Dec. 19 (Bloomberg) -- Singapore's property companies may lag behind Asian real estate developers for a second straight year in 2008 as government limits on speculation cool the housing market.
CapitaLand Ltd., Southeast Asia's largest developer, is suffering its biggest quarterly decline in more than six years after the government raised development taxes by as much as 58 percent. The Singapore Property Equities Index dropped 19 percent so far this quarter, the most since a 35 percent plunge in the third quarter of 2001.
International buyers, who accounted for more than 40 percent of real estate purchases in 2006, bought 38 percent fewer properties last quarter as capital-market gridlock caused by rising U.S. subprime mortgage defaults curbed borrowing worldwide. The supply of new homes for sale next year may almost double by value compared with 2006, weighing on prices, according to CLSA Ltd.
``We can find better propositions elsewhere in the region, where there's more growth and value to be found,'' said Leslie Phang, who helps manage $1 billion at Commonwealth Private Bank in the city. He doesn't own local builders and prefers Hong Kong developer Sun Hung Kai Properties Ltd.
The decline in Singapore's property gauge compares with a 10 percent drop in the Bloomberg Asia Pacific Real Estate Index, which tracks 164 companies. The Bloomberg World Real Estate Index has slipped 8.9 percent this quarter. Singapore's property index climbed 1.3 percent today, the biggest rise since Nov. 29.
Banks Hiring
Singapore's home price index increased 8.3 percent in the three months ended September from the second quarter. That matched the June quarter's pace, the first time the growth rate failed to rise since mid-2005.
Demand for apartments grew this year as banks hired more expatriates. New York-based Morgan Stanley, the No. 2 securities firm by market value, said in February it would open a local prime brokerage office servicing hedge funds. Citigroup Inc., the biggest U.S. bank by assets, followed with its own prime brokerage office in March.
About 19,200 jobs were created in financial services through September this year, government data show. Foreigners accounted for about 43 percent of total purchases in 2006, up from 14 percent in 2005, according to CLSA, the Asian investment-banking arm of Paris-based Credit Agricole SA. Singapore home prices rose 13 percent last year, beating all other Asian markets, according to Global Property Guide, a Manila-based researcher.
The number of foreign purchases fell 38 percent to 2,073 last quarter, from a record high of 3,332 in the three months ended June 30, according to DTZ Singapore, the local unit of DTZ Holdings Plc, a London real-estate brokerage.
`Policy Risk'
The government scrapped a program on Oct. 26 that allowed buyers of planned apartments to pay 10 percent of the asking price and defer the remainder until completion. Builders face higher fees on new developments after the government raised charges by 58 percent for apartment projects and by 42 percent for commercial properties, starting Sept. 1.
``There are still a lot of policy risks in this segment,'' said Daphne Roth, vice president of equity research at ABN Amro Private Banking in Singapore. ``The government doesn't want home prices to go up too much, too quickly and the policy changes introduced so far have already impacted the market.''
CapitaLand has slumped 25 percent in Singapore stock exchange trading during the fourth quarter, set for its biggest quarterly drop since a 47 percent plunge in the three months ended September 2001. It has lost 29 percent after reaching a record high on April 26, even though third-quarter profit more than doubled from a year earlier.
Cheaper Than Peers
City Developments Ltd., controlled by billionaire Kwek Leng Beng, declined 18 percent since the start of this quarter and plunged 23 percent from its all-time high on June 19.
The selloff has left local property shares cheaper than their regional peers. The Singapore Property Index is valued at 11 times earnings, less than a third of its high of 38 times in March 2006. The Bloomberg measure of Asian real-estate stocks is valued at 19 times, while the global index is at 17 times.
Thue Isen, who helps oversee $1 billion at Bankinvest Group in Singapore, including shares of CapitaLand and City Developments, said the decline is a chance to buy local developers, which he finds more attractive than those in Hong Kong and China.
``People's expectations for the property market here have definitely dampened, which justifies some of those declines,'' he said. ``If you look at economic and income growth and new offices starting up, the fundamentals haven't changed that much, so the pullback looks a bit excessive.''
Forecasts Cut
CIMB-GK Research Pte, based in Singapore, cut its price forecasts in a Dec. 10 note. Properties costing at least S$1,200 ($831) a square foot may climb 8 percent in 2008, compared with an earlier forecast of 15 percent. Overall home prices will rise 15 percent from a previous estimate of a 25 percent increase, said Donald Chua, a Singapore-based analyst.
The brokerage, a unit of CIMB Bank Bhd., Malaysia's largest investment bank, also cut its rating on the industry to ``underweight'' from ``overweight,'' citing slowing growth. The firm lowered its recommendation on CapitaLand to ``neutral'' from ``outperform.''
Price increases in other Asian cities continue to accelerate. The cost of Hong Kong's luxury homes jumped 12 percent in the third quarter from the second, the most since 2004, according to Los Angeles-based commercial property broker CB Richard Ellis. Prices in 70 major Chinese cities rose 9.5 percent in October, the fastest since 2005.
Worst Performance
The city-state's real estate benchmark has gained 7.8 percent this year, its worst annual performance since 2002. It jumped 65 percent last year and 39 percent in 2005. The Singapore All Equities Index has increased 20 percent this year.
The Asian property index has risen 28 percent in 2007, after climbing 32 percent and 26 percent in the previous years.
CLSA forecasts that as many as 12,000 new homes under construction could be up for sale in the next year to 18 months in the most expensive residential districts, driving up supply and hurting prices. The ``unprecedented'' inventory is worth S$21 billion, almost twice the S$11 billion invested in real estate in 2006, according to Yew Kiang Wong, a CLSA analyst in Singapore.
Increased regulation and the spread of U.S. subprime mortgage defaults are denting home purchases. The Business Times newspaper reported on Dec. 3 that the value of sales of private properties plunged to S$2.9 billion so far this quarter, less than 20 percent of the S$15.6 billion for the previous three months.
``There's just too much negative news out there right now, with the government regulations and concerns over subprime,'' said Nicole Sze, Singapore-based investment analyst at Bank Julius Baer, which manages $350 billion. ``We're unlikely to see the same kind of broad-based rally that we've had.''

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PETALING JAYA: Berjaya Corp Bhd (BCorp) unit Berjaya Land Bhd (BLand) is expected to secure a huge parcel of land in Hanoi, Vietnam soon for mixed property development with a total gross development value (GDV) of RM8.5bil.

A source close to the deal said BLand's top management was currently in Hanoi preparing to sign the agreement for the proposed acquisition this evening.

“We understand the land is massive, around 1,000 acres, and is located close to BLand's first property development in Hanoi – the 78.32-acre mixed development Thach Ban New City project in Long Bien district,'' he told StarBiz yesterday.

Thach Ban New City, worth a GDV of RM1.73bil, is due for completion in five years.

A local analyst said BLand's acquisition of the land, its second parcel in Hanoi, could arguably propel the company to be the leading Malaysian property investor in the republic.

He said BLand's other planned acquisitions included an integrated 2,185-acre township (with a GDV of RM12bil) and the 20.41-acre Vietnam Financial Centre (GDV RM4.17bil), both of which are located in Ho Chi Minh City; and a gated residential development on 5.23 acres (GDV of RM304mil) in Dong Nai province.

“We believe if the properties are acquired as planned, they would help boost BLand's property portfolio considerably,” he said, adding that the company had also announced plans to acquire several hotels in Vietnam, including the Sheraton Hanoi Hotel.

“Many of these property projects are pending investment licence approval from the Vietnam government soon, which would allow BLand to commence work immediately,” he said.

The analyst said BLand's management had been very aggressive in its negotiations with that country's local authorities in acquiring more land in Vietnam in the past two years.

“This is only the tip of the iceberg as BLand plans to acquire more land in strategic locations,” he added.

At a briefing for analysts and fund manager in Ho Chi Minh City last Thursday, BCorp chairman Tan Sri Vincent Tan said he would deliver on all projects as promised to the Vietnamese authorities.

He also said BLand aimed to be the “biggest Malaysian property investor'' in the republic.

On funding of the acquisitions, Tan said BCorp had sold off several mature properties, including some hotels and irredeemable convertible unsecured loan stocks for RM510mil, to finance some of the company's acquisitions in Vietnam.

A foreign analyst said BLand's move into and continued expansion in the republic had spurred institutional interest in the stock, especially in recent weeks.

“BLand's foray into Vietnam is a positive move that could potentially provide good returns,” she said.

The foreign analyst said institutional players were generally in favour of BLand's decision to dispose of its mature assets to finance property projects in Vietnam.

Nov. 21 (Bloomberg) -- For real estate investors, global markets look brighter than those in the U.S. today. International property prices caught fire three or four years ago, at a time when it wasn't easy for individuals to buy in. Today you can. There are at least 16 retail mutual funds and three exchange-traded funds (ETFs) trained mainly on Europe, Asia and Latin America. Some of them include U.S. properties, others don't.

In the U.S., the funds own shares principally in real estate investment trusts, or REITs, especially equity REITs that operate various types of commercial property -- office buildings, hotels, malls, apartment houses, industrial warehouses and so on. REITs or REIT-like structures are now developing in other countries, too, including Australia, Belgium, Canada, France, Germany, Hong Kong, Italy, Japan, Netherlands, Singapore and the U.K. Where REITs don't exist, the funds buy shares of operating real estate companies.

As diversifiers, REITs and real-estate companies land somewhere between bonds and stocks, providing steady rental income combined with capital gains if the properties rise in value. Often, real estate does well when other parts of the market sag.

Global diversification lowers your risk even more, by exposing you to more than one interest-rate or real-estate cycle. While the U.S. office market appears to be going soft, booming global trade is driving up property prices in international port cities and financial centers.

Broader Market

Private equity is there already. So far this year, 101 real-estate funds have raised $63.9 billion, according to London-based Preqin, a private-equity consultant. Less than half of that money went into the U.S. The rest was divided roughly equally between Europe and the rest of the world.

Internationally, the groundwork is being laid for a much broader, publicly traded property market, says Samuel Lieber, head of the Alpine International Real Estate Equity Fund. ``In 1989, we were hard pressed to invest in 16 countries,'' he says. ``Now we're invested in 28 and looking to invest in 35.''

Lieber singles out Brazil as ``potentially the most interesting market in the world.'' It's newly developing a public real estate market, 30-year mortgages are now available and demand for real estate is strong.

Cohen & Steers, a long-time real-estate specialist, currently offers three funds -- Asia Pacific Realty Shares, International Realty Fund and Global Realty Shares (formerly a U.S. fund that went global in September). Senior Vice President Scott Crowe sees good value in the U.K., a market where real estate stocks trade at substantial discounts. Prices dropped 15 percent (in British pounds) in the first half of 2007, to levels that seem worth buying. He finds prices compelling in continental Europe, too.

Asia Leads

Absolute growth will be higher in Asia, he says, but stock prices are high, too. Roaring growth can't be sustained in those markets if the rest of the world slows down.

Charles Schwab's Global Real Estate Fund launched in May. David Siopack, co-portfolio manager of the fund, says that global investment truly became viable only in the past three years, as more countries developed REIT structures and private operating companies started going public.

Siopack loves Singapore -- a high-growth city state, strategically placed, with the world's busiest port. Its property index jumped 10.2 percent in the second quarter of 2007 while most markets sank. He also likes Hong Kong (up 7.7 percent) and office properties in central Tokyo. Overall, Japanese property prices dropped 6.8 percent in the second quarter, but he sees central Tokyo as ``like midtown Manhattan,'' with rising demand for limited space.

Watch Costs

Looking further afield, he's interested in apartments and office properties in western Canada, where growth is driven by oil-field development.

As usual, you need to watch your expenses when buying a fund. Cohen & Steers is among the priciest, with 1.65 percent in annual costs plus an upfront sales load of 4.5 percent. No-load funds dispense with sales commissions and pare annual costs. For example, Schwab Global Real Estate Fund charges 1.2 percent a year; Alpine costs 1.17 percent; Fidelity International Real Estate costs 0.96 percent.

For the names of more global and international funds, check http://www.investinreits.com .

ETFs include the WisdomTree International Real Estate Fund, and three index funds: Barclays iShares S&P World ex-US Property Index Fund, First Trust FTSE EPRA/NAREIT Global Real Estate Index Fund and State Street's SPDR DJ Wilshire International Real Estate. In this niche, however, managers generally outperform the indexes, according to Mike Kirby, director of research at Green Street Advisors, specialists in REIT consulting.

Taxing Consequences

Your ETF or fund receives dividends from the companies it invests in and passes them on to you. Dividends received from REITs are taxed in your ordinary income bracket. Dividends from other real estate stocks normally get the 15 percent capital- gains rate. Qualified foreign taxes paid are passed through to U.S. investors as tax credits.

U.S. real estate still matters, for its income and relative stability. For investors seeking moderate risk, Ibbotson Associates suggests putting 23.3 percent of your equity into real estate stocks, with the following allocation: 12.1 percent in North America, 7.8 percent in Europe and 3.4 percent in Asia. Raise the Asia percentage, if you're up for higher risks.

Investment in international property is becoming increasingly popular as every international market caters specifically for the individual requirements of its investors. Markets vary enormously; some require high entry financial exposure while achieving excellent returns, while others offer lower financial exposure.

Many factors need to be taken into account when choosing your property investment locations. Currently some Eastern European countries are offering outstanding value for money but the current political and economic situation makes it an unwise investment at this time. We carefully select the locations in which to offer you international investment property. Below you will find a detailed investment research section outlining why each of our international property markets are currently seen as intelligent options for property investment.

The locations below feature unique factors that lend themselves to a particular type of investor. We advise you to take time to look at the investment information or contact us to speak with an advisor who will be glad to help.

International property investment is generally seen as the most reliable source of return on investment today. Large investors often look to add diversity to their international property portfolios by spreading their investments globally over several property markets. The International Property Investment Network (IPIN) was set up to help investors source stable and reliable opportunities in the most investment-friendly areas of the world.

Upcoming Property Events

Malaysia Property Expo (MAPEX 2007)
PWTC, Malaysia
26/10/2007 - 28/10/2007

Investment Opportunities & Market Trends for REITs
JW Marriott Hotel, Kuala Lumpur, Malaysia
12/11/2007 - 13/11/2007

India Property & Investment Opportunities

Currently there is an undersupply of high quality housing and commercial premises in the city centres, making India a viable option for property investment. Many large corporate and IT companies are based in developing cities and large scale quality construction is underway to accommodate these enterprises and their workers. Land investments are therefore also highly lucrative at the present time.

United Arab Emirates Property & Investment Opportunities

Real estate in the UAE attracts high growth rates and excellent rental yields in key locations. Backed by government funded property projects, much of the real estate in the UAE is a safe option as it attracts top developers and constructions companies. As a consequence, properties available for purchase are famous for their extremely high quality.

Vietnam Property & Investment Opportunities

Overseas investment in property in Vietnam is escalating while local affordability is also on the increase. Since various changes to fiscal and real estate investment laws in 2006, property in Vietnam has become an easier option to foreigners and many believe that Vietnam will become the next Thailand as a retirement and holiday home hotspot. Tourist figures are rocketing and new, highly affordable five star golf resorts are currently being built to further boost the property investment market.

International Property Investment Network (IPIN) and Malaysia

The International Property Investment Network has selected Malaysia as one of its chosen locations to offer solid investment opportunities to its members. Why not find out about the many reasons for this in our Malaysia investment research section. Here you will learn why Malaysia is firmly set to offer property investors excellent growth potential.

Why Invest in Malaysia?

As one of Asia’s prime emerging property markets, Malaysia has much to offer worldwide property investors. Natural and economic factors are set to offer fast and significant growth potential in Malaysia.

Natural and Cultural Factors

* Proximity to Australia, Bali and Singapore easily attracts investment and visitors from these countries
* English language is widely spoken, creating ease and transparency in property purchase transactions
* Warm climate with average temperatures of 21 to 30°C, enticing a year-round tourist trade
* Exotic culture and food. A warm and friendly population and peaceful society
* Great sports facilities, including golf, fishing, diving and other water sports
* Stunning palm fringed, golden sandy beaches and beautiful holiday resort areas

Economic Factors

* Property growth of between 15 and 30% per annum
* A surge in economic activity has created high demand for quality commercial and residential property to serve a growing expatriate community
* Government incentives to ease foreign investment in Malaysia, including tax breaks and relaxation of laws governing foreign ownership of property
* Low cost of living compared with many other countries. Correspondingly low buying costs and maintenance costs
* High rental demand due to a strong tourist economy and an increase in commercial activity in large cities such as Kuala Lumpur
* Malaysia is among the top three of all Commonwealth countries in terms of tourist arrivals
* Easy access to Malaysia via cheap flights from Asian cities as well as from the UK (approx. £300 return)

Land for Development / Project Sourcing

Malaysian land purchase offers investors a prime opportunity to gain maximum returns on investment. Propertyshowrooms.com and IPIN (International Property Investment Network) work with a close network of developers, land owners and agents alike to establish a carefully vetted list of sources and contacts which allows us to find our clients the very best options available today. Should you so require, we will also assist you to set up joint venture opportunities in Malaysia and implement investment strategies with the help of our trusted network of competent and reliable professionals.

An improvement in the worldwide property investment climate now allows us to identify many large-scale individual investors and investment consortiums who wish to take advantage of the current strong investment locations in Malaysia.

Please request more information about this service.

Summary

Malaysia currently offers some of the best investment opportunities available in the worldwide property market. Rental yields and capital growth figures rate well amongst today’s emerging markets and a new spurt of corporate investments via investor friendly government policies, have boosted Malaysia’s economy to new levels. This, together with a booming tourist industry and the creation of new luxury resorts is creating an exciting property investment climate in Malaysia.

Intelligent investors are quickly making the most of today´s real estate market in Malaysia, while prices are low and opportunities still last.


International Property Investment Network (IPIN) And Thailand

IPIN, (the International Property Investment Network) has selected Thailand as one of its chosen locations to offer investment opportunities to its members. You can learn about our reasons for its inclusion in our Thailand investment research section. IPIN is aware of all the latest investment options available in Thailand and will help you adapt these to your requirements.

Why Invest in Thailand?

Exotic Thailand is Asia’s top tourist destination and offers a world class tourist industry at affordable prices, making it a magnet for visitors, re-locators and property investors alike. In many key locations in Thailand, the local economy relies heavily on tourism and increased property investment in these locations is now good news for domestic economic growth and good capital returns.
Natural and Cultural Factors

* Once an exotic long haul destination, Thailand is now also a sophisticated tourist destination with a universal appeal.
* For thousands of people who have worked in Asia for many years, Thailand is a very attractive retirement destination, in which the living environment will feel familiar.
* Retirement visas are available for foreigners over 50 years of age.
* Thailand has good schools, an efficient health care system and it is seen as a friendly country in which to live or visit.
* Thailand offers beautiful mountains, dense forests and stunning beaches, a tropical climate and cities teeming with culture and colour which draw visitors back each year.
* Warm weather for winter holidaymakers. Peak season is between November and February.

Economic Factors:

* The relatively undiscovered nature of Thailand means that property prices here remain far below those in the more established European markets, although they are growing quickly and strongly (around 10-15% a year).
* Thailand is the largest growth market in Asia. Some businesses choose Thailand as a regional base from which to keep their employees working all around Asia.
* Thailand has recently attracted significant foreign investment. It has become one of the Asian economic leaders and is one of the fastest-growing economies in the region.
* The completion of the Suvarnabhumi-Bangkok International Airport (SBIA) is expected to spur growth in commercial property markets in eastern Bangkok as well as make Thailand even more accessible by air. Thailand is one of the cheapest places to fly to in Asia.
* The country has strong business links with China and has an excellent infrastructure as well as world-class facilities in many resort towns.
* Property is much cheaper in Thailand than elsewhere and an increase in overseas interest in property purchase has helped to create an economic recovery in Thailand. Property investors who bought post 1999 have witnessed impressive capital growth, particularly in major cities.
* Rental potential is great, due to increased government spending luring growing numbers of tourists.
* No capital gains tax for private investors, and low ongoing taxes.
* Today foreigners are regarded by the government as a big investment opportunity in Thailand.

Land for Development/Project Sourcing in Thailand

The International Property Investment Network (IPIN) and Propertyshowrooms.com are pleased to offer clients a comprehensive bank of information regarding the very latest land investment deals available in Thailand, endeavoring to find you the hottest spots in Thailand before they become general knowledge to other investors.

Our members are offered assistance in setting up joint ventures with our network of carefully vetted and reliable developers or partners. Due to a recent increase in worldwide property investment, IPIN and propertyshowrooms.com constantly make contact with a growing number of large-scale and individual investors who are constantly looking for the best investment options in Thailand and other worldwide locations.

Please request more information about this service.

Summary

Thailand remains less exploited in the property investment sector than many other areas and for this reason prices are far below those in more established European markets. However in many areas, prices are moving upwards at a rate of approximately 10-15% per annum.

There are undoubtedly some very attractive investment options to be found in certain locations of Thailand and, according to world experts, Thailand’s economy is undergoing a steady growth spurt. While improvements to Thai property investment provisions continue, a symbiosis with the tourist economy and the real estate economy, will allow mutual growth at unprecedented levels.