Monthly Archives: September 2012
CBRE Secures 10 Local Accolades Across Asia in International Survey.
CBRE Group, Inc. has been named the top global real estate advisor and consultancy firm in the 2012 Euromoney Real Estate Awards. This is the fifth time in eight years that CBRE has won the prestigious award.
Euromoney, a leading international finance publication, annually surveys its readers—corporate and financial-decision makers in more than 160 countries—to identify the best advisors, developers and banks in the real estate market on a global, regional and individual country basis.
In addition to winning the overall Global Real Estate Advisor and Consultancy award, CBRE won global awards in the Valuation, Agency/Leasing and Research categories. The firm was also voted number-one advisor and consultancy firm in North America, Western Europe, Central and Eastern Europe, as well as in 18 individual countries. Overall, CBRE won 65 individual awards.
In Asia, the firm attained 10 overall country and category accolades. CBRE was named number-one overall advisor and consultancy firm in India, Japan, Korea, Singapore and Vietnam. In addition, India took home the top award for Valuation; Japan and the Philippines were named number-one for Research; and Singapore and the Philippines came in first for Agency/Leasing.
“These awards reflect the trust our clients place in CBRE and the respect of our peers,” said Brett White, CBRE’s chief executive officer. “Winning the top global accolade as well as the many regional awards reflects the consistently high caliber of our services around the world, our commitment to our clients, and our ability to deliver superior results across market cycles.”
Asian real estate investment trusts have doubled their share of property deals in the region since the global financial crisis, CBRE research claims.
REITs contribution to total Asian property investment turnover rose to 22% in the first half of 2012, from 11% in 2009, according to CBRE’s latest Asia REIT View point report.
Total investment turnover for Asian REITs reached $7bn in the first half of this year, down 14% on the second half of 2011.
Japanese and Singaporean REITs were the most active buyers, accounting for 53% and 33% respectively of acquisitions by Asian REITs since 2009.
J-REITs have been buying aggressively this year, shored up by the Bank of Japan’s Asset Purchase Program, which was extended by a further ¥ 10bn ($127.6m) in April.
Offices remain the preferred asset for investment, but most REITs preparing to float are focused on other sectors that will benefit most from growth in Asian domestic consumption, such as hospitality and retail.
J-REITs have been allowed to buy overseas assets since 2009, but have not tended to do so, in contrast to Singapore REITs. This is due to the ambiguous valuation requirements for overseas properties, argues CBRE.
The Japanese government is looking at ways to encourage J-REITs to invest offshore via special-purpose vehicles.
There are 137 Asian REITs, with a total market capitalization of $107bn and a 5.8% average dividend yield, CBRE said.
Bangkok is set to get a new grade-A mixed office development on the back of continuing improvement in demand for office space in the Thai capital. Situated on Sukhumvit Road opposite the Emporium department store, Bhiraj Tower is a 45-storey building with a total lettable area of approximately 50,000 sqm.
The building has been designed to meet international grade-A standards and will feature a column-free layout offering a 1,500-1,700 sqm floor plate, 2.85-metre ceilings, a modern lobby with double volume ceiling and a state-of-the-art security and access-control system. The tower will also feature a direct covered walkway from Phrom Phong BTS station.
Nithipat Tongpun, Executive Director and Head of Office Services at CBRE Thailand, said Bhiraj Tower is the only new grade-A office development that will be completed in the central business district between now and the end 2014. He added that as of Q2 2012, the supply of grade-A CBD office space in Bangkok totalled 1.22 million sqm while the take-up in the area soared by 10.3 percent year-on-year.
On the rental side, grade-A rents in Bangkok rose for the fourth consecutive quarter, posting a gain of 2.9 percent quarter-on-quarter and 7.9 percent year-on-year, and now are more than the previous peak in 1992. The lack of new supply and rent increasing has meant that office rentals are now rising to a level where it makes for some developers to building new grade-A developments.
Dr. Prasarn Bhiraj Buri, President and CEO of developer Bhiraj Buri Group, said: “We hope that this new landmark will add tremendous value to our community and the Bangkok skyline. With regard to the office market, we see a trend for greater demand for high-quality office spaces and facilities that genuinely support employees’ working environments and lifestyles.”
Construction has started and completion is expected in Q1 of 2014.
Modern apartments designed and furnished to an extremely high standard with large western kitchens and balconies. Well equipped units with washing machine. One of the business location in Phnom Penh with the facilities including roof top pool gym steam sauna massage and restaurant.
The increasing level of investment in new buildings in Cambodia is causing a shortage of trained building workers, according to the government and major investors.
Vice Director of the Building Department and Deputy Chairman of the Cambodian Architects Committee, Lao Tepseiha, said the extent of building investment in Cambodia is increasing this year, but is coming up against the shortage of workers.
“The owners of both small and big building projects, which need 200 to 300 workers, are complaining about the shortage of building workers”, he said, adding that there is demand for more than 18,000 or 20,000 workers per day. He noted that the lack of expert workers is especially notable.
He continues “the concept of using emigrants is not good because it could involve many risks: we would rather work with locals, so that if we have numerous building jobs they will gain skills, experience and money.”
The average income for unskilled workers is between 15,000 riel to 20,000 riel per day.
Cambodia Building Worker Confederation (CBWC) President Sovandeth said that the demand for building workers really demonstrated the shortage, while the number of building projects was growing. “The Building work growth increased 70 percent in 2012 and the lack of workers is some situations is 50 percent right now,” he added.
He went on: “there is a shortage of workers due to the low pay, causing some Khmers to go back home in the rainy season.”
Khmer immigrant workers went to Thailand, Malaysia, Korea and Japan a few years ago, but now demand has decreased after the government increased the rules and regulations governing their movement, he said.
He confirmed, “if there is low payment for a building job now, there will be a lack of workers, but if there are suitable benefits and a safe job, there will be no shortage. You need to pay less skilled workers on average $5, while skilled workers should get $10 per day”.
Assistant to the chairman of House Building Investment Co, Nget Piseth said “Our Company lacks less skilled workers because of procedures to provide a place for workers to stay who work in our company”.
Ky Real Estate Company CEO Soun Seap said “it is unlikely there is a lack of workers within each housing project. When they start working they usually have enough workers but I know there can be lack of workers for those projects with small budgets,” he said.
“Cambodia does not lack many workers now, but I think we will lack skilled labour when we integrate in ASEAN in 2015,” he added.