WORLD PROPERTY CHANNEL ®

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  Denys Kwan, Hong Kong Realtor

  Residential, Retail and Office Properties at Top of List
• China Sees Rise for the First Time
• US and Japan Forecast to Have Biggest Increase in First Quarter 2010
• Next Heaviest Load Will Be Seen in China, Germany and the United Arab Emirates
• Fewer Listings Anticipated in Brazil, India, Hong Kong and Australia
• Quickest Rise Reported in China, Spain, Japan and Ireland
• Fourth-Quarter 2009 Buyer Interest Jumped in 21 out 25 countries

(HONG KONG, CHINA) -- Have cash, will buy. That's the newest jingle among international investors, including specialized funds and individuals, according to the latest industry survey by the Royal Institution of Chartered Surveyors based in London.

Distressed residential, office and retail properties top the foreclosure lists.  Buyer interest has soared in 21 out of the 25 countries RICS monitored in fourth quarter 2009. That interest level is up from 18 countries clocked in the third quarter.

The fastest pace of buyer interest has been noted in Spain, Ireland, United Kingdom, US and Scandinavia, in that order.

The US and Japan are set to see the biggest rise in distressed sales in the first quarter of 2010, says RICS.

Respondents in the US, Japan, China, Germany and the UAE expect to see the fastest growth in distressed sales activity.

Brazil, India, Hong Kong and Australia are more optimistic and expect fewer distressed property listings in these countries.

In the current quarter, 70 percent of the countries surveyed reported an increase in distressed sales, a slight improvement on 80 percent reporting three months earlier.

The biggest pick up in distressed sales was reported in China, followed by Spain, Japan and the Republic of Ireland.  But the pace of increase moderated across the majority of markets compared to the third quarter.

Brazil, Hong Kong, Australia and India reported a decline in the number of distressed properties coming onto the market.

Since RICS members work on both sides of any distressed property transaction, the survey asked surveyors whether the level of interest from specialist funds in distressed properties was increasing.

Levels of interest rose across 21 out of 25 countries up from 18 in the previous quarter with Spain, Republic of Ireland, UK, US and Scandinavia seeing interest rise at a faster pace.

Notes Henry Li, Chairman of RICS China:

"A biggest increase in distressed sales was reported in China in Q4 2009, although this follows on from 2 quarters of declining activity.

"China's State Council recently issued a circular detailing the eleven general guidelines laid down by the State Council on 7 January 2010, designed to stabilize property prices and increase risk management of real estate credit in the banking system.

"The level of interest from specialist funds in distressed properties in China is expected to continue to increase in Q1 2010.

The net balance between the level of the interest from the funds and the expected distressed properties coming onto the market shows the demand is rising at a faster pace than expected."

Denys Kwan, Member of External Affairs and Public Concerns Committee, RICS Hong Kong, , commented:

"Comparing statistics provided by the Rating and Valuation Department, we can see an upward trend in both rental and property prices across all three sectors including the Residential, Office and Retail markets.

A slight drop of the total number of distressed properties for sale is observed in Q4 2009, the figure continued with a sharp fall from Q4 to January 2010 as a result of continuous increase in property prices."

RICS defines a distressed property as one that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed property usually offers a price below its market value.

RICS covers all aspects of property, construction and associated environmental issues.  The organization has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 122 countries.

The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region.

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