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Sansiri, Thailand’s leading property developer, hosted a dinner event for its clients in Hong Kong. The event was hosted on a private rooftop garden in The Park Lane Hotel and celebrity chef, Peter ‘Sintana Pitakwong’, a Bangkok born Chef with more than 18 years of culinary experience both in Thailand and abroad, was invited specially to provide a custom-made menu

Around 70 of Sansiri’s esteemed customers attended the event and were treated to a selection of modern Thai dishes, specialty drinks, and a lucky draw with complimentary nights at Sansiri’s hotels in Khao Yai and Hua Hin.

Above: Attendees were given a souvenir to commemorate the evening at Sansiri’s “photo-booth”

Above: Chef Peter (right) was specially invited to curate a selection of modern Thai dishes

Above:The lucky draw winners won complimentary hotel nights at Sansiri’s hotel in Khao Yai or Hua Hin, (Cobby Leathers, Head of International Marketing of Sansiri(left), Terence Chan Director of Golden Emperor (right)

Above:The number of Chinese investing in Australian property will not decline.

The number of Chinese investing in Australian property will not decline but the pace of their investments will slow, say property experts.

The structural changes and slowdown in the Chinese economy, Beijing’s tough stance on corruption and capital control, and fewer cheap deals, are forcing the Chinese to rethink the timing of their investments in Australia, Savills and JLL in Hong Kong said.

“They are taking stock but they are not putting the brakes on. It is simply a deferral – a “wait and see”,” Savills Hong Kong’s senior director Simon Smith said.

“It’s not a long-term trend. They certainly grabbed the opportunities when they were there, but there are limits.”

In 2013-14, China overtook the United States as the largest foreign investor in Australia at $27.7 billion, said the Foreign Investment Review Board. Property investments accounted for nearly half of that at $12.4 billion.

But a recent note by Credit Suisse’s analysts Damien Boey and Hasan Tevfik said Chinese demand for global property, including Australia, had fallen in 2015.

JLL Hong Kong’s head of research Denis Ma disagreed. “Investments will moderate not fall.”

He said the Hong Kong example demonstrated the Chinese would “find a way around a barrier”, albeit slowly.

“When Hong Kong imposed a 15 per cent transaction tax on foreign investments, it did not deter the Chinese. You still see them in the market,” he said.

Above: Hong Kong imposed a 15 per cent transaction tax on foreign investments, it did not deter the Chinese.

Institutional players such as property developers and conglomerates which have a presence in Australia such as Dalian Wanda, Country Garden and Greenland, go to Australia to diversify their businesses.

Sinking all their money into China is putting all their eggs into one “emerging market” basket, Mr Smith added.”They want investments in deep, mature, liquid cities such as London, New York, Sydney … to diversify risks.”

“They will pay the money. They are pretty thick-skinned but their problem is availability. When they see less availability, they will refocus.”

Country Garden which builds mega-townships in southern China and is building apartments in Sydney and Melbourne, sets aside an overseas investment budget.

“The government encourages us to take our capital out,” chief financial officer Wu Jianbin said.

Above:Wu Jianbin said the government encourages us to take our capital out. (Photo from South China Morning Post)

But Mr Wu said Country Garden will develop in Australia cautiously, focusing on the main markets of Melbourne and Sydney.

Other companies such as the state-owned property enterprise, China Vanke, have instead decided to hold off development in Australia, sources have said.

Retail investors also want to buy property in Australia but Beijing’s push to stamp out corruption is slowing them down.

In late September, China’s central government tightened restrictions on cash withdrawals from foreign ATMs in an attempt to prevent capital outflows.

“Folks taking money out of China are not so much concerned about the housing market cycle, they are more concerned about getting money out. Besides, Sydney looks cheap compared to its nearest overseas market, Hong Kong.” Mr Ma said.

Above:Country Garden will develop in Australia cautiously, focusing on the main markets of Melbourne and Sydney.

While a slowdown is expected, the new year will see fresh Chinese interests in hotels and intellectual property, Mr Smith added.

CBRE Asia-Pacific’s executive chairman Rob Blain said there could even be new players such as “powerful second-tier Asian family investors looking for core, prime assets”.

“Chinese investment overseas will be a fact of life for the next 20 to 30 years,” Mr Smith said.

Source: Australia Financial Review

Above:UK real estate growth is currently strongest in regional markets, with Manchester leading the way. So what’s making the north-west a key investor hotspot?

For international investors, buying property in the UK has traditionally meant buying property in London.

The sustained growth of the capital’s prime real estate made it the logical investment location. The average property price in London in January 1995 was £126,295. By June 2015, this had risen to £611,340 in June 2015, representing a 384% return on investment.

Now, however, things have changed.

UK property assets have appreciated by 10% in the last 12 months. Yet it has been regional cities that have contributed most to this growth, with London’s house price inflation standing at just 5.2%.

Nowhere has this regional growth been felt more than in Manchester. Just this week Knight Frank reported that Manchester had seen commercial office investment sales in the third quarter of 2015 40% above the five-year quarterly average. Economic growth in the area, creating thousands of new jobs, means that businesses in the region desperately need new office spaces, prompting such high levels of investment.

Above:UK property assets have appreciated by 10% in the last 12 months.

It is performance that’s being mirrored in all of the city’s property sectors. So what’s making Manchester the epicentre of regional UK real estate investment.

1. A CITY AT THE START OF A GROWTH CURVE

Investing in a market on the brink of huge growth has the potential to reap big rewards. Just ask an investor who bought in London twenty years ago.

This curve underlined just how important it is to notice emerging markets and acquire assets early. But London is now reaching the end of this cycle, with Knight Frank noticing a fall in interest for real estate in the city from key international investor communities.

All evidence points to Manchester enjoying a similar type of growth curve seen in London over the next few years. Sustained job growth is driving the large-scale investment in the city’s commercial property sector – and these workers also need a place to live.

Manchester has been named by HSBC as the UK’s number one city for property investment, boasting yield growth almost 13 times the pace of those in London in recent years.

Manchester has also enjoyed 18% capital growth in the last 18 months. With an outlook of sustained economic investment, a growing population and shrinking supply of property, prices are expected to grow by a further 22.2% in the next three years.

And this is just the start.

Above:New devolved powers, high-speed rail links and enterprise zones with favourable tax conditions are just a few of the planned projects that will drive the economy of Manchester.

2. 7 BILLION REASONS TO INVEST

Manchester is one of the core cities at the heart of the UK government’s Northern Powerhouse plans.

£7 billion worth of investment is planned for the region, as Britain attempts to rebalance the economic power of the country away from London. New devolved powers, high-speed rail links and enterprise zones with favourable tax conditions are just a few of the planned projects that will drive the economy of Manchester, bringing more visitors and creating new jobs.

Last month Chinese president Xi Jinping visited Manchester and announced a £4 million construction project kick started by Bejing Construction and Engineering Group (BCEG), as well as unveiling a new direct flight route from Beijing to Manchester with Hainan Airlines, which will begin service in 2016.

Such sustained economic investment will naturally impact on Manchester’s real estate market.

Above:Last month Chinese president Xi Jinping visited Manchester and announced a £4 million construction project

3. A YOUNG POPULATION THAT NEEDS A PLACE TO LIVE

It’s a city that people want to be part of. Manchester’s population is rising at three times the national average, yet it’s a city with one of the lowest levels of housing stock in the country.

What makes this imbalance more profound is the demographics of the population. Manchester is home to 60% more 25 to 29-year-olds than the rest of the UK. With changing attitudes towards homeownership in Britain and forecasts predicting that over 50% of 20 to 39-year-olds will be renting their property for 2025, Manchester’s population is seen as a ‘golden demographic’ in the eyes of many investors.

Source: Select Property

Above:Queensland has seen a bump in property confidence over the last quarter.

Build it and they will come, make it more affordable than Sydney and Melbourne, and they’ll grow in confidence.

Queensland has seen a bump in property confidence over the last quarter, jumping another two points to 132 on the confidence index in the latest ANZ/Property Council survey, two points above the national average and well ahead of the 100 neutral score.

Queensland Property Council Executive Director Chris Mountford was pleased with where the Sunshine State fell, but felt there was “plenty of room for improvement”.

“With a 12-point gap in confidence levels between Queensland and New South Wales, it is clear that more needs to be done in Queensland to achieve favourable regulatory settings,” he said in a statement.

Mr Mountford said the state government delivering on its “key economic initiatives”, such as new planning legislation, a new State Infrastructure Plan and a new south-east Queensland regional plan, all due in the next six months, would help bolster further confidence.

“The government’s success in delivering these key strategic initiatives will shape industry confidence over the next few quarters,” he said.

“Given that property is Queensland’s biggest industry, providing 240,000 jobs across the state, these reforms must be priorities 1, 2 and 3 for the government.”

“A more confident property industry will translate directly into more jobs, greater prosperity and stronger communities right across Queensland.”

Treasurer Curtis Pitt said it was positive news for the state.

Above: Property is Queensland’s biggest industry

“It’s very encouraging to see confidence in the Queensland property industry is on the rise,” he said.

“The Property Council acknowledged that our positive economic policies are one of the key factors behind this increased confidence.

“They specifically cite the Palaszczuk government’s new planning legislation and the SEQ Regional Plan and new State Infrastructure Plan, which are both being developed, as contributors to the confidence boost.”

The Opposition’s Tim Nicholls also welcomed the news – but put it down to economics.

Above:There is a value proposition in Brisbane and Queensland which is encouraging people to invest here.

“I think what we are seeing, what is occurring in Sydney and Melbourne, as the prices there are reaching their peak, (is that) people are looking for a value proposition and there is a value proposition in Brisbane and Queensland which is encouraging people to invest here,” he said.

Source: Brisbane Times

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