News

Above:House prices see unexpectedly large hike in August, according to Halifax.

House prices shot up by 2.7% in August, according to the Halifax, the highest monthly rise since May 2014.

The surprise leap contributed to a 3% rise in prices over three months and annual house price inflation of 9%. The average house price now stands at £204,674, according to the lender.

“The shortage of secondhand properties for sale on the market is resulting in upward pressure on house prices,” said Martin Ellis, Halifax housing economist.

“At the same time, economic recovery, real earnings growth and very low mortgage rates are supporting housing demand.”

The August figure has taken some analysts by surprise and has caused the second group of leading economists in a week to revise their house price forecasts for 2015 upwards.

Howard Archer, chief economist at IHS Global Insight, described Halifax’s August figure as a “real eye opener”, especially when compared to that of rival Nationwide, whichrecently reported that house prices rose by a modest 0.3% in August.

In stark contrast to the Halifax, Nationwide said the annual rate of house price growth was the weakest for two years in August.

IHS Global Insight has now changed its prediction on house price growth for 2015, lifting its forecast to 7% from 6%.

“Latest data and survey evidence largely indicate that housing market activity is on the up, and we suspect it will be supported over the coming months by largely helpful fundamentals, notably including stronger earnings growth, high employment, elevated consumer confidence and still very low mortgage interest rates,” Archer said.

On Thursday, the Royal Institute of Chartered Surveyors announced it had changed its forecast for UK house prices, predicting they will end the year 6% higher than they started it. At the start of this year it predicted growth of3%.

“House price inflation has now quickened in each of the last seven months following a sustained period of easing towards the latter half of 2014,” said Rics’s chief economist, Simon Rubinsohn. “And there is good reason for this trend to be sustained into 2016.”

Source: the guardian

Above:UK named among top global locations for property investment

Strong economic growth and significant undersupplies of new housing stock makes Britain one of the best places for high property returns.

Summary:

• The UK has been named by Savills as the fourth best place in the world to invest in residential property
• Britain’s well documented housing shortage, coupled with strong economic growth, means that the country sits just behind the USA, UAE and Singapore when it comes to making returns on property investment
• Investors have long been attracted by the UK property market’s stability, diversity and track record of growing returns

The UK is currently among the world’s hotspots for residential property investment.

Thanks to record low levels of new housing stock and strong economic growth, Britain is currently the fourth best place in the world to make a return on rents and increasing property values, according to new research from Savills.

The results used economic performance and growth prospects alongside population growth to calculate the strength of a property investment against a backdrop of low supply and a sustained demand for rental accommodation.

Property prices in the UK have increased by 20% in recent years, while the growing preference among Britons to rent property means that, by 2025, it is forecast more people will be renting property in the UK than owning it.

Yolande Barners, Director of Savills World Research, said: “When a growing population, growing affluence and limited housing or land supply converge, we would anticipate real house price growth.”

The UK has long been a popular destination for overseas investors, enamoured by returns in a strong currency, political and economic stability, and a diverse product range. Its appeal has been particularly profound in recent weeks, with the equities crisis in China following Black Monday and currencies such as the South African rand falling to record lows against the British pound, highlighting the attractiveness of a British real estate asset.

Source: Select Property

Above:Uthai Uthaisangsuk, Sansiri’s executive vice president, said that 60 per cent of the condos have already been sold.

There are panoramic views of the island with glimpses of the sea from the 14th floor of Sansiri Plc’s recently completed, mid-rise condominium The Base Height-Phuket, making it something truly special.

With the starting price of a 30-square-meter unit, including all transfer expenses at the Land Office,  during a promotional period, this high-class condominium in the center of Samkong is easily obtainable.

While the infinity-edge pool and roof-top garden are beguiling, there is also a lawn with a big pool on the ground floor for residents of the 358-unit building.

Uthai Uthaisangsuk, Sansiri’s executive vice president, said that 60 per cent of the condos have already been sold, with two of the three designs still available.

Above:The 29sqm to 34sqm one-bedroom units are the only options left for property buyers.

Though the 29sqm to 34sqm one-bedroom units are the only options left for property buyers, the two show units are well-planned and attractively decorated.

“Most of the customers interested in this project are doctors and nurses who work in hospitals in the Samkong area,” Mr Uthai said.

This is Sansiri’s only mid-rise on Phuket, though it has already built more than 10 condominiums on the island. This is due to regulations preventing buildings from being higher than 23 meters in other locations.

Above: The infinity-edge pool and roof-top garden are beguiling

It is also the island’s third ‘The Base’ brand condominium, with the first two being The Base Uptown on the Bypass Road and The Base Downtown in Phuket Town.

“Normally in Bangkok, The Base is a high-rise building. It’s only in Phuket that we are limited to building eight and 14 storey buildings.”

Sansiri has also unveiled a ‘Plus Concierge’ service, run by its subsidiary Plus Property Company, which includes a host of choices on top of the essentials to make life really easy.

Like in a hotel, residents can book rooms in spas, tours and limousine service to and from the airport. It also offers drinking water and bill payment services.

Phuket can expect more developments by the well-known listed developer.

Above:The Base is a high-rise building. It’s only in Phuket that we are limited to building eight and 14 storey buildings.

Mr Uthai confirmed that his company stands firm on what it said when it first arrived here – that it is going to be here for a long time.

“Sansiri has many classes of property, including single-detached houses and townhouses. In Phuket, we have our Burasiri single-detached housing project… We have developed a total of 15 projects here.”

Despite the upbeat mood amid this elegance, one can hardly forget that the Thai economic growth is sliding. The Bank of Thailand recently lowered its GDP forecast for 2015 to less than 3 per cent because of worse-than-expected performance in the export sector.

However, Mr Uthai optimistically hopes that things will improve in the rest of the year’s third and fourth quarters, as he thinks the economy has already hit bottom.

“If the government spends money on infrastructure in the third and fourth quarter, they could stimulate investment and I think the economy might pick up.”

Source: Phuket Gazette

The baht yesterday slipped beyond the 36-mark against the US dollar to hit a six-and-a-half-year low, tracking retreats of other regional currencies as investors bet the US Federal Reserve will lift its near-zero interest rates this month.

The Thai currency sank to its lowest level since March 2009 to 36.11/36.13 from 35.84/35.86 last Friday.
The baht has fallen by nearly 3% in the past month and almost 10% this year.

Malaysia’s ringgit dropped to a new low. It weakened 1.7% to 4.33 to the dollar in Kuala Lumpur after earlier falling to 4.3405, the lowest level since January 1998, when it reached a record 4.885. The ringgit has plunged 21.8% this year. Indonesia’s rupiah fell the most in two weeks to 14,246 to the dollar. It has lost 13% this year in Asia’s worst performance after the ringgit, according to Bloomberg.

The dollar also strengthened versus the South Korean won, the yen, the yuan, the Singapore dollar and the Philippine peso. Fed policymakers will meet in the middle of this month to decide whether to raise interest rates for the first time in nearly 10 years. Investors have been predicting a US rate hike as early as this month, but growing concerns over China’s cooling economy could delay the Fed’s decision.

Bank of Thailand spokesman Chirathep Senivongs Na Ayudhya said the baht’s depreciation was in line with the weakening trend of other regional currencies, as financial markets expect the Fed could begin normalising its funds rate this month following mixed jobs data detailing how the US unemployment rate has declined to 5.1% and hourly wages have increased on average.

A foreign exchange dealer at Bangkok Bank said the baht’s weakness followed the trend of other weakening currencies in Asia such as the ringgit, rupiah and won. The looming rate hike by the Fed on the back of lower US unemployment and improved wages coupled with uncertainty about China’s economic slowdown inducing downward pressure on regional currencies and prompting an increase in US dollar purchases are seen as factors causing the baht to depreciate, the dealer said.

The domestic political development of the National Reform Council voting to reject the draft charter is not considered a main factor influencing the weaker baht since other regional currencies have also depreciated following external developments.

The baht could sink to 36.50 by year-end due mainly to external economic factors in China and the US, the dealer added. Kasikornbank earlier said the baht was expected to weaken to 36.25 against the greenback by year-end.

Source：Bangkok Post

Manchester is the second most popular location in the UK for direct international investment due to various factors including being an education hub with a myriad of secondary and tertiary options, containing a strong youth labor force, having a high concentration of population (approx 50%) located in the vicinity of the CBD, and developing regeneration projects such as MediaCityUK and Spinningfields. In the coming years, corporations such as BBC, ITV, HSBC, Barclays, and other international conglomerates will be moving in to Manchester; which will consequently drive up the property sale and rental prices.

Golden Emperor Properties hosted an event about investing in the UK’s Second City. Riverside, an upcoming development situated in between the CBDs of Spinningfield and MediaCityUK was showcased, and over 260 clients attended.

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Above: Hong Kong investors attended to learn more about investing in Manchester

Above: Terence Chan, Sales Director & Partner of Golden Emperor provided a presentation on investing in Manchester

Above: Investors who attended the exhibition were given an opportunity to invest in Riverside

Above: The building model of Riverside, a project situated in between the CBDs of Spinningfield and MediaCityUK