Real Estate Central

HONG KONG, May 16 /Xinhua-PRNewswire/ –

Asian REIT shares may start to offer value

REIT shares across Asian markets have taken a tumble since the onset of
the credit crunch although the last few months have seen some moderation in
the pace of decline suggesting the sell off may have reached a floor.
Japanese REITs make up the bulk of the Asian REIT market, accounting for
60% of overall market capitalization; Singapore REITs account for a further
25%. On a relative valuation basis however, Asian REITs may be starting to
offer value when compared to markets in Europe such as the UK where the
yield gap remains narrow.

US house prices and sales to continue their declines

Next week brings a further installment of data on the US housing
market. Both activity and price will be covered. Neither will be pretty.
Thursday 22nd brings data on house prices in March from the Office of
Housing and Enterprise Oversight.

The following day the National Association of Realtors Existing Home
Sales report will emphasize why the declines are occurring.

Euro area construction output to revert back to slowing trend

Euro area construction data from March is due to be released by
Eurostar on Monday 19th. After peaking at 9.5% in March 2007, annual growth
in the seasonally adjusted construction production index has been on a
moderating trend. We believe this improvement will be short lived.

Aside from waning confidence, perhaps the clearest indication yet that
construction will continue to slow is that building permits, a lead
indicator of output, are still contracting (they fell by 10.1% on year ago
levels according to the latest data).

UK housing transactions continue to slide

Official data from the Inland Revenue on the number of residential
property transactions (in English and Wales) that took place in March will
be released on Wednesday 21st.

A lack of transactional activity need not result in material drop in
house prices as long as homeowners feel under no pressure to sell.
Distressed sales, which so characterized the property market in the early
1990s, are still largely absent.

Please download from the following for the complete report content:
http://www.creativegp.com/belinda/RICSGlobalRealEstateWeekly-May16.pdf



Media enquiry, please contact:
RICS
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Email: belinda@creativegp.com


See Also

• Hovnanian Announces Debt Refinancing
• MGIC Investment Shareholders Re-elect Directors, Approve Goals Under 2002 Stock Incentive Plan and Bonus Plan and Ratify Independent Accountants for 2008
• Find a new collector’s item — antique birdcages

Source: Real Estate Newswire