Thai govt ends property tax breaks as economy recovers

March 10, 2010 - Thailand

Thailand will not renew property tax breaks when they expire at the end of March as the economy is recovering and developers are returning to normal profits levels.

The incentives, including a reduction in the property transfer fee, a cut in the mortgage registration fee and a lower special business tax, helped boost property sales which increased by 7% in 2009, officials said.

But now developers are warning that they will have to pass on the additional costs to buyers and prices will rise from April as a result.

Thai Developer Bets on Market

March 04, 2010 - Thailand

Major Thai resident property developer Land & Houses PCL said Tuesday it plans to launch 17 new projects this year intended to reap a combined 30.95 billion Thai baht ($942 million), but said profit growth could slow this year and cautioned that demand would be capped while domestic political tensions continue to linger.

The Thai property market performed strongly last year despite the country slipping into its first recession in 11 years, with the top three biggest developers all posting double-digit earnings growth. Sales were aided by government tax breaks for the sector.

The government decided not to extend those incentives when they expire March 28. That could pressure the bottom line for real-estate firms like Land & Houses, which said Tuesday it expects net profit growth of single-digit levels this year. Land & Houses posted a 14% rise in net profit last year to 3.91 billion baht.

Singapore shifting to new progressive property tax system

March 03, 2010 - Singapore

Singapore´s Budget 2010 brought interesting news for the property sector – the progressive property tax for all owner-occupied residential properties.

Under this structure, those who have properties with an Annual Value (AV) exceeding S$77,000 will see an increase in their property taxes; this equates to a mere 3 percent of private property owners or 0.4 percent of all property owners in Singapore.

This, of course, pertains to those high-end property owners.

This move by the Government is definitely catered to reducing the pressure on mass market owners and get more out of those in the wealthy segment of society but perhaps it is also a positive indication that it has noticed the improving market sentiments, and especially on the high-end property sector?

Hong Kong, afraid of bubble, ups luxury property tax

March 02, 2010 - Hong Kong

Hong Kong’s new fiscal budget for 2010/2011 includes additional taxes to reduce volatility in the property market and monitoring of speculators.

Although Hong Kong’s gross domestic product (GDP) only fell by 2.7% in 2009 and growth in GDP of up to 5% is expected this year, the government is still concerned about the sustainability of the current economic recovery.

Financial Secretary John C Tsang announced an HKD20 billion relief package that includes tax rebates, rates concessions and public housing rental waivers, to provide financial assistance to the community during the economic recovery.

Tentative signs of Vietnam real estate recovery as developers seek to tempt back foreign investors

March 02, 2010 - Vietnam

After a bleak past two years during the global economic downturn the Vietnam real estate market needs foreign investment to recover, it is claimed.

The industry is hoping that tentative signs of increasing interest will lead to more robust interest from overseas buyers.

‘Since the global financial crisis, many foreigners have left the country and foreign demand has dried up. Although fundamentally there is still demand for property, it is not as strong as it used to be since the foreigners left,’ said ECM Libra analyst Bernard Ching.

London Luxury-Home Prices Increase the Most Since March 2008

March 01, 2010 - London

Luxury-home prices in central London jumped 17 percent in February from a year earlier, the biggest gain in almost two years, as more buyers competed for a dwindling number of properties, Knight Frank LLP said.

The value of houses and apartments costing more than 1 million pounds ($1.5 million) rose 3.2 percent from January, the London-based property broker said in an e-mailed statement today.

The annual increase was the largest since the market peaked in March 2008 and compares with an 11.5 percent advance in January. Prices are still 10 percent lower than the peak.

“The continuation of the growth in prices and the recent increase in the speed of such growth has been caused by a dramatic shortage of supply,” Liam Bailey, head of residential research at Knight Frank, said in the statement.

Strong recovery for Asia real estate markets across all sectors

February 24, 2010 - China

Asian real estate investment markets posted a strong recovery in the second half of 2009 after witnessing a difficult start to the year, according to new data.

Investment turnover bottomed out in the first quarter but improved thereafter as confidence gradually returned, underpinned by the strong rebound in the equity markets, the persistence of low financing costs and a stabilizing trend in price levels across key markets, says the report from CB Richard Ellis.

Direct real estate investment in Asia jumped 56% year-on-year in the second half of 2009 to an estimated US$25 billion. However, overall transaction volume was still 22% lower in 2009 compared with the previous year, the Asia Investment Market View report for the second half of 2009 shows.

Beijing property prices predicted to be steady in 2010

February 22, 2010 - Beijing

Residential property prices in Beijing are expected to maintain a steady course during 2010 and the city’s mayor has promised not to use administrative measures to intervene in the market.

Mayor Guo Jinlong is in favour of letting the real estate market find its own price levels and said the city would not introduce administrative measures to push down property prices.

The pledge is the first of its kind by a mainland China city mayor and reflects the dilemma facing local and city governments when it came to the issue of curbing demand for property, agents said.

Buying in Bali

February 16, 2010 - Bali

Under Indonesian law, foreigners are not permitted to have real estate / property in Indonesia.

However, foreign individuals can legally acquire real estate / property in Indonesia and enjoy full beneficial rights. Buyers should seek legal advice when securing property in Bali with the following options available:

BALI a lingering cultural paradise

February 13, 2010 - Bali

Breathtaking beaches, tangled green jungles, river valleys oozing mist, shades of emerald green stepping up rice paddy terraces – Bali epitomises the natural beauty of Asia.

Proud of their natural heritage, the Balinese are gentle guardians of the land and sea, adding their own harmonious mix of traditions, marked by festivals, celebrations and daily rituals.

Their steadfast attachment to cultural and religious rituals stand out in the modern world, and attract visitors who lap up the visual, atmospheric and cultural harmony.