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RICS: Sentiment toward Hong Kong Real Estate Shows Signs of Improvement

RICS Global Commercial Property Survey Q3 2009

HONG KONG, Nov. 19 /PRNewswire-Asia/ -- The latest RICS Global Property Survey shows that sentiment in Hong Kong is noticeably more upbeat than the second quarter report both in terms of the lettings environment and investment activity.

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Confidence in the outlook for tenant demand over the next three months moved into positive territory in Hong Kong particularly with a big swing in sentiment for rental expectations. In the second quarter of the year, a net balance of 67% of respondents from Hong Kong expected rents to fall further; by contrast in the latest survey, a net balance of 16% of respondents suggest rents are likely to rise over the next three months.

Similar trends also found in other parts of the world, Peru, Columbia and Brazil also reported positive net balances on rental expectations while South Korea, China, Thailand and India were only moderately negative. Australia, UAE and the UK also saw rental expectations become less negative over the quarter but the weak results from the US and Japan were not far from the lows touched in the second quarter report. Interestingly, a number of European countries including Ireland, France and Spain have the worst readings on the rental outlook.

The mood amongst real estate investors also appears to have perked up according to the survey with capital values expected to increase in a number of countries including Brazil, Hong Kong, South Korea, China and India. This more positive mood has also been reflected in activity indicators with number of investment bidders per property picking up sharply not just in Asia and Latin America but also in a number of European countries. This is consistent with the latest data from Real Capital Analytics (see page 2 of the RICS survey) which shows either a steadying or a modest increase in transaction levels around the globe.

Sentiment towards capital values in the US is, however, still very negative with 53% more surveyors expecting further declines (rather than increases) in the run-up to Christmas. In the UK, the net balance on capital values expectations is still in negative territory although only marginally so and there has been a noticeable increase in transaction activity.

RICS Hong Kong Vice Chairman David Faulkner said, "The rebound in Asian economies is clearly being reflected in the more positive responses to both rental and capital value expectations throughout the region. By way of contrast, the relatively sluggish economic revival through much of Europe and the US is consistent with the more downbeat results for these regions."

"This contrast could become even more pronounced through 2010 as any unwinding of the monetary and fiscal stimulus presents a further challenge to the tentative recoveries being experienced in most western economies."

About the Global Commercial Property Survey

RICS' Global Commercial Property Survey is a quarterly guide to the developing trends in the commercial property investment and occupier market. This edition details market conditions for the 3rd quarter of 2009 based on information collected from leading international real estate organizations and local firms.

If you would like to download the full report, please click at the link below: http://www.ricsasia.org/newsDetail.php?id=116

To view the event photos, please download from the following link : http://creativegp.com/RICS/GPSphotos.zip

About RICS & RICS Asia

RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 122 countries.

The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.

The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: http://www.ricsasia.org .

    Media enquiry, please contact:

     RICS Asia Public Relations Representative
     Ms Belinda Chan / Ms Ava Lau
     Tel:    +852-2372-0090
     Fax:    +852-2372-0490
     Mobile: +852-9379-3045 / +852-9829-2913
     Email:  belinda@creativegp.com / ava@creativegp.com

SOURCE Royal Institution of Chartered Surveyors