SecondQuarter2010AsiaPacifcPropertyDigestOnPoint?AsiaPacifcPropertyDigest?SecondQuarter20103DearReader,PropertymarketfundamentalscontinuetoimproveacrossAsiaPacifc,underpinnedbystrongereconomicconditionsandbusinessconfdence.Takeupofspaceisstrengtheningandmoremarketshavemovedtotheupturnphaseoftherentalcycle.Capitalvaluesstartedtorecoverearlierthanrentalsandarenowincreasinginmostmarkets.FeaturecommentariesinthiseditionoftheAsiaPacifcPropertyDigestincludeaninauguralarticlebyAlastairHughes,AsiaPacifcCEOforJonesLangLaSalle,aswellastopicalarticlesonthepropertymarketsinChina,Seoul,BangkokandAustralia.Inadditiontoourregularmarketcoverage,featuredmarketsthisquartercompriseOsaka,QingdaoandPuneoffce;Manila,PuneandWellingtonretail;andTaipeiindustrial.IhopeyoufndthiseditionofvalueinnavigatingthedynamicrealestatemarketsofAsiaPacifc.Asalways,wewelcomeyourfeedback.Regards,DrJaneMurrayHeadofResearch–AsiaPacifcFeatureArticles Retail AsiaPacifcEconomyandPropertyMarket 4Beijing 41Shanghai 42AsiaPacifcCEOCommentary 8Guangzhou 43NorthAsia 10HongKong 44Bangkok 45GreaterChina 12KualaLumpur 46SouthEastAsia 14Singapore 47Australasia 16Jakarta 48Manila 49Offce DelhiNCR 50Tokyo 18Mumbai 51Osaka 19Bangalore 52Seoul 20Pune 53Beijing 21AustraliaSub-Regional 54Shanghai 22Auckland 55Guangzhou 23Wellington 56Qingdao 24HongKong 25Residential Beijing 57Taipei 26Shanghai 58Bangkok 27HongKong 59HoChiMinhCity 28Macau 60Manila 29Bangkok 61KualaLumpur 30KualaLumpur 62Singapore 31Singapore 63Jakarta 32Industrial DelhiNCR 33Tokyo 64Mumbai 34Beijing 65Bangalore 35Shanghai 66Pune 36Guangzhou 67Sydney 37HongKong 68Melbourne 38Taipei 69Brisbane 39Singapore 70Auckland 40Sydney 71Melbourne 72Coverpicture:BankofChinaTower,HongKong4OnPoint?AsiaPacifcPropertyDigest?SecondQuarter2010AsiaPacifcEconomyTheRegionContinuestoOutperformDrJaneMurrayHeadofResearch-AsiaPacifcTheregionaleconomycontinuestoenjoybroad-basedgrowthingrowththepreviousquarter.Thecentralbankcurrentlyexpectsthebothdomesticandexternalsectors.Strongerdomesticconditionseconomytogrowby5.9%in2010.arefeedingthroughtoemploymentgrowthinanumberofcountriesSingapore:PreliminarydatafromAprilandMayindicatesthatincludingHongKong,Singapore,SouthKoreaandAustralia,whiletheSingaporeeconomymayhavegrownbyaverystrong19.3%inChina,urbanemploymentincreasedbyaround5millionin1H10.y-o-yinthesecondquarter,mainlyduetoasharpexpansionintheOntheotherhand,labourmarketconditionsremainweakinJapan,manufacturingsector.Thegovernmentnowexpectsitseconomytowhereaquarterofamillionjobshavebeenlostinthefrsthalfofthisgrowbybetween13%and15%in2010,amajorupwardrevisionyear.Ontheexternalfront,worldtradevolumeshavecontinuedtofromitsearlierforecastof7%to9%.strengthen,andinMaywerejust3%belowthepeaklevelreachedinApril2008,accordingtoCPBNetherlandsBureauforEconomicHongKong:RealGDPgrewby8.2%y-o-yin1Q10duetoPolicyAnalysis.ongoingstrengthinthetradesectorandconsumerspending.Thegovernmentexpectsitseconomytoexpandby4to5%in2010onTheregionisfacingsomeheadwinds,however,withmixedsignalsbroad-basedstrength.regardingthehealthoftheglobaleconomy.WithinAsiaPacifc,infationarypressureshavebeenbuildinginsomecountriesandthereisamajorfocusonChinaasitmanagesitsgrowthslowdownFigure1:RealGDPGrowthtomoresustainablelevels.1210Broadbasedgrowthacrosstheregion8China:RealGDPgrowthslowedto10.3%y-o-yin2Q10from611.9%y-o-yinthepreviousquarter.Whileexportscontinuetogrow42strongly,climbingby43.1%y-o-yinthefrsthalfoftheyear,othery-o-y(%)indicatorshavestartedtoslow.ThelatestPurchasingManagers’0IndexforJulyshowsthatindustrialproduction,whilestillexpanding,-2hasslowedconsiderablyoverrecentmonths.Followingtightening-4measuresbythegovernmentinApril,propertysalesvolumes-6havefallenandthemostrecentdataindicatesthattherapidrunChinaSingaporeupinresidentialpriceslookstohavecometoanend.TheStateIndiaThailand20092010(July2010Forecast)InformationCenter,agovernmentthinktank,expectsChina’sSource:GlobalMalaysiaInsightTaiwaneconomytogrowby9.5%in2010,afgureinlinewithlong-termVietnamaveragegrowth.Figure2:ConsumerSouthKoreaP