RICS Global Distressed Property Monitor Q4 2010
HONG KONG, March 16, 2011 /PRNewswire-Asia/ -- The Q4 2010 RICS Global Distressed Property Monitor, issued on 14 March, 2011, reveals the supply of distressed property increased in more than half the countries but only a modest pick up was found at global level.
Only 10 out of 25 countries surveyed shows an acceleration in the net balance for distressed listings in Q4 but the magnitude of rise remains marginal to date. However, respondents expect the number of distressed properties coming onto the market in the first quarter of 2011 to increase across 16 out of 25 countries surveyed - with the biggest increases in the Republic of Ireland, Hungary, UK, and Germany. At the other end of the spectrum, decreases are expected in South Africa, Hong Kong and mainland China.
While still in positive territory, China did experience a slow-down in the pace of growth in investor interest in distressed property quarter over quarter, moving from a net balance percent of +42 to +26. In addition, agents report a change in sentiment relative to depressed property coming to market in Q1 2011. From a net balance score of +4 in Q3, property professionals have now posted a net balance score of -11, indicating the expectation that far fewer distressed properties will be available in Q1 2011.
Commenting on China market, Henry Li, RICS China Chairman said:
"Given the new measures on housing purchase restriction across major cities in China, it is not surprising to see the difference between the growth in interest in distressed property assets and the expected growth in the number of properties coming to market. With the new housing measures implemented recently, it will be difficult to reverse this imbalanced trend before summer of 2011."
RICS Hong Kong External Affairs and Public Concerns Committee Member Denys Kwan, commented on Hong Kong situation:
"Generally, the property market in HK was strong in Q4. It only slowed down a bit for a few weeks when the Special Stamp Duty was announced on November 19. As a result, there were fewer supply and fewer transactions. But the price of property remained robust in Q4 and actually had been on the rise over the past few months. The average number of distressed properties in the market for sale was down to around 50 per month in Q4."
Less interest from specialist funds
The survey for Q4 suggests a small fall in the level of specialist funds interest in distressed property, down from 21 countries in Q3 to 18 in Q4 2010, and a rise in distressed properties coming to market. This trend looks set to continue into Q1 2011, with property professionals in 64 percent of countries covered reporting an expected increase in distressed property coming to market in the coming 3 months.
Levels of investor interest
In Q4 2010, the Ukraine experienced the most dramatic fall in the pace of investor interest, while interest rose in the Republic of Ireland, UAE and Spain. France saw the largest rise in investor interest overall, however, with net balance percents moving from 0 in Q3 2010, to +25 for this quarter.
To download the Survey, please click at the link below:
http://www.ricsasia.org/newsDetail.php?id=331
Notes to Editors:
Net Balances: Net balance percents are calculated by subtracting the numbers of respondents reporting 'down' from the number who reported 'up'.
About the Survey: The RICS Global Distressed Property Monitor, a subset of RICS' Global Commercial Property Survey, is a quarterly report that reveals distressed property trends in 25 commercial property markets across the globe. A distressed property is defined as a property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed property usually fetches a price that is below its market value. An increased rate of distressed properties entering a country's market can be seen as a negative economic indicator while a decrease may signal recovery.
Respondents were asked to compare conditions in Q3 2010 to conditions in Q4 2010. Responses for this survey were collected until 4 January 2011 and amalgamated, at a country level, across the three real estate sub-sectors of offices, retail and industrial property to form diffusion indices for the commercial market as a whole.
About RICS & RICS Asia
RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 150,000 members globally and represents, regulates and promotes the work of property professionals throughout 146 countries.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members. The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.
Media enquiry, please contact:
RICS Asia Public Relations Representative
Ms Belinda Chan / Ms Ava Lau
Tel: +852-2372-0090
Fax: +852-2372-0490
Mobile: +852-9379-3045 / +852-9829-2913
Email: belinda@creativegp.com / ava@creativegp.com
