Thursday, June 19, 2008

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Positive Outlook for Asian Real Estate Say Who?

The following post refers to a news report: Positive Outlook for Asian Property published by Straits Times, June 20, 2008 Friday

Posted by Anonymous, 20 June 2008:

Quote report:
"THE flow of capital into the Asia-Pacific’s real estate market from outside the region is accelerating, a new report on property investment has found.
This is the result of the credit crisis in the United States and Europe, said the report by KPMG, FTSE Group and Asian Public Real Estate Association (Aprea). "

The people who're saying this are in the real estate business .. of course, they'd want to talk up the market .. what do you expect.

Quote report:
"Real estate as an asset class has outshone equities and long-term government bonds over the past decade, providing average returns of 7 per cent to 8 per cent, said the report."
Most people who bought 10 years ago during the 1996 peak are still holding negative assets today in Singapore!

Quote report:
"while returns on real estate investments are expected to decline in most countries, returns in the Asia-Pacific are expected to remain higher than the global average of slightly over 5 per cent for the coming year, it said."
Vietnam's real estate has collapsed, China's also declining, so ???

Quote report:
"Market sentiment in Asia has been hit by the credit crunch and it is unclear when a rebound will occur, but the regional outlook should remain positive, said Aprea’s chief executive officer, Mr Peter Mitchell."
He's contradicting himself - if rebound is unclear, how can that be positive outlook?

Quote report:
"Real estate investment trusts (Reits) are not growth stocks but good defensive stocks and inflation hedges, said Mr Mitchell. Projections show Asia’s Reit market with a capitalisation exceeding US$100 billion (S$136.8 billion) by 2010."
Reits are doing badly. Property stocks have hit 17-yr low.(For Singapore)

Quote report:
"Asian real estate, it said, may be experiencing some short-term pain but will eventually benefit from the credit crunch."
Asia's having a credit crunch too.

Quote report:
"In time, the credit crisis will result in Asia being regarded on a more equal and level-playing field compared to the more mature but struggling markets of the US and Europe.’"
That's for every body to think about..

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May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation

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