Archive for December 28th, 2009
Asia Pacific investments to double in 2010
eal estate investments in the Asia Pacific region are set to hit US$85 million in 2010, almost double the amount invested in 2009, according to DTZ.
DTZ´s research found that out of the $315 billion capital currently targeting real estate, 27 percent or $85 million, has been targeted for the Asia Pacific region.
This is almost double the $43 billion of capital transacted in the last 12 months.
“Regional investment patterns are expected to continue in line with 2009 trends, with 27 percent of capital targeting investment in Asia Pacific,” says David Green-Morgan, head of research for DTZ Asia Pacific.
DTZ´s research also found that the $315 billion capital available for investment in real estate globally in 2010 is double the $157 billion of capital transacted in the last 12 months, with the ratio of capital targeting real estate now at 2:1.
This is equivalent to $2 of capital chasing available stock compared to only $1 in the last 12 months.
“Asia Pacific and Europe are both relative winners, with more money targeting these regions for investment than they are raising and investing elsewhere,” says Morgan.
Europe took the biggest market share with 50 percent of the capital targeted for the region.
Collectively, Asia Pacific and Europe are targeted for 77 percent combined of the total investment in 2010.
However, DTZ said only 49 percent of the available money for both regions have so far been raised.
DTZ also said there are two main categories of investor for 2010, namely third party managed funds and institutions.
The third party managed funds are the largest category of investor comprising 60 percent of the market share while institutions make up 28 percent.
DTZ´s research was based on an analysis of data generated by its equity tracker, which covers capital-raising globally from a range of investor groupings.
Property Report
16 December 2009
Tourist predictions for 2010 upto 16 million
The number of foreign tourists to Thailand should reach 16 million next year as the global economic crisis and local political problems have eased, Tourism and Sports Minister Chumpol Silpa-archa said yesterday.
As well, he said, the Thai economy was showing positive signs of improvement and the Thai Khem Kaeng stimulus spending programme would be a key factor that would spur tourism.
“I think the country has already passed the worst including the airport closures in late 2008, the cancellation of the Asean Summit in Pattaya and political violence in April. It is expected that the tourism industry will clearly improve next year on condition there are no new incidents,” he said.
The minister made the comments as the Tourism Authority of Thailand (TAT) introduced Suraphon Svetasreni as its new governor, filling a post that had been vacant for eight months.
Mr Suraphon said the TAT had set its own arrivals target at between 15 million and 15.5 million with total revenues of 560 to 570 billion baht. Arrivals this year are estimated at about 13.5 million, down by 7.4% from last year.
Trips by domestic tourists are forecast to rise to 90 million with total revenue of 430 billion baht, up from 87 million trips generating 400 billion this year.
“However, the TAT will try its best to increase the number of tourist arrivals to exceed the target set by the ministry,” Mr Suraphon said.
Strategies to promote tourism next year will include waiving visa fees from March 2010 to the end of the year. The ministry also plans to develop new tourist attractions with 138 sites planned. It will also seriously promote medical tourism and try to solve problems such as illegal taxis, a frequent source of complaints. Online and social networking will be used more to promote Thai tourism as well.
Prakit Chinamourphong, the president of the Thai Hotels Association (THA), agreed with the latest arrivals estimate of 13 million for this year, saying the association had been reviewing figures and found arrivals still low, even in the current peak month.
The occupancy rate of hotels in Chiang Mai and Phuket stands at around 65%, down from 85% in a normal period, and in Bangkok it is lower than 60%.
“We think this reflects the fact that the tourism industry has not clearly recovered in December as much as we expected. We plan to talk with the new TAT governor about organising the first hotel mega-sale next year,” Mr Prakit said.