Ho Chi Minh City remains one of the most attractive markets for real estate development in the Asia Pacific region..Ho Chi Minh City 16 December 2009 – Real estate markets in the Asia Pacific region are holding up “surprisingly well” in the aftermath of the global recession compared to markets in the United States and Europe, according to the Emerging Trends in Real Estate® Asia Pacific 2010 report published by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP (PwC).
The report provides an outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. It is the fourth Asia Pacific edition of the highly regarded Emerging Trends in Real Estate® annual investor survey. The report is based on the opinions of more than 270 internationally renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.
In terms of investment prospects, Shanghai, Hong Kong and Beijing rank first, second and third. These cities were ranked 5th, 3rd and 12th respectively last year. Ho Chi Minh City is ranked 13th, maintaining its position from 2009 (13th). The Development prospects in Ho Chi Minh City remain very high, overall it is ranked 3rd after Shanghai and Mumbai.
Since the onset of the global economic meltdown, asset markets in the Asia Pacific region have fared better than those in Europe and the United States, the report states. While both pricing and rentals in the region fell steeply in 2008 and early 2009 in step with those in the West, markets across the Asia Pacific region have been lifted in the second half of the year by the remarkable resilience of the Chinese economy, which has been buoyed by a series of fiscal and monetary stimulus measures.
As a result, many Asian markets have begun to flash positive signals toward the end of 2009. Transaction volumes have rebounded, albeit from a very low base and led overwhelmingly by China.
“Pricing has improved across the region. While the upturn has been modest in most cases, moves have been substantial in some asset classes and geographies, especially in China. Chinese cities dominate the rankings this year, which is a reflection of a remarkable resurgence in Chinese commercial real estate as the government-mandated liquidity boom lifts markets across the country.” said KK So, PwC Real Estate Tax Leader for the Asia Pacific region based in Hong Kong.
In spite of a stalemate between buyers and sellers in some markets, and significant rent fluctuations, Asia has in general experienced both an increase in transaction volume and higher property prices – with a large part of the upturn occurring in China, the report notes. Unlike the prevalence of distressed sales occurring in the U.S. and Europe, distressed sales in Asia have been relatively minimal.
City Development prospects - 2010
Rank / City
3 Ho Chi Minh City
4 New Delhi
10 Hong Kong
12 Kuala Lumpur
Development prospects in Ho Chi Minh City 2010 and 2009
|Rank||Buy recommendations||Rank||Buy recommendations|
|Residential (rental) apartments||7th||36.2%||1st||36.6%|
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The Urban Land Institute (www.uli.org) is a global non-profit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 34,000 members representing all aspects of land use and development disciplines.