New Reports Names The Philippines as the Strongest Luxury Residential Market in Asia

A November CBRE report noted a lull in Asia’s luxury residential property market in Q3 2011, citing the continual recovery for the USA’s economy and the debate about the state of the Eurozone as factors contributing to the slowdown.

In particular, countries which have seen a rising demand for accommodation in expanding cities and CBDs, have led to a number of international investors searching for properties in China, Hong Kong, Singapore, Vietnam and the Philippines.

In some locations, capital appreciation saw its first decline in 3 years, with the Asia Luxury Residential Property Index weakening by 0.2% in Q3.

Hong Kong saw an 11.3% drop in sales in September, which contributed to a 0.5% fall in luxury residential prices, according to Knight Frank. Hong Kong saw its first decline in property prices since December 2009, with a reported 1.7% decline month on month.

Closely watched by investors, Vietnam’s emerging property market saw a quieter Q3 2011 when compared to the previous quarter, indicating a decrease in property transactions. Property and land prices saw a drop in a number of areas, with housing prices in the incomplete Highway 32 seeing a decline of 15% – 20% in value.

Vietnam’s overall economic outlook remaining negative according to Colliers International, who also recorded an average 2% decline in apartment prices. For those aiming to enter the luxury property sector should note that the country’s future economy is in unstable due to a budget and trade deficit, shortage of capital, high interest rates, inflation, foreign debts and currency depreciation.

The International Monetary Fund (IMF) has warned that China – which has the world’s leading property market – may experience a turbulent future if Beijing does not encourage financial institutions to extend more savings options to households. The country saw a decrease in growth quarter on quarter when compared to the 1st two quarters of 2011, according to Knight Frank.

Interestingly, it appears that the prices of luxury apartment have peaked in Singapore, with the average price per square foot dropping by 2%. Savills reported that super luxury segment decreased by 0.4% in Q3, with the company warning that the sector remains unstable due to poor sales of luxury accommodation for two months in a row.

Weathering better than most other Asian countries, luxury accommodation in the Philippines has remained resilient in Q3 2011, with Colliers International stating that secondary market prices for both CBDs are virtually equal at an average of P106,000 per square metre. On average, capital values have increase by P125,300 per sq. m from the formerly stable rate established throughout the previous 5 consecutive quarters.

Despite the slowing of property values, rental returns in some areas of Asia have increased, with a 1% rise noted in the Asia Luxury Rental Index.

In a conflicting report by Colliers International, Singapore rents saw a drop for the second consecutive quarter. The company reported an average drop in monthly gross rents of 0.7% to $5.74 per sq ft in luxury/super-luxury apartments.

Similarly, the growth of luxury residential prices tapered off significantly in Q3 2011 in Hong Kong, with a mild growth of 0.6% QoQ to HK$19,629 per sq ft as of August 2011.

However the Philippines, and Makati CBD in particular, has seen an increased by 1.6% to P569 per sq m monthly, with Colliers International forecasting that this number will continue to rise to the P600 per sq level in the next 13 months.

Overall the Asian Luxury Property sector, it seems that investors have been more careful in Q3 2011, with shrinking mortgage lending and mounting interest rates affecting demand in many Asian markets. Declining sales in usually strong markets such as Singapore, China and Hong Kong have been received with varied reactions, with certain areas in the Philippines remaining resilient amid the fluctuating world economy.

Factors such as mortgage and lending restrictions have affected the growth of price appreciation in a number of Asian markets, which has had a negative effect of property prices. Economic growth in Asia Pacific slowed in Q2 according to figures reported by CBRE as a direct effect of the impact of natural disasters that occurred earlier in 2011.

Although many external factors have contributed to a decrease in property investment in Asia, the luxury market in the Philippines has remained stable, with locations such as Manila and Makati commanding high rents. Growing CBD and the cities themselves has contributed to strong capital growth, which has now been endorsed by some of the world’s most sought-after brands such as Trump, Paris Hilton and luxury designer brand Versace.

To find out more about luxury property investment in the Philippines, read more on our exclusive Asia Property Blog.. This article, New Reports Names The Philippines as the Strongest Luxury Residential Market in Asia has free reprint rights.

Several Of The Obvious Pros You Will See When You Invest In Real Estate

If you want to invest in property you might well be a little bit nervous about doing so. You may believe that an enormous amount of financial commitment will need to be made on your part, or perhaps that you will require a lot of technical knowledge in order to go about things properly. However, regardless of the work that needs to be put in, a number of great advantages will appear if you do indulge in some property speculation.

The first of these is the cash flow that you would get from the property you invest in. This cash flow will refer to the difference between your income and expenses on the specific property. This can, of course, be both positive and negative, but either way it is all beneficial if it is part of your investment programme.

The appreciation on the value of the property is also a major advantage. There are two types of appreciation – internal and external. External will refer to outside forces that will affect the value of the property. For example, many people will invest in a property because they believe it is situated in an up-and-coming area. Internal appreciation refers to any work that you do yourself on the property in order to raise its value. Either way, appreciation increases the value of the property.

Leverage is important as well and this refers to purchasing the property by borrowing a large percentage of its value. No other type of investment will allow you to take advantage of such a high degree of leverage, and therefore you can easily build a portfolio without investing too much of your own money.

There are also tax advantages associated with property investments as well. There are lots of ways in which you can avoid tax obligations through property investment, and while this is not necessarily your primary objective, it is certainly a perk of the job.

Of course, in addition you will also be able to benefit from the residual nature of your income from the property rather than more linear forms of income. In other words, you will be able to get paid on the property that you own without actually having to do any work for it. This enables you to create income streams that are not only large, but also residual.

Of course, people also claim that property is more enjoyable as an investment process than other forms. This allows you to have a great deal more fun during the process.

Overseas property investment can provide you with a secure financial future and other benefits. You can find the information about how to invest in property easy and fast today!

Invest In Property And Reap Potential Returns

One of the most stable markets that you can put your money in is to invest in property. Many people know this because it has always been the most traditional and surest way that people have made money over the years. It is a simple scheme that may need a large capital investment, yet it is one investment whose value stays up over decades of existence and ownership

Many people may opt to invest in the stock market, because they want to see high returns in a short amount of time. It must be remembered however that people investing in the stock market may also experience high losses depending on how risky the stocks are that they buy.

It is investors who play in the stock market who are the ones who can afford to lose money without feeling the impact of the loss. But for those who want to make more stable investments where they will only see their money grow, to invest in property may be the best guarantee they have to lessen losses.

The best part about investing property is that it may be one of the few things that you can purchase on loan and using money that belongs to other people or banks. All you have to do is come up with a small equity to represent your ownership and interest in the real property, and the property is mortgaged to ensure that you pay off the loan you get to eventually own it.

As the equity, or your real ownership of the property, increases with the number of payments you make, the greater the trust a bank or lending firm will put in you. This is why you can take the loan a step further by getting another loan based on the equity that you have on the house. With this money, you can invest in other things to help your money pot grow even more!

One of the best things about putting your money in property is that you will be sure to get a profit once you decide to sell it. Real property increases in value over time, movable property on the other hand, often decreases in value as can be seen when one buys a car. With use over time, the value lessens dramatically.

If you are looking for a wiser, simpler, and safer way that you can invest your money, then it may be best to take the traditional approach and invest in property. Unlike the stock market, it is stable and offers a bright future in terms of increased profit in future sales. Improving the real property can even cause the property to increase in value, which makes it easier and better to sell in the future so that you can make a decent profit.

When you invest in property, you are taking advantage of today’s reduced prices and low interest rates. Overseas property investment gives additional opportunities for capital appreciation.

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