Australian Outdoor Project at the 2015 HIA-CSR Australian Housing Awards ceremony last week.

The seven-tower, 653-apartment development features common facilities including a music room, library, media theatre as well as indoor and outdoor function areas.

The HIA-CSR Australian Housing Awards commend outstanding homes, kitchens and bathrooms designed and built by Housing Industry Association (HIA) members.

Renowned for its first-class alfresco areas, Top Ryde City Living includes a 25-metre infinity pool, extensive landscaped gardens, water features, a children’s playground and barbecue zones, set among about 6,000 sqm of outdoor space.

Crown Group Project and Commercial Sales Director Roy Marcellus said that to have the recently completed project selected as the Best Outdoor Project in Australia was a prestigious honour for Crown Group.

He said: “Top Ryde City Living showcased as the Best Outdoor Project in the country is a testament to Crown Group’s signature resort-style living. The development’s stunning landscaped areas and resort-style amenities allow residents to take in the outdoors, relax, exercise or simply watch the world go by. From the sun-drenched viewing platforms with Harbour Bridge views to the infinity pool or the mature tropical gardens, Top Ryde City Living has something for everyone.”

Judged by industry professionals, the awards are a platform to highlight the talents of the nation’s top builders and designers.

When appointing the title, an HIA judge commented: “The project transports visitors from its busy city location to a peaceful Balinese-style resort.”

Winners came from state-based finalists, with awards in 21 separate categories.

More than 600 residents now occupy the resort-style development, positioned on the vantage point above Top Ryde City Shopping Centre with views to the Sydney Harbour Bridge, Blue Mountains and North Shore.

Top Ryde City Living’s earlier accolades include 2014 International Property Award (IPA) Best Residential Development (Australia) award, 2013 Urban Development Institute of Australia (UDIA) High Density Development Award, 2013 UDIA NSW President’s award and Master Builders Association Excellence in Housing award 2013.

Construction of Top Ryde City Living was completed during 2014.

British real estate firm Rescorp Residential is offering for rent a stunning detached Victorian six-bedroom residence in “Millionaire’s Row” in St John’s Wood, London. The price is £6,950 per week.

Situated in the star-studded Avenue Road, the property is ideal for large families looking for a generous living space in a prime London location.

Set behind a gated driveway and featuring a beautiful rear landscaped garden, this luxury residence occupies a prominent position and a wide frontage on this internationally renowned Avenue where rows of multimillion-pound mansions line this distinguished corridor of central London.

Vic Chhabria, Director of Rescorp Residential, told PropertyGuru: “In recent years we have seen an increase in transactions and interest from buyers based in Malaysia, Singapore, Indonesia and Hong Kong.

“The majority opt for off-plan investment opportunities which are aggressively marketed by developers in their respective homelands; however we have been approached by a few ‘hands on’ type of investors looking for something special in prime London.

“As a result we have successfully secured sales of properties at significant price levels in and around St John’s Wood. In most of those cases the purchasers wanted properties that echoed English heritage and this beautiful Victorian house available for rent on Avenue Road is precisely that”.

Chhabria added that this is an exciting opportunity to live in a family house located in St. John’s Wood’s “Millionaire’s Row”.

Regarded as one of London’s most exclusive addresses and coveted by London’s elite, famous residents who have owned homes in this superlative postcode include supermodel Kate Moss, Paul McCartney, Rolling Stones Keith Richards, Sarah Burton and Joan Collins.

Boasting 6,300 sq ft of luxury accommodation across four floors, this stately family home benefits from an excellent balance of accommodation and reception space and is ideal for entertaining.

Chhabria added: “27 Avenue Road is perfectly situated moments away from the open spaces of Regent’s Park and Primrose Hill and a stone’s throw away from St John’s Wood High Street and Baker Street.

“Bus services are immediately on hand and provide excellent links to the West End, with St. John’s Wood (Jubilee Line) and Baker Street Underground stations (Jubilee, Bakerloo, Circle, Hammersmith & City and Metropolitan Lines) within close proximity.

The property is close to famous landmarks such as the former Abbey Road Studios, London Zoo, Lords Cricket ground, as well as the open spaces of Primrose Hill and Regent’s Park.

Source: www.rescorp.co.uk

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

When a government minister says a property bubble has formed it should be something to make you sit up and take notice.

On Monday, Australia’s Treasury Secretary, John Fraser, noted that in Sydney (pictured) and parts of Melbourne were “unequivocally” in the midst of a residential property bubble.

“It does worry me that the very low historical interest rates are encouraging people to perhaps over-invest in housing. I am not just talking about buying housing, but I am talking about investing in housing. You just have to see these renovation shows … to realise something is amiss.”
Australia is seeing historically low interest rates, despite two cuts so far this year by the Reserve Bank of Australia.

Media reports have suggested that if the rest of the Australian economy were experiencing the same inflation, growth and demand that is being experienced by the real estate sector, the economy would be in a more robust position however, recent GDP numbers have been falling and are forecast to continue to head south.

Fraser is not the only voice suggesting a bubble has formed.

Respected journalist and founding editor of the best-selling Australian financial magazine Money, Pam Walkley, wrote along similar lines in her column in the May edition of the magazine.

Walkley, also the former property editor at the Australian Financial Review, added Brisbane to both Sydney and Melbourne in terms of being overvalued, and wrote that Sydney could be as much as 25 percent overvalued currently, citing one leading expert.

Those high prices, she added, will lead to low rental returns for investors, meaning they are solely dependent on the ever-increasing prices to earn long-term capital appreciation returns on their assets.

For current investors this is good news, with house prices predicted to rise by as much as 15 percent more before the end of this year in the three cities.

But the good news may not last forever. Walkley’s column cites Louis Christopher, head of SQM Research, who noted that in 1989 when prices in the Sydney market reached close to 35% overvalued there was a price correcting.

Walkley wrote: “Investors buying now, especially in Sydney and to a lesser degree in Melbourne and Brisbane, need to be very confident that the good times will continue to roll.”

For overseas buyers of Australian property, proper due diligence and a complete understanding of market conditions arguable has never been more important. They need to know exactly what the property they are buying is work in reality, and not in the minds of a developer or real estate agent.

Serious investors will have a good feel for where the property market it is heading, but first-time overseas buyers will be especially vulnerable and should survey the market and gather as much market data as possible before signing on the dotted line.

These are just several voices sounding words of serious caution, but they are influential and knowledgeable voices with facts that need to be understood.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Colliers International has been appointed as sole leasing representative for Sule Square (pictured), a Grade ‘A’ 30,000 sqm office tower in the heart of downtown Yangon, Myanmar.

Commenting on the market in Myanmar in general, Dennis Yeo, Interim Chief Executive Officer of Asia, said: “Colliers is optimistic about this reform-embracing country and was the first international real estate services company to enter the Myanmar market two years ago.

“We believe the ASEAN integration will stimulate the inbound capital, eventually fuelling businesses and increasing our client’s demand for office space. The economy is also witnessing an early stage of expansion, which will drive further growth in various investment sectors.”

Sule Square is due for completion early in 2016 and is being developed by Shangri-La Hotels and Resorts, Asia-Pacific’s leading luxury hotel group with an existing presence in Yangon since 1995.

This modern Grade ‘A’ commercial complex, the first development in Yangon, will offer 15 floors, each covering 2,000 sqm of space.

According to Colliers International Yangon Research and Forecast Q4 2014 report, there is only 38,000 sqm of top-tier office space in Yangon. During 2015 new supply is estimated to reach more than 60,000 sqm, more than twice that of 2014. While many better-quality office options are now underway, there remains an absence of proper international Grade ‘A’ buildings in Yangon, according to the real estate firm.

“Finding office space is a headache for multinational companies looking to set up operations in Myanmar,” said Tony Picon, Managing Director of Colliers International in Myanmar.

“The occupancy rate continued to improve in Q4 2014, albeit at a modest rate of 0.44 percent from the previous quarter.

“On an annual basis demand is high, registering a 9 percent increase in net take-up from 2013’s 26,000 sqm. The entry of new investors, particularly foreign banks and securities companies, will help buoy the take-up rate.”

Citywide monthly average office rental rates ended last year at US$69.17 per sqm, a slight increase from Q3. The forecast direction for the citywide average rent remains upward in 2015, albeit at a more modest rate than witnessed in the past two years.

Colliers asserts that the lack of international-standard office buildings will keep premium rental rates relatively stable.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

The Philippine Central Bank, Bangko Sentral ng Pilipinas (BSP,) has confirmed it plans to make property and real estate information available to the public before the end of this month.

In an email statement issued to PropertyGuru, a spokesperson for the bank said the Residential Real Estate Price Index (RREPI) has been updated to include data from January 2013 until to March 2015.

“The current version of real estate price index which covers areas in the National Capital Region (NCR) is classified into four types of housing units, such as single, duplex, apartments and residential condominium units and is based on construction materials and combined construction materials and building permits.

“The series based on construction materials runs from January 2000 to March 2015, and that based on combined construction materials and building permits covers January 2007 to December 2014.

“Both series should be available to the public before the end of the second quarter,” the spokesperson added.

“At the same time, the BSP is of the view that the current version of the real estate price index, which is based to a large extent on the cost of construction materials, should also be complemented by housing demand indicators, such as value of land and features of residential units such as floor area, number of bedrooms and effective age of housing unit.

“The series should also include areas outside the NCR.

“To this end, the BSP has initiated the groundwork for a comprehensive measure of real estate price index to include such features based on banks’ housing loan applications.”

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Demand from Hong Hong overseas buyers for Thailand property has seen one local real estate agency open a shop dedicated to primarily selling properties from the Kingdom.

Speaking to local media, Terence Chan Cheuk-ming, a partner at Golden Emperor, said: “We used to sell properties via exhibitions, but we noticed that the buying interest in overseas properties from the public was on the rise.

“These people do not prefer to go to property exhibitions, they enjoy visiting street shops and talking to agents, so we decided to open our first retail outlet.”

Chan, who had been helping friends and investors to invest in overseas properties for six years, and Kingston Li, a former executive director at Morgan Stanley Hong Kong, formed the Golden Emperor real estate firm last year.

The shop in the Sheung Wan area highlights more than 20 properties from Thailand, including offerings from Sansiri and Banyan Tree in Bangkok, and developments elsewhere in the Kingdom.
Chan was reported as saying that the growing buying interest in Thailand was mostly triggered by higher rental yields.

He said that Bangkok offers net yields of 5 percent to 7 percent compared with just 2 percent to 3 percent in Hong Kong.

The company also offers property from Australia and the United Kingdom alongside its offerings from Thailand.

Golden Emperor also noted that Thailand property prices had risen only about 24 percent during the past 10 years, which is less than in other key Asian markets such as Hong Kong and Singapore, without citing the source of its claim.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Today’s English FA Cup final between Arsenal and Aston Villa takes place for what is arguably the most famous football cup in the world.

The two teams are no strangers to a cup final day with Arsenal having reached the FA Cup final 18 times, and lifting the cup on 11 of those occasions. Most bookmakers have London’s Arsenal as favourites, however Aston Villa from Birmingham will be confident of an upset, reaching the cup final themselves a reputable 10 times, with a 70 percent winning ratio.

What does this have to do with property, you might ask?

This is the ninth final at the new Wembley Stadium after the demolition and regeneration of the old site. Since then property prices in the London Borough of Brent have increased by 53 percent*, with the average house price in Wembley at £368,944* – substantially higher than the national average of £208,697*.

This is in part due to the rejuvenation of the Wembley area, paired with escalating property prices across the UK over the last 20 years.

The last time Aston Villa made it to an FA Cup Final, it was at the old Wembley Stadium back in 2000 when the average U.K. house cost just £85,000. Although they lost to Chelsea, property prices in Birmingham have enjoyed an increase of 94 percent in the last 15 years, with the average price now £157,942.

Arsenal supremo Arsene Wenger began his job as Arsenal boss in 1996 when the average U.K. house price was a mere £60,000. During that time he has reached the FA Cup Final six times, winning five of them whilst property prices in Islington, the area around Arsenal’s stadium, have risen by a crazy 547 percent.

It is hardly surprising given the London property market is a law unto itself, however considering Birmingham’s accolade as the second city, the property gulf between the two is vast.

At £95,942 the average house price in the B6 postcode, the home address of Villa Park is £456,210 less than the N7 post code and way below the national average. A flat in the Islington area is more than double the national average for a house, costing £459,391. With an average price of £63,585, you could afford seven flats around Villa Park for the price of one in Islington.

The extreme rate of growth in London is evident, with property near the Emirates stadium, home of Arsenal, having increased in value by £27,366 over the last year.

Villa Park can only boast an increase of £1,844 during 2014, making the Emirates a far sounder investment if you are looking to add to your property portfolio.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

After years of gloom, the headlines are suddenly full of news about Spain’s bright future. Economic growth projections have been revised upwards by Fitch Ratings. According to the data reviewed by Fitch, Spain’s growth in Q4 2014 reached 2 percent – higher than that of Germany and out-performing the Eurozone as a whole.

Newton Investment Management has even noted that some analysts are predicting Spain to achieve annual growth of 30% over the coming years, making it the largest economy in Europe.

Even the unemployment rate looks to be headed in the right direction, with April seeing a record fall of 2.7 percent, but for those living and working inside the Spanish economy, is the picture as rosy as the current headlines would seem to imply?

“Well, yes and no,” said Marc Pritchard, Sales and Marketing Director of leading Spanish homebuilder Taylor Wimpey Espana.

“Unemployment has fallen sharply, but still stood at 23.8 percent for the first quarter of the year – so that’s more than one in five people who want to work yet can’t. It’s a stark figure, but actually there does seem to be a sense that the country has turned the corner, certainly among those who run businesses here.

“Economic recovery from a crash as spectacular as those that happened around the globe during the 2007/8 financial crisis is a long and slow process, but it looks like Spain now has the building blocks that it needs in place in order to expand and achieve stability once more.

“It’s a country on the brink of great things – we’re not quite there yet, but we’re certainly headed in the right direction.”

Such a position creates a wealth of opportunities for investors and in particular for property investors, who have watched as Spain’s prices dropped to an average of 40 percent below pre-crisis values, waiting for the perfect moment to step in and snap up bargains.

The PERE Real Estate Investment in Spain and Southern Europe’s opening statement says it all.

“The Spanish economy is growing at its fastest pace since 2008. With unemployment falling, consumer spending increasing and property prices on average 40 percent below what they were before the start of the crisis, 2015 is set to be a pivotal year for Spain’s property markets.”

Tourism and tourist properties, from hotels to second homes, are a core component of the Spanish market and strongly reflective of visitors’ confidence in what Spain has to offer. According to the Minister for Industry, tourism-based employment has posted the highest figures on record every month since May 2014.

“Visitors are back in their droves,” confirmed Pritchard.

“We’ve noticed a real peak in those looking to buy a second home in Spain and Mallorca in particular is attracting a lot of interest right now.”

Taylor Wimpey Espana knows the island’s property market well. Their developments there range from key-ready apartments at Cala Magrana III for €230,000, to exclusive frontline townhouses for €560,000 at Cala Magrana Mar.

Both sites offer idyllic locations close to some of the island’s best beaches, as well as featuring the signature Taylor Wimpey Espana combination of outside terraces, communal grounds and well-proportioned swimming pools.

So are Spain’s hard times firmly in the past?

“Not yet, but we’re getting there,” concluded Pritchard.

“Rebuilding a stable and prosperous economy isn’t easy but we are persevering and Spain can finally see a much brighter future on the not-too-distant horizon.”

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Award-winning Thai real estate firm Sincere Real Estate will be holding its 10th international property exhibition and seminar in Bangkok this weekend, highlighting high-yielding property investments from around the world.

The event, on Saturday, May 30, at the Sofitel Bangkok Sukhumvit, 3rd floor, Inspiration Room, will feature two informative speaking sessions. The first session between 11am and 12noon will feature

Chayaphon Hunrungroj, Managing Director of Sincere Group, discussing “How your property investment could make you high return continuously.” Anthony McDonald, Chief Executive Officer of BHM Asia Ltd, who will discuss “Hotel and Resort Strategies and Trends”, will join him.

Between 12noon and 4pm investors can explore property investment options, including properties in United Kingdom such as Grove House, Manchester, (pictured) from Pinnacle Group and the Ferndale Care Home from MBI.

Sincere will also be introducing the Realize condominium development from Japan at this event.

Amornrat Chumrit, Project Director for Sincere Real Estate, told DDproperty.com: “Rhe purpose of the event is to introduce high yield property investments with minimal starting prices to our investors. We want them to have an alternative to investing in Bangkok’s central business district, which is now offering lower yields due to price increases.”

Amornat added that Sincere’s investors in the X2 Hua Hin Oasis project were rewarded with a “Highly Commended” in the Leisure Development section at the recent Asia-Pacific Property Awards.

For more information email: info@sincere.co.th

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

Overseas property buyers and investors have been looking beyond London as they try to look for better returns that the United Kingdom capital is currently offering.

One project that has sold well in Singapore, Hong Kong and China, as well as at home in the U.K., is Grand Central (pictured) in Cambridge by leading house builder Weston Homes. The development of 143 new homes in situated right the heart of Cambridge’s technology and science district.

At least 11 Singapore investors have purchased units at the property, according to data supplied to PropertyGuruGroup, with another 18 buyers coming from Hong Kong and 2 from mainland China.

With a mix of one- and two-bedroom apartments and duplexes and two- and three-bedroom houses, Grand Central is set to be Cambridge’s most desirable address due to its luxurious finishes, high specification and fantastic location.

Bob Weston, Chief Executive Officer of Weston Homes, said: “Cambridge is a highly desirable University town which has attracted purchasers from around the world for many years.

“The history, lifestyle opportunities and steady market has led to it becoming a hub for science and technology, attracting high level experts in the field and further enhancing its appeal for investment.

“We have already received a high level of interest from those looking to purchase a home at Grand Central.

“The scheme is in an ideal location for professionals, students and commuters into London, and is situated right next to the Cambridge Leisure Park which provides an array of leisure facilities and restaurants.”

Cambridge, about an hour to the north of London by car, is home to one of the world’s finest Universities and, in recent years, has transformed into a scientific and technological hub. It is now home to Microsoft, Research UK, Cancer Research UK and MRC. In addition, pharmaceutical giant, AstraZeneca will be moving its £330 million headquarters to the area in 2016.

Cambridge, and the surrounding area, is home to more than 1,500 technology-based companies employing 57,000 people, and is the fastest-growing sector in Cambridge with giants such as Amazon, Spotify and Apple also expanding in the city.

Grand Central is set in 2.92 acres of grounds across 14 blocks, with a build programme of two years.

The first phase of homes will be completed in early 2016. Apartments will range in size from 548 sq ft to 858 sq ft. Houses will range from 680 sq ft to 983 sq ft.

Prices start from £340,000 for a one-bedroom apartment, £400,000 for a two-bedroom apartment, £425,000 for a two-bedroom house and £540,000 for a three-bedroom house.

Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg