The Trend
“Rich Asian individuals are snapping up luxury residential properties and even office towers in the West. But Asia’s biggest investors, including sovereign wealth funds, insurance funds and pension funds, are only just getting into the real estate game.
According to a new report released Wednesday by real estate firm CBRE, Asia’s institutional investors have just 1.7% of their assets in real estate, compared to as much as 8% by similar investors in Europe and North America.”
http://blogs.wsj.com/moneybeat/2013/07/31/asian-funds-set-to-snap-up-global-property/
Tokyo Cheap to Hong Kong Luring Asian Bargain Hunters: Mortgages
“Asian investors like Chang are being lured by returns as
high as 8 percent on rental income and signs the property market
is recovering. The government’s resolve to keep the yen weak has
also made real estate in Japan more affordable compared with
Hong Kong, Singapore and Taiwan, where governments have been struggling to contain surging residential prices.
Home prices in Tokyo are around 120,000 yen to 150,000 yen
per square foot, according to Chicago-based Jones Lang LaSalle.
That compares with about 280,000 yen to 400,000 yen in Hong Kong
and 200,000 yen to 250,000 yen in Singapore, it said.”
Source : Bloomberg
“House prices in London are continuing to outstrip those in other parts of the country, according to the latest Land Registry figures.”
http://www.bbc.co.uk/news/business-23467794
Crying Foul
I was hearing all sorts of claims and gossip on how property owners are buying small stakes into each other’s buildings to boost price levels and secure higher leverages. All hearsay of course.
““Three straight months of national home value appreciation above 10 percent is not normal, not sustainable and, frankly, not very believable.”