According to Bloomberg, Indonesia’s most aggressive monetary tightening since 2005 is set to slow economic growth without denting soaring property demand in the world’s fourth-most populous nation.
A young population, elevated inflation and property-price gains that outpace interest rates are spurring real-estate sales from Jakarta to Manado. Home prices in the third quarter probably rose 14.6 percent from a year earlier, according to a Bank Indonesia survey, while the Indonesian Real Estate Association predicts housing sales will climb more than 50 percent this year.
“Indonesia has a huge population, that’s a potential market for us,” said Setyo Maharso, chairman of the Indonesian real estate association, which predicts 2013 property sales will rise to 400,000 units from 260,000 last year. “For our buyers, as long as they have the ability to pay monthly installments, sales will keep increasing till the year end.”
With foreigners restricted from owning property in SoutheastAsia’s biggest economy, Indonesia is confronting a surge in local demand rather than the capital inflows that spurred record home prices in neighboring Singapore and Hong Kong. After the central bank imposed stricter loan-to-value ratios for mortgages, persistent price gains may prompt the government to raise some real-estate taxes, PT Bank Danamon Indonesia said.
“By giving a luxury tax, especially for high-end properties, it would help to curb home-price increases,” said Anton Gunawan, chief economist at Bank Danamon who was a candidate for the No. 2 job at the central bank this year. “Returns from property remain high as there’s an expectation that home prices are still rising.”
Posted by camelliacamellia on October 23, 2013
Investment in Asia Pacific commercial real estate markets higher than expected in H1 2013
Direct commercial real estate investment in Asia Pacific has exceeded market expectations in H1 2013, reaching USD 59.7 billion, 21 percent up on H1 2012. According to the latest Jones Lang LaSalle capital markets research, transaction volumes in the region have also increased quarter on quarter, topping USD 32.6 billion in Q2 2013, up 21 percent on the previous quarter.
The growth was predominantly driven by the region’s largest markets with Japan, Australia and China all experiencing strong deal flow throughout the quarter.
In Japan, investor confidence has been boosted by improving macro-economic indicators following government stimulatory measures. Acquisitions have been dominated by J-REITs where inclusion in the Bank of Japan’s asset purchase program has supported improved unit prices over the first half of the year. This coupled with increased IPO activity has supported transaction volume growth to USD 10.2 billion in Q2 2013, up 78 percent on the same quarter last year. Over the first half of 2013, volumes reached USD 20.8 billion, 50 percent higher than the first half of 2012.
Posted by admin on July 17, 2013
China’s Citic Capital Raises $683 Million Fund for Retail Property
Chinese asset management firm Citic Capital Holdings Ltd. has raised $683 million for a fund focusing on retail properties in China, underscoring continued investor enthusiasm for the country’s real estate sector.
Citic Capital has already invested $250 million of the new fund into three projects, including a shopping mall in Changsha in China’s Hunan province, another in Hefei in Anhui province and a third in Shanghai, according to its press release Monday. Construction on the latter two projects will start in the third quarter.
The firm said it plans to invest in up to five more projects in second-tier cities using its new real estate fund.
Posted by admin on June 17, 2013
The U.S. has an open economy and low barriers to foreign investment, which has not gone unnoticed by the Chinese; in fact, we are at the beginning of a tidal wave of direct Chinese investment in American businesses that envisions $1 trillion to $2 trillion of Chinese overseas investment this decade. The State Administration of Foreign Exchange (SAFE) has set up a New York operation to invest in private equity, real estate and other U.S. assets. Wanxiang Automotive acquired the assets of battery manufacturer A123 Systems and BGI Shenzhen purchased Complete Genomics. Chinese companies that have mastered manufacturing must develop their distribution, marketing and innovation skills, all areas where American businesses could help. How can America take advantage of Chinese investment money hungry for opportunities? Which type of deals are in the radar for SAFE or CIC? How to manage potential concerns that political tensions could get in the way?
Posted by Innovator on May 28, 2013
With more than 100 tall cranes on the skyline, this metropolis in western China
looks vibrant at first glance despite the country’s sharp economic slowdown.
But only a few cranes — those building national government projects like a high-speed rail line — are floodlit and busy far into the night. The more numerous cranes looming above the skeletons of future high-rises move much less often, even by day, and are dark and deserted by night.
The pattern among Chengdu’s construction cranes is evident across the country. As summer fades into autumn, Beijing is stepping up investment in a bid to rescue the economy, but consumers, businesses and debt-burdened local governments in China are showing little interest in spending money again.
Economic data released on Sunday by the National Bureau of Statistics showed the extent of the problems. Investment in new buildings and other fixed assets is in the doldrums. Manufacturers are retreating from ambitious production goals as they struggle with bloated inventories of unsold goods. Even the service sector, still underdeveloped and widely seen by economists as full of potential, is showing signs of distress.
Posted by byu2012 on September 11, 2012
NEXT week marks the fourth anniversary of one of the most momentous events in the world’s financial history the fall of US banking giant Lehman Brothers, which unleashed a negative chain reaction across the global financial system and pushed the world’s economy to the brink of collapse.
Looking back at how the events unfolded in 2008 and the subsequent year, one has to appreciate the fact that if not the trillions of dollars spent on stimulus packages by governments worldwide, and the swift action by major central banks in cutting interest rates and easing their monetary policies, the world would not have been able to pull itself out of what some economists call the “abyss”.
While it has been some years now since the global economy recovered from that crisis, there’s little to celebrate. We are still not out of the woods, and reforms, as promised by policymakers worldwide, have not been able to keep pace with the rapidly changing environment.
Posted by byu2012 on September 10, 2012
China has made its first tentative investment in Canada during 2005, when it purchased 16.7 percent share of the then-private oil sand developer MEG Energy with 120 million dollars. Today, reported by the Reutors, it is making a bigger move.
China’s top offshore oil producer CNOOC has agreed to buy Canada’s Nexen for about $15.1 billion in one of the most ambitious acquisitions by a Chinese company to date that may test Ottawa’s tolerance of foreign takeovers.
State-controlled CNOOC said it would pay $27.50 per common share, representing a 61 percent premium to Nexen’s closing price in New York on Friday.
“The aggregate value of the consideration of the proposed acquisition is approximately $15.1 billion (approximately HK$117.2 billion), and is to be payable in cash,” CNOOC said in a statement filed on the Hong Kong stock exchange.
Posted by Innovator on July 23, 2012
The likes of Sino Land Co. Ltd., Henderson Land Development Co. Ltd. and Cheung Kong (Holdings) Ltd. could be seeing their elite status as property developers shaken up, according to Barclays.
The bank notes that there has been an uptick in deals in recent months by small and mid-cap property developers in Hong Kong, as well as increasing interest from mainland players, which it says is “unusual.”
Earlier this month, an entity backed by Chinese state-owned commodities trader Cofco Corp. bought a majority stake in Hong Kong Parkview Group Ltd. for HK$362 million. Hong Kong Parkview is the developer of high-end housing complex Parkview.
Posted by Innovator on July 19, 2012
China is unlikely to introduce fresh measures to cool the real estate market even as home prices snapped eight straight months of decline in June and amid fresh rhetoric from the country’s leader vowing to prevent a rebound in prices.
Instead, Chinese authorities would enforce existing rules more stringently, analysts say, such as discounted mortgages for first-time home buyers to make it easier for them to own property and restrictions on speculative purchases so that prices do not increase excessively. It is fine balance they have to strike, they added.
“I think they would continue with relaxation of first home purchase to see more transaction volumes and they would hope that developers would start to invest with the money they get from these home sales,” Ding Shuang, Senior China Economist at Citi Investment Research, said. “They want to encourage some investment so this increase can be taken as a good sign.”
Posted by Innovator on July 18, 2012
Reutors have reported on China’s job market.
China’s job market could turn for the worse and the government needs to step up efforts to create more jobs, Premier Wen Jiabao said in remarks published on Wednesday, underscoring official concerns about an economic slowdown.
“Currently and in the future, China’s employment situation will become more complex and more severe,” the official China Securities Journal quoted Wen as saying.
“The task of promoting full employment will be very heavy and we must make greater efforts to achieve it,” he added.
Posted by Innovator on July 18, 2012