Low borrowing costs and bank-savings rates of almost zero are prompting investors to buy office space in Hong Kong, where rents are the world’s fourth-highest. The benchmark three-month interbank loan rate fell to a four-year low as liquidity surged after Hong Kong issued record amounts of the local currency to preserve its fixed exchange rate.

The strata market refers to units or floors, instead of whole buildings: there are four such prime office buildings in Central and neighbouring Admiralty, according to CBRE. Average prices fell as much as 49 per cent from their peak of HK$16,900 after Lehman collapsed in September, Mr Ma said.

There were four sales of prime office strata units exceeding HK$100 million in value between January and May, compared with 21 in the first half of 2008, Mr James said.

Still, gains in office prices may leave investors ‘exposed’ if the economy and rents fail to recover in the next six to 12 months, Mr James said.

Job cuts by HSBC, Television Broadcasts Ltd and PCCW Ltd pushed Hong Kong’s unemployment rate to a three-year high of 5.3 per cent in May. The economy contracted 7.8 per cent in the first quarter from a year earlier as exports slid the most since 1954.

Some investors may expect real estate to rebound first. The Hang Seng Property Index, tracking six of the city’s largest developers, has gained 35 per cent this year, compared with the 24 per cent increase in the benchmark Hang Seng Index.

Billionaire Lee Shau- kee, Henderson Land Development Co chairman, sold a floor of office space at The Galleria on Queen’s Road Central for HK$18,000 psf earlier this month, 59 per cent more than another floor in the same building sold for in May, Sing Tao reported on June 11.

Bonnie Ngan, a Henderson spokeswoman, declined to comment on the report.

The value of office space is rising even as falling rents cut yields to 3.9 per cent from 5 per cent at the end of 2008, CBRE said. By comparison, a HK$150,000 deposit with HSBC Holdings plc, the bank with the most branches in Hong Kong, generates annual interest of 0.001 per cent, or HK$1.50.

Hong Kong’s lending benchmark three-month interbank offer rate, or Hibor, was at 0.334 per cent on Tuesday, down from 0.949 per cent at the beginning of the year.

When looking for land for sale in Thailand, you should first be clear about what type of property you are actually interested in. You may look at investing in a holiday home, villa, town home, commercial property etc depending on how you are planning to utilize the property. Thailand has lately become a hot real estate investment destination mainly because the real estate prices are still lot lower than any European or American destination. Secondly, Suvarnabhumi-Bangkok International Airport has made international air travel to Thailand more conducive than before. Thirdly, it has an impressive rental potential thanks to the huge tourist turnover every year.

For any foreigner who is looking for buying land in Thailand he may do so by either of the two options: leasehold or freehold. Foreigners are generally comfortable by investing in condominiums, i.e. out of the total condo units in any building where you are looking to invest, foreigners may own 49% and Thais own 51%. Condominiums come under the category of a freehold property and with proper assistance from a professional lawyer it is possible to own the land completely too.

While buying a condominium it is advisable to check the following as safety measures:
• Title check to ensure that you are buying legal land from a legal owner.
• Have your lawyer draw up a purchase contract.
• Negotiate the payment of the transfer fee and decide the amount that would be paid by you and the amount that would be paid by the seller at the time of sale.

For a leasehold property, a 30 year lease would be mandatory on the home you wish to lease and a renewal would be required after the aforesaid period. Alternatively, you may also hold a 30 year lease on a plot of land and construct a house on it and rent it out. In such cases the ownership of the house stays yours and the land continues to be leased. Later if you wish to sell the house you may do so too. If your buyer is a citizen of Thailand you get to sell the land along with the house. If not then the lease on the land continues and the house owner changes.

To qualify for a conventional mortgage you will need a down payment of 25% or more. However, you can qualify for a low down payment insured mortgage with a down payment as low as 5%.

Secondly, you will require money for closing costs (up to 2.5% of the basic purchase price).

If you want to have the home inspected by a professional building inspector – which we highly recommend – you will need to pay an inspection fee. The inspection may bring to light areas where repairs or maintenance are required and will assure you that the house is structurally sound. Usually the inspector will provide you with a written report. If they don’t, then ask for one.

You will be responsible for paying the fees and disbursements for the lawyer or notary acting for you in the purchase of your home. We suggest you shop around before making your decision on who you are going to use, because fees for these services may vary significantly.

There are closing and adjustment costs, interest adjustment costs between buyer and seller and (depending on where you live) land transfer tax – a one-time tax based on a percentage of the purchase price of the property and/or mortgage amount.

Finally, you will be required to have property insurance in place by the closing date. And you will be responsible for the cost of moving.

Remember, there will be all kinds of things you’ll have to purchase early on – appliances, garden tools, cleaning materials etc. So factor these expenses into your initial costs.

In the Philippines, real estate businesses can without danger count on their money doubling within the next four years, even with tax breaks and government service fees. The capital gains taxes are substantial but investors do not need to be concerned regarding the housing market going down after they have put money directly into a portion of property.

The Philippines is an example of the countries that analysts state will likely observe a big upturn in their property sector. In the Philippines, real estate will continue to be formidable even during the process of lots of adjustments in the worldwide fiscal design. Apartments and condominiums in the Philippines are selling quickly and are usually sold out prior to the building itself is completely full.

A couple of years past, the Philippines wasn’t exactly the place to check out when property investors looked for a area to spend money on. In fact, there were so many property hotspots all over the world that several excellent international locations ended up overlooked in the property expansion marketplace. One situation improved the way property investors looked at the Philippines. Housing advancements picked up and considerably increased throughout the last two years.

This was when property financing companies began to grow their holdings into the Philippines and capitalized in promoting flats that were advertised especially to younger individuals—young people in their mid to late 20s.

What prompted property companies to take their business to the Philippines? Housing in the Philippines were also given a similar figure for expected profits from tenant leases. This was excellent announcement for investors due to the fact it provides their investment funds more quality while not having more threats. It also enhanced the Philippines as a property investment destination.

An additional reason why the Philippine real estate sector went right up is the overall improvement of the region. The GDP expansion rate in the first quarter of 2008 was almost 8%, which is essentially better than various other nations in Asia like India or China. In the Philippines, real estate property investors were all fired up and keen to recommend their latest projects and to label the country the hottest rising real estate marketplace.

Buyers can certainly count on the stability of the real estate industry sector in the Philippines. In fact, they are able to even protect themselves from bad ventures if they put their funds in the Philippines property sector.

First of all, you may want to shop around to look at the different housing loan packages offered by banks. Different banks offer different mortgage packages. The borrowers have to choose the most suitable packages for themselves, according to their financial needs. Bankers would decide on the loan approvals based on 5 C’s, which stands for Characteristic, Capacity, Capital, Condition and Collateral.

Characteristic refers to the repayment record of the borrower. This is given the heaviest weightage by the banks in deciding the loan approvals. The borrower’s payment track record can easily be obtained from the Central Credit Reference Information System (CCRIS). Bank Negara Malaysia has a Kiosk Counter to allow the public to check their CCRIS. This is a free service provided by the Malaysian Central bank.

Capacity refers to the Debt Income Ration (DIR) of a borrower. The total debts and new housing loan installment divided by the total borrower’s income must not be more than 40% in ratio. Capital refers to the networth of the borrower. Condition refers to the economy and borrower’s condition. Collateral refers to the property that the borrower going to finance. The fair market value, marketability factor, and the condition of the property are always taken into consideration while considering the loan approval.

After your housing loan has been approved, the next step is to check the conditions of the letter of offer issued by the bank, which includes the interest rate, the holding period starting from first drawdown or last drawdown, installment amount, and other details.

Choosing a responsible lawyer is another vital issue. An irresponsible lawyer might drag the processing of the Sale & Purchase Agreement and Loan Agreement. The Purchaser might end up having to pay the penalty to the Vendor if the housing loan has not paid before the expired date. Hence, choosing a good, reputable and responsible lawyer will expedite the whole process.

As a purchaser and borrower, is important to follow up closely with the bankers and lawyers in order to get things done on time.

There is only one potential issue overshadowing the sector and that is one of short term oversupply in the face of slightly restricted demand. But there are even ways for an investor to overcome this in 2007 immediately by targeting their focus specifically on decent residential stock. There are four firms widely cited as worthy of great consideration and they are Sunrise Berhad, YNH Property Berhad, IGB Corp Berhad and Plenitude Berhad.

Driving industry confidence in the property market in Malaysia going in to 2007 was the announcement back in April 2006 of the Malaysian government’s blueprint for economic growth and diversification for 2006 – 2010; the government’s ninth Malaysia Plan as it is called, has impressive provisions for infrastructure improvement and general economic development that analysts believe will positively and directly affect the real estate market across the nation.

Another particularly positive factor in the favour of real estate in Malaysia is the value of the local currency the ringgit…it is so far below the euro, dollar and British pound that foreign investors buying in Malaysia can get so much more for their money! Add to this the fact that property per square foot or meter in all major Malaysian towns and cities is a fraction of the cost of similar property in the likes of London and New York and yet demand for real estate is high from an affluent expatriate market as well as an increasing Japanese, Indian and Singaporean market and you have so many fundamentals in favour of Malaysia for 2007 market entry.

And finally, an added bonus in Malaysia is the fact that investors seeking a shelter from direct market exposure have real estate investment trusts, and the likes of CapitaLand’s equity funds to choose from which generally invest in a diversified portfolio of commercial, residential and mixed use developments to spread an investor’s risk.

Shanghai real estate market has experienced a robust growth since 1990s except a few downturns including the 1999 and 2005 dips. Shanghai is generally considered to be a better performer in keeping its pricing during downtime, but Shanghai property sales had also experienced a significant decline during the second half of 2008. Shanghai, however, begins to show signs of improvement and seems to lead this sector to stabilization. Although with declining prices from the peak, it has shown an impressive rebound in new and exiting home sales. The government’s 4 trillion yuan, or $585 billion, stimulus plan will help mobilize private-sector investment in sectors such as real estate, although it relies mostly on government-led infrastructure investment. Given the high housing inventory level in most cities, a rebound in trading volume by no means means an instant price catch up. Time will be needed for adjustment for the real estate industry. Investors and home buyers are never too far away. After a period of waiting and observing, some start to see opportunities and dive in this market. Real estate is key to revival of the world’s third largest economy. Shanghai, China’s largest city and the eighth largest city in the world with several thousands of skyscrapers and its distinguished architecture, is in particular, the source of consumer confidence. A decline in Shanghai represents major instability in the national and global markets, and tends to create negative ripple effects.

Regardless of the current economic slowdown, the Shanghai banking regulator reinforced the second home requirement rule, reiterating that buyers must put at least a 40% down payment for purchasing a second home. This shows government’s disciplined approach in stimulating the real estate market. In general, the government makes lands available for sale primarily through auctions. The companies that purchase the lands will be responsible for building properties and selling the properties to the public. The residents will hold seventy year long property ownership.

Under the current policies, foreigners are entitled to one property if they have worked and lived in Shanghai for at least a year. Besides the residency requirement, they must purchase property only for their own use and can not lease it to others. Shanghai property transaction centers can make up own rules on trading on the basis of these policies, according to Shanghai Municipal Housing, Land and Resource Administration Bureau, and rules and implementation time could vary by district. Restrictions that were imposed on foreign investors from investing in the first tier cities like Shanghai have not been released, but real estate opportunities in the second and third tier cities or Shanghai nearby cities such as Hangzhou, Suzhou, Wuxi, are either open, or not as restricted. One thing to note is that overseas institutions and individuals that have set up a company in China may purchase property for purposes other than their own use. Regardless of economic and market conditions, Shanghai, with its unique historical background, rich cultures and vibrant growth, continues to attract people from all over the country and all over the world.

One of the main advantages that are offered by Bangkok real estate is the price arbitrage that can be availed of by investors in the property market in this South East Asian country. The prices of a Bangkok house for sale or a Bangkok condo is only a fraction of what it would cost to buy a similar property in developed economies. In some situations, you can get yourself a property in a new development that is being promoted by Thai businesses. The advantage in such a real estate transaction is that you may be able to get attractive discounts on the sale prices of properties in the Bangkok real estate market.

Foreign citizens who are interested in real estate investment Thailand have to be aware of the local property laws to profitably invest in the property market in this country. The laws governing the sale or transfer of property in Thailand are set up with the express purpose of protecting the interests of their citizens and also to prevent the inflationary pressures of an unregulated real estate market.

What this means for the international investors is that they have to get a thorough understanding of the Thai property laws with a special emphasis on the interests of foreigners in the property investment transactions. It may be good move to engage the services of Bangkok estate agents to advise you on the legal aspects of the property transactions in Thailand.

One of the safer ways to invest in Bangkok real estate is to set up a company in Thailand, as you would then be able to get over the restrictions imposed on foreigners to invest in the Thai real estate market. The Bangkok estate agents are perhaps the best point of contact that you – as a foreign individual investor – can entrust the task of engaging a lawyer to complete the necessary formalities to start a new company in Thailand as a precursor to your property investments in this country.

The Chinese government are also keen to attract foreign investment into their country and began easing many restrictions to smooth the path for those interested in purchasing property in China back in 1998. Their efforts to boost their economy through the promotion of foreign direct investment proved almost too successful and resulted in the government fearing that speculators would strip the property market of stability. As a result the Chinese government have now made it more difficult for investors to realise short term gains from the property market.

In terms of foreigner’s rights when it comes to owning real estate in China, all overseas buyers are protected by Chinese law but actual real estate law and the property buying process in China are new concepts that are relatively immature and unsophisticated. This means that investors who wish to buy property directly in China need to secure the services of a reputable lawyer to assist with the intricacies of the real estate purchase process.

For those who wish to maximise the potential gains available in Chinese property but who wish to remain relatively hands off any investment made, there are a series of property investment funds specialising in Chinese real estate now available. Such funds issued by larger, well established financial institutions are proving increasingly popular with both local and international investors. Such real estate investment funds allow an investor to gain access to the potential of the property market in China without having to commit significant sums of money directly to the market.