Hong Kong Property Prices Keep Rising

Hong Kong’s Upward Bound Real Estate

First Published Date: Feb 10, 2013

Hong Kong is the third most expensive place to buy an apartment, according to a recent report published by Global Property Guide shows. Monaco and London are the most expensive cities on earth for apartments, just before Hong Kong.

An average 600 square feet apartment is expected to cost somewhere between $500,000 to $600,000 USD. However, this high price is not a surprise as Hong Kong has been doubling its property prices in the past four years. In 2012, property prices have increased 20 percent. Hong Kong has one of the most open economies in the world and its property market is investors’ favourite due to easy and straightforward real estate transaction procedures.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

Investors from around the globe, mainly from the U.S. and European countries, are flocking to Hong Kong to chase growth. Hong Kong recently implemented measures to curb its overheated property market. Some of the measures taken were to implement a 15 percent tax for foreign and corporate buyers and the extension of a special duty tax on frequent transactions, along with increasing the supply of apartments. However, these measures were proved to be insufficient to curb property prices. Sales volumes have declined, but no significant price correction has come into effect. Hong Kong’s low rate mortgage supports high property prices in the city. Hong Kong’s lending rate is tied to U. S. low interest rates to maintain currency peg to the U.S. dollar.

As long as the U.S. and developed countries keep their interest rates at a record low and go through quantitative easing, investors will be pouring their capitals in Asia to pursue growth. With capitals flocking in from foreign countries and from local buyers due to low local lending rates, the Hong Kong real estate boom may not bust that soon – as least until 2015, as the US Fed is expected to raise rates gradually starting then

Real Estate In Palm Island Dubai

Properties In Dubai Palm Islands

First Published Date: December 2, 2016

The Palm Islands in Dubai are artificial, man-made islands in the Persian Gulf and one of the most ambitious and talked about modern-day real estate projects. It is considered as the 8th wonder of the world and visible from space like the Great Wall of China. The Palm Island project is made of three Palm islands (Palm Jumeriah, Palm Jabel Ali, and Palm Deira) and there are varieties of apartments, villas, and houses available for real estate investors to explore.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

The Palm Islands were the idea of Sheik Mohammed Bin Rashid Al Maktoum, the king of Dubai. State-owned property developer Nakheel Properties is behind the development of this artificial archipelago with the help of Belgian and Dutch construction companies. It is estimated that nearly 53 million pounds of sand and 12 million pounds of rock were used to construct these islands from the ocean floor.

The Palm Islands have 60 hotels, 4000 beachside villas, 1000 water homes, 5000 shoreline apartments with other facilities such as shopping malls, marinas, water parks, sport facilities, a ski resort, and so on. Residents can access these islands via bridges, boats, or monorail system.

Apartments in the Palm Islands can range from 1 bedroom to 4 or more bedrooms. Each apartment can have a view of the landscaped gardens or the Persian Gulf sea view. Price range can be from lower $300 thousands to over $2 million dollars US. A villa can cost from less than 1 million US$ to 10 and above million US$ depending on location and what type of view it offers. The amenities available in one of the apartments or villas make you feel like are living in an upscale ocean resort – not in a residential unit.

Although residential property prices have slumped in Dubai right after the financial crisis in 2009, there have been steady upward trends in prices since then. Villa and apartment prices have gone up 20 and 7 percent annually since then. Many new projects have been announced in 2012. Multibillion dollar project Mohammed Bin Rashid City is one of the new projects to raise investors’ curiosity across the globe. It is expected to feature the largest mall in the world – with a park which is 30 percent bigger than Hyde Park in London.

Looking forward in 2013, Dubai’s property is expected to be one of the strongest performers due to its increased demand. Professionals relocating from Asian and western countries are expected to rise and push up the demand for luxury homes. Barring any drastic slowdown in global economy, we should see more high-end projects to keep up with its demand in the future years.

2017 Starts With Optimism in Global Real Estate

Recent International Real Estate Highlights

First Published Date: January 31, 2017

Toronto Luxury Real Estate Sales Up

As Vancouver slaps a 15 percent foreign buyer tax on its real estate market, Toronto’s luxury real estate is benefiting and on the rise. Sotheby’s International Realty Canada reports that Toronto is leading Canada in high-end residential real estate sales for the third consecutive year with an increase of 77 percent from 2015.

Factors that are playing a role in the growth are low interest rate, high employment, and high confidence. Sotheby’s International points out that Toronto enjoys natural boundaries like the lake and the Greenbelt – giving it less land to develop and leading to lower supply, which increases demand.

Also, foreign buyers are rushing to Toronto to grab a piece before the city starts putting restrictive measures in place to discourage foreign buyers from grabbing more real estate in the one of the world’s best places to live.

U.S. Cities Still Offer Tremendous Value in Real Estate

U.S. cities, especially in the south like Texas and Florida, offer tremendous opportunity in real estate. According to a report from Forbes and Local Market Monitor, Dallas is on the top of the list of investor-friendly places with a projected 31 percent growth rate. Cities like Jacksonville, Orlando, Seattle, and West Palm Beach are also on the hot growth list.

Dubai Real Estate Rising

Suffering from a sluggish growth since mid-2014, Dubai is on the move again. According to a report released by JLL Chicago, Dubai real estate is poised to rise in 2017. There are various factors favouring the growth. Stabilizing oil price and hosting the EXPO 2020 are some of the main factors.

However, Abu Dhabi (UAE capital) could face further declines in real estate in 2017 because of its less diversified economy and less expenditures on projects.

The United Kingdom Is The World’s Most Real Estate Transparent Country

Global Real Estate Transparency Getting Better

First Published Date: August 27, 2016

International property advisers Jones Lang Lasallo, or JLL, recently released their Global Real Estate Property Index for 2016. Today, I will provide some highlights from the report.

– Transparency scores seem to be improving, as there was an average 2.4 percent increase from 2014 to 2016.

– New legislation easing red tape, setting higher ethical standards, and enhancing transaction process to make it smooth and transparent are some of the reasons behind the progress.

– Some of the top transparent countries are Australia, Canada, United Kingdom, and United States.

– Some of the Sub-Saharan countries such as Botswana and Zambia are showing significant improvements.

– Some of the least transparent countries are Libya, Honduras, Djibouti, Senegal, Venezuela, and Ivory Coast.

– In the Middle East and North Africa region, Dubai (48) is the most transparent followed by Abu Dhabi (59).

Author/Copyright: Ahmed Dawn www.adawnjournal.com

– Saudi Arabia (63) and Egypt (65) have shown strong advancement and moved into the Semi-Transparent group.

– The top ten highly transparent countries account for 75 percent of the global commercial real estate investment.

– Capital injection into global real estate is rapidly increasing. The amount is $700 billion now, but is expected to exceed $1 trillion within the next decade.

– Panama Papers revelations have forced greater real estate transparency and helped fight international political corruption.

– Technology continues to help bring more transparency. Some of the countries that have used technology successfully to bring more transparency are Kenya, Ghana, and Ecuador.

– Six of the top transparent countries are in Europe.

– The United Kingdom is the world’s most transparent real estate country.

Real Estate in Vietnam

Vietnam Real Estate

First Published Date: October 1, 2016

Vietnam has come out a long way from the dark chapter of the Vietnam War. In a survey done by the Association of Foreign Investors in Real Estate, Vietnam ranks as the fourth emerging global real estate market after Brazil, China, and India. With its strong economy, growing middle class, growing urban population, rising tourists numbers, Vietnam real estate market will grow at a fast pace and no wonder global real estate investors are paying more attention to Vietnam real estate than ever before.

Before 1990, Vietnam had no real estate market as everything was owned by the state. As a result of the "Doi Moi" reform that was introduced in 1986, the first laws recognizing the concept of private ownership came into effect in 1990 and 1998. From 1998 to 2004, there were several revisions and reforms took place. Due to these new reforms and revisions, starting in 2004 the real estate market in Vietnam started to attract foreign interests and investments.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

Starting in 2009, legal foreign residents (after meeting certain conditions set by the government) in Vietnam are allowed to purchase property in certain areas under a 50-year leasehold. The property can also be resold after 12 months of ownership. Vietnam does not allow foreigners to have freehold property.

Vietnam is home to about 90 million people. The majority of its population live in the countryside. However, the residential sector is currently showing strong growth due to the rising income of the middle class and their willingness to purchase their own residential places. Demand for Vietnam’s two major cities such as Ho Chi Minh City and Hanoi is strong and it is estimated that the properties that are coming to the market will not be enough to meet its demand. The office market also shows strong demand for quality spaces, as the occupancy rate is around 95 percent. The leisure and resort markets are also going through strong demand. Vietnam has 3,000 kilometers coastline and its tourist numbers and accommodations have increased significantly. Hotels, resorts, and villas have high occupancy rates in this sector and real estate demands will increase in the coming years. The World Travel and Tourism Council predicts that Vietnam will be one of the top ten tourist destinations in the next ten years.

The property market in Vietnam still offers low entry prices with growth potential in the future. However, because it is an emerging market, transparency still can be an issue. Having a local partner or agent is a huge advantage dealing with real estate issues in Vietnam. Also, keep in mind that all real estate transactions are carried out in pure gold. Real estate investors need to pay close attention to gold prices and conversion rates.