Luwan district bars foreign land bids

Foreign investors have been banned from bidding in land auctions by Shanghai's Luwan district government, amid claims that overseas buyers are causing property prices to spiral out of control.

While foreign investors are to be permitted to buy into some land plots in the district, they are believed to have been banned from bidding for two prime sites in Luwan already.

The South China Morning Post (SCMP) has reported that the move may also be copied in the country's other 'first-tier' cities where local investment supply is abundant. However, similar rulings are unlikely to come into effect in second and third-tier cities in need of foreign money.

“It is not about protectionism”, said Yi Xianrong, a professor at the Chinese Academy of Social Sciences. He continued, “It is about the livelihood of the people. For many, property has become unaffordable, and foreign investment will further push up the prices.”

DSR launches $52,000 Makati units

Overseas property investment company David Stanley Redfern Ltd (DSR) has added Makati in the Philippines to their portfolio with the launch of the Lancaster Atrium Towers skyscraper project.

The Philippines has become increasingly attractive to overseas buyers with GDP rising at over five per cent year-on-year. The strength of the Filipino peso has been another key factor; appreciating an impressive 20 per cent against the US dollar since de-pegging just 12 months ago. DSR predicts that units in the development, which start at ฃ26,000 (US$52,000), will give buyers a 12 per cent rental yield.

The fully furnished, fully managed apartments include fixtures, fittings, furniture and all dressing items such as tableware, glassware, bedding, cutlery, all of which are seen as key to securing immediate rental income. Foreign investors can own units in the Lancaster Atrium on a freehold basis and interest free credit available. DSR works with developers in more than forty countries worldwide.

Hunan to get new villa development

China's Hunan province is to become home to a new US$15m resort and villa development after Sino Express Travel and Eversun agreed a deal to acquire a 200,000 square-metre premium land site in the region.

The developers have high hopes for the land plot which is sited near picturesque Lake Dongting and within walking distance of a substantial commercial district.

The News Observer reported that development plans for the 200,000 square-metre land site are divided into three phases, namely, a phase one villa development, a phase two sports/recreation complex and a resort and hotel tower development in phase three.

Sino Express will add the development to its Chinese portfolio, which already includes a beach front property in Silver Beach on Hailing Island in Guangdong province. However, Sino's new Lake Dongting development will be considerably larger than its 50,900 square metre Silver Beach project.

Trillions flow into Middle East tourism

A study has found that a massive 13.33 trillion dirhams ($3.5 trillion) has been invested in the Middle East's growing tourism industry to date.

The research, carried out by Fast Future and Global Futures Foresight, found that the funds have been focused on building new hotels and leisure projects, developing aviation, supporting infrastructure and promoting tourism.

Investment in the region looks likely to continue with a further 900 new hotels due to open their doors in the coming years, at a cost in the region of $570 billion.

The Khaleej Times has also reported that a project may soon be launched which would see Dubai being home to the world's largest airport; raising its current capacity to accommodate 120m passengers a year.

Lawrence Hunt, chief executive officer of Silverjet, said that the Middle East is an increasingly important region for luxury travellers in particular. ดThis report highlights how rapidly the travel and Tourism market in the region is developing and emphasises the importance of the high-end segment,ด he said.

Vietnam growth 'best in ASEAN’

Vietnam has the fastest growing economy in the Association of Southeast Asian Nations (ASEAN), Singapore's prime minister claimed this week.

Lee Hsien told Thanh Nien, “Vietnam is a very good example of how countries can narrow the development gap by opening up their economies and linking up with others in the region.” He added that the nation has the potential for further growth if it continues to draw foreign investment.

Singapore is the Vietnamese economyดs single biggest investor and the prime minister claimed that “as long as Vietnam continues to press forward with reforms, international investors will continue to see opportunities”. He described Vietnam as a positive role model for other ASEAN members and said it is a "priority market" for Singaporean investors.

Thailand and Cambodia's Foreign Ministers have announced details of an agreement which will allow overseas visitors to apply for a visa to either jurisdiction, and then use the document to travel to both countries.

Cambodian Foreign Minister Hor Namhong said on Monday, “This means a tourist can get a visa either for Thailand or Cambodia and can visit the two nations,” after unveiling the agreement with his visiting Thai counterpart Nitya Pibulsonggram.

Hor Namhong added that the move could be just the first in a planned series of agreements which will also involve Myanmar, Laos and Vietnam. “We want to see the five countries become one tourist destination,” Hor Namhong said.

UK Reuters reports that Thailand is aiming to have 15 million foreign tourists this year. Cambodia meanwhile, recorded 1.7 million visitors last year, most of whom visited the ancient Angkor temples. Earlier this month, Air Finland began the first commercial direct flight between Europe and Cambodia, where the tourism industry is growing by 25 per cent per year.

Philippines tourists hit 3m mark in ’07

The Philippinesด tourism secretary has hailed 2007 as a breakthrough year for the Asian countryดs tourism industry, with foreign visitor numbers tipping the three million mark for the first time.

Joseph Ace Durano told a Manila press conference last week, “Before last year, tourists in the country only numbered 1.7 to 1.9 million.” He added that his department focused on tourist-rich markets in North Asia such as Korea and China, with strong results. The Philippine Daily Inquirer reported that the industry was worth an estimated US$4.8 billion to the countryดs economy in 2007.

“We are targeting the same markets this year, but with more emphasis on value rather than volume,” Durano continued. “Europeans stay for two to three weeks in the country, spending more than other tourists who stay here for only a number of days.”

Durano said that for 2008, the department would be focused on the opening of new projects and properties such as hotels and residential developments.

China to maintain state ownership of farmland

China will not end the decades-old policy on rural land ownership, which says that rural land is collectively owned by villagers instead of individual farmers, since the rule "meets the requirements of Chinese farmers for development."

"China has chosen it, due to a historic lesson," said Zheng Xinli, deputy director of the Research Institute of the Communist Party of China (CPC) Central Committee, on Wednesday. Zheng spoke at a press conference sponsored by the Information Office of the State Council, which invited the senior researcher to help explain interesting points in the Report of the 17th National Congress of the Communist Party of China (CPC).

Zheng told reporters that private ownership of land had persisted for thousands of years in China's feudal period, which had resulted in the fact that rural land turned out to be mostly owned by landlords, while peasants were impoverished and lost everything if they lost their land.

"It is the historic lesson," said Zheng, "China's socialist system and the Constitution have ensured the collective ownership for rural land." Under the Property Law, houses owned by Chinese farmers legally belong to them. But farmers do not own farmland, although they have the right to use and manage it.

Singapore office rentals hit record highs

Singapore's office rents soared in 2007 due to a slow-down in the amount of new office space coming on line and an increase in office developments closing either permanently or for renovations.

Propelled by the expanding financial and business services sector, office occupancy tipped 95 per cent across the island. Office rentals escalated across Singapore and have all breached historic highs

Only a modest 341,180 sq ft. of new office supply came on stream in 2007, which contrasts sharply with the 1.02m sq ft. taken out of the market due redevelopment, addition or alteration. This aggravated the office supply crunch, especially in the CBD.

Tight office supply is expected to continue until 2010 when the massive Marina Bay Financial Centre (MBFC) phase one is completed. Meanwhile for the next couple of years, the market will have to contend with limited supply from completions of smaller office projects.

Asia Property Report online (www.property-report.com) is a real estate news and information web portal updated daily.