Hong Kong Real Estate Sector Likely To Continue In Depression till December 2009
Real Estate sectors of the entire Asia-Pacific region are likely to continue in depression till December 2009, and large value is likely to get back in most of the markets by 2010.
Property Markets like Hong Kong and Shanghai are like to direct the path, as per some of the significant findings that came out from a recent report.
It has been a tough sell for property all through the current recession, with transaction volumes nearly 50% down in 2008, compared to 2007. The value of property stocks in the area also gone down for the first time after 2001.
The major concern is whether the sector has bottomed out by now.
Property experts say that they are not sure, however, they consider that what is actually the case is that buoyancy has came back in the market and more and more transactions can be observed in the coming 1 to 1 ½ years and ultimately, that will show the way to a rise in the market.
In the Asia-Pacific, Hong Kong’s office market is expected to be the initial one to attain reasonable value where investors will find prospects across the board more willingly than just definite troubled assets.
Market watchers also advise that protected funding is expected to continue as an issue.
As per the recent report, office rental are also witnessing descending pressures. Moving ahead, the Singapore office rentals will undergo the maximum drop in the region for the year 2009, next will be Hong Kong.
One of the causes for this is the supply of fresh office space that is going to appear on-stream in the coming few years, which it believes will inflict a declining, pressure on both rents and capital values. Recovery for all these markets is only predictable in 2011.
Property Markets like Hong Kong and Shanghai are like to direct the path, as per some of the significant findings that came out from a recent report.
It has been a tough sell for property all through the current recession, with transaction volumes nearly 50% down in 2008, compared to 2007. The value of property stocks in the area also gone down for the first time after 2001.
The major concern is whether the sector has bottomed out by now.
Property experts say that they are not sure, however, they consider that what is actually the case is that buoyancy has came back in the market and more and more transactions can be observed in the coming 1 to 1 ½ years and ultimately, that will show the way to a rise in the market.
In the Asia-Pacific, Hong Kong’s office market is expected to be the initial one to attain reasonable value where investors will find prospects across the board more willingly than just definite troubled assets.
Market watchers also advise that protected funding is expected to continue as an issue.
As per the recent report, office rental are also witnessing descending pressures. Moving ahead, the Singapore office rentals will undergo the maximum drop in the region for the year 2009, next will be Hong Kong.
One of the causes for this is the supply of fresh office space that is going to appear on-stream in the coming few years, which it believes will inflict a declining, pressure on both rents and capital values. Recovery for all these markets is only predictable in 2011.
Labels: capital values, real estate sectors, Singapore office rentals
Posted by Moveandstay
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