Asia ‘cautiously optimistic'

The general mood among US and European property executives who attended the Reuters Global Real Estate Summit was still somewhat subdued, according to a report from Reuters itself. Asian delegates are, however, beginning to experience a more upbeat mood in response to a projected upturn in the property market later during 2009...

While much of this optimism is cautious, several Asian developers are already making plans for new projects to start once the market improves.

The Chinese commercial property developer SOHO, for example, is planning new projects in Shanghai and Beijing. The third largest property developer in India, Indiabulls, is anticipating a demand recovery with plans to launch up to seven residential projects during the current financial year.

Jaime Ysmael, the Ayala Land Chief Financial Officer and Asian Public Real Estate Association President, said, "Asian companies in general are in much better shape compared to their peers in other regions."

The report ascribes the optimism to a residential market recovery in Asia as a result of an influx of buyers from China, Hong Kong and Singapore. The savings rates in these regions are high, while banks are also willing to lend.

According to Reuters, the transactions in Asian regions have been so numerous that they nearly rival those of the 2007 bull market. Property values have also begun to increase with price increases by developers such as City Developments in Singapore.

These factors indicate a general return of confidence in the property market, which developers anticipate with bated breath. Despite the general gloominess of other world market representatives at the summit, other markets may soon follow Asia's example.

Source: www.hotproperty.co.uk