ASIA-PACIFIC RESIDENTIAL REVIEW

Transcription

1 rsidntial RESEARCH ASIA-PACIFIC RESIDENTIAL REVIEW SPECIAL ANALYSIS: Transport infrastructur AND rsidntial HOTSPOTS Jun 2014 Rgional Rsidntial markt snapshot Infrastructur in Asia Pacific infrastructur projcts Rsidntial hotspots

2 ky findings Knight Frank taks a look at infrastructur across th Asia-Pacific rgion, focusing on transport corridors and urban mass transit systms and thir impact on rsidntial markts Transport infrastructur and rsidntial hotspots Th positiv impact of transport corridors and urban mass transit systms on hous prics Nw mtro lins in Singapor, Bangkok, Tir 1 citis in China and India; and th high-spd link btwn Guangzhou and Hong Kong ar som of th projcts highlightd; along with rsidntial aras w xpct to bnfit th most (s pags 6-11) In our rgional rsidntial snapshot; th Chins housing markt starts to turn, Thailand rmains rsilint, alaysia ss nw cooling masurs and Australia continus to s strong pric prformanc (s pag 3) 8 of th 11 mainstram rsidntial markts in Asia- Pacific saw hous prics incras in 2014, as rportd in Knight Frank s Global Hous Pric Indx NICHOLAS HOLT Asia Pacific Had of Rsarch As th modrn day city continus to xpand... a mor complx ntwork of urban transport infrastructur continus to influnc populations and housing markts. Housing markts hav historically mrgd around transport infrastructur: whthr dwllings bordring ky roads; towns that hav grown up nxt to rivr crossings; or citis that hav dvlopd around sa ports. As th modrn day city continus to xpand, both outwards and upwards, sprading byond traditional boundaris and crating nw skylins of dnsly populatd towrs a mor complx ntwork of urban transport infrastructur continus to influnc populations and housing markts. Commutrs travlling daily in thir millions, fright dlivris, businss supply chains, tourists and visitors in thir thousands, all rly on transport systms to mov thm fficintly around a city. And th continud growth of citis, fulld by urbanisation, has incrasd th prssur on public authoritis to nsur transport infrastructur is abl to cop with swlling numbrs whil kping a city intrnationally comptitiv. Ths challngs ar spcially acut in crtain parts of mrging Asia, whr citis ar growing at such a rapid pac, that a historic lack of planning and invstmnt has mant that infrastructur dvlopmnt is playing catch up somtims from quit far bhind. In our comprhnsiv analysis of rsidntial markts around th world, w s th impact of nw transport corridors and changs in urban mass transit systms on aras and hous prics. Whil nw transport infrastructur dos not hav a univrsally positiv impact on rsidntial pricing (indd thr ar som ngativ xtrnalitis associatd with infrastructur such as nois), w commonly witnss outprformanc and nw rsidntial hotspots mrg, as accss improvs and travl tims around th city ar rducd. In this dition of th Asia-Pacific Rsidntial Rviw, following a snapshot of som of th ky nws in rsidntial markts across th rgion (s pag 3), w focus on this topic of urban transport infrastructur. A brif rgional ovrviw is covrd bfor our rsarch tams around th rgion draw attntion to a numbr of infrastructur projcts that w fl will mak a diffrnc to localisd rsidntial markts in ky Asia-Pacific citis. W highlight th typ of infrastructur projct, th dvlopmnt timlin, and th aras w bliv will b impactd potntial or actual hotspots. Thr is undoubtdly potntial for outprformanc for thos who follow infrastructur dvlopmnts ahad of th markt. Changs in infrastructur nw transport corridors and mtro systms can stimulat and opn up parts of a city, attract invstmnt, xtra dmand for housing and bring a nw nrgy to aras. FiGur 1 Global hous pric indx % 15% 10% 5% 0% -5% *China Taiwan Australia Nw Zaland Indonsia alaysia *Basd on Bijing and Shanghai **Data from 2013 Sourc: Knight Frank Rsarch Annual % chang Quartr % chang **India Hong Kong South Kora Singapor Japan 2

3 ASIA PACIFIC RESIDENTIAL REVIEW RESIDENTIAL Rsarch Rgional snapshot In Australia, rsidntial markts across th stat s capitals continud to prform wll, with th dcision by th Rsrv Bank of Australia (RBA) to lav th cash rat unchangd at 2.5% likly to kp pric growth in positiv trritory. Th govrnmnt manwhil has ordrd a rviw of th rgulations surrounding forign buyrs into th Australian markt, with concrns surrounding th significant amount of Asian buyrs activ in th nw build sctor. As at 2014, prics across th ight stat capitals incrasd on avrag by 10.9% yar-on-yar. Cambodia saw its ral stat markt start to rach a widr audinc with th launch of a numbr of rsidntial projcts ovrsas. Th nascnt condominium markt has attractd intrst from Chins, Japans and Singaporan invstors who ar attractd to th frhold titl and th significant potntial for capital growth. Aftr a continud ris ovr th past fw yars, hous prics in China hav startd to turn in a numbr of citis. Dvloprs who ar undr prssur to shift invntoris, hav bn incrasingly turning to promotions such as zro down paymnt, most notably in scond and third Tir Chins citis. Som local authoritis hav takn stps to as thir curbs on hom purchass in ordr to boost dmand. Th Hong Kong housing markt continud to s prics supprssd by th various cooling masurs. Th rcnt govrnmnt proposal for a minor rlaxation on Doubl Stamp Duty is xpctd to boost buyr sntimnt and transaction volums in th coming months. Th impact on prics howvr is xpctd to b limitd as long as th othr proprty cooling policis rmain in plac. Th mainstram markt saw prics dclin by 0.4% in India xprincd a wav of optimism on th back of Narndra odi-ld National Dmocratic Allianc (NDA) winning th national lction. Evn prior to th lction, xpctations of a rgim chang saw Knight Frank s Sntimnt Indx improv, with stakholdrs incrasingly positiv about th outlook for th rsidntial markt ovr th coming quartrs. In 2013, hous prics incrasd nationally by 3.4%. Th political backdrop is also impacting sntimnt in Indonsia, with th upcoming lctions bringing about a wait-and-s nvironmnt to th housing markt. Th Jakarta condominium markt, which has sn som of th highst pric riss across th rgion ovr th last two yars, saw its growth slow in Th rcnt incras in consumption tax (from 5% to 8%) in Japan is still bing digstd by th markt. Dvloprs, who ar alrady facing rising costs, du to highr labour costs and th dprciating yn will s th cost of inputs now incras furthr, potntially rducing th amount of privat housing starts. Purchasrs manwhil, will pay th nw highr rat on th valu of th building (thy do not pay consumption tax on th apportiond land valu). Similarly in alaysia, th markt is also starting to anticipat th introduction of a Goods and Srvics Tax (GST) for th first tim in Although GST will not b applicabl on dirct rsidntial proprty purchass, it will incras input costs for dvloprs. Th markt is thrfor xpctd to s som cost push inflation in anwhil, th incras of Ral Capital Gains Tax (RPGT) for both domstic and forign buyrs (up to 30% if disposd of within a yar) and tightr lnding conditions has contributd to a fairly subdud housing markt prformanc. Nw Zaland saw its bull markt continu, as nationwid hous prics incrasd by 9.2% yar-on-yar as at Th major citis of Auckland and Christchurch continu to lad th surg in prics, as thy hav don sinc Th Total-Dbt-Srvicing-Ratio (TDSR) of 60%, introducd in Jun 2013 in Singapor continus to impact th markt. High-nd condominiums and apartmnts saw th biggst pric falls, with Knight Frank s Prim Global Citis Indx rcording a 13% drop ovr In Thailand, th political uncrtainty ovr th past six months has not, as yt, had a significant ngativ impact on prics of cntrally locatd Bangkok condominiums. Although pric growth has bn mor subdud, prim condominiums in Bangkok still saw a 2% incras in prics in 2014, with dmand rmaining robust. A numbr of intrnational dvlopr launchs hav, howvr, bn put on hold until th domstic political situation stabiliss. FiGur 2 Global hous pric indx ( 2007 = 100) Q2 08 Q Q2 09 Q Q2 10 Q Q2 11 Q Q2 12 Q Q2 13 Q Hong Kong China* Taiwan India alaysia Indonsia Australia Nw Zaland Singapor South Kora Japan *Basd on Bijing & Shanghai Sourc: Knight Frank Rsarch 3

4 Spcial Analysis Th lvl of infrastructur in a markt is a usful indicator as to th lvl of dvlopmnt whil also a guid to th potntial for catch-up. A mor localisd analysis can also point us to whr som of th bst rsidntial invstmnt opportunitis li. Urban mass-transit systms hav a mor obvious impact on a mor local, rsidntial lvl. FiGur 3 Global comptitivnss indx Infrastructur: Hong Kong SAR Singapor Japan Kora, Rp. Taiwan Australia Nw Zaland alaysia Thailand Sourc: World Economic Forum, Knight Frank Rsarch China Indonsia Vitnam Scor India Cambodia Road and rail ntworks, tlcommunications, dams, bridgs and powr plants ar all critical for th fficint functioning of an conomy. A lack of infrastructur can sriously hold back a country or city s dvlopmnt, knocking prcntag points off potntial growth rats. Invstmnt into infrastructur, whthr in mrging, dvloping or advancd conomis is ssntial to maintain or vn nhanc growth trajctoris. Hong Kong lads th way rgionally and globally Looking broadly at infrastructur dvlopmnt on a national lvl, th Asia- Pacific rgion shows significant divrsity. According to th Global Comptitivnss Indx, calculatd by th World Economic Forum, Asia has thr of th top 10 countris worldwid rankd in trms of infrastructur Hong Kong taking first plac, Singapor scond and Japan ninth plac (s fig. 3). Hong Kong s fficint and comprhnsiv local and rgional transport systms, world lading tlcommunications and connctivity, and advancd sa and air cargo systms rmain th ky rasons for Hong Kong s placing at th top of th indx. China an incrasingly important playr in dvloping Asia China, dspit its rlativly low position on th Global Comptitivnss Indx, is th largst spndr on infrastructur projcts in th world, having funnlld a hug amount of capital into th sctor ovr rcnt yars. Th country is also a ky xportr of capital, incrasingly involvd in ovrsas infrastructur projct financing around th rgion; from th Kunming-Singapor railway lin, to projcts across dvloping Asia. This is not only bing drivn by a dsir to invst its accumulatd capital ovrsas, but also to boost its gopolitical influnc in th rgion. Th proposd USD 50 billion Asian Infrastructur Invstmnt Bank (AIIB), which is xpctd to rival th Asia Dvlopmnt Bank (ADB) and is largly backd by th Chins govrnmnt, is anothr sign of China s incrasingly rgional rol in physical infrastructur dvlopmnt. Th AIIB, ADB along with othr sourcs of financ (non-bank) will b important in dvloping Asian markts such as India, Indonsia, Cambodia, Vitnam and yanmar ovr th coming yars. Ths sourcs of capital will aim to fill th gap in infrastructur financing and boost invstmnt into a sctor which has historically had difficultis attracting potntial participants, du to timframs, political risk, cost ovrruns and illiquidity. Trains, plans and automobils Rturning to th subjct of transport infrastructur and its impact on rsidntial markts, w must distinguish btwn diffrnt lvls of infrastructur; national, intra-rgional, and local. Whil airports, national rail ntworks and intrstat highways ar all indispnsabl lmnts of transport infrastructur, urban mass transit systms, within a city s boundaris, hav a mor obvious impact on a local, rsidntial lvl. Indd, nw or improvd urban transport ntworks can opn up an ara of a city and b a catalyst for urban rnwal. Ths factors, along with rducd travl tims for commutrs and businsss can 4

5 ASIA PACIFIC RESIDENTIAL REVIEW RESIDENTIAL Rsarch FiGur 4 tro systms* in ky Asia-Pacific citis Opning yar of th first mtro systm in parnthss Jakarta (2018) umbai (2014) Bangalor (2011) Kuala Lumpur (1996) Bangkok (1999) Taipi (1996) Singapor (1987) Dlhi (2002) Hong Kong (1979) Guangzhou (1997) Tokyo (1927) Soul (1974) Bijing (1969) Shanghai (1995) Sourc: Knight Frank Rsarch, local transport authoritis, public sourcs all hav a positiv impact on rsidntial aras. Urban transport infrastructur mtro systms ,000 With this in mind, if w tak our analysis down to th city lvl, and look at on of th most important and common forms of urban public transportation mtro systms, w can s a significant amount Futur km (by 2020) Existing km *Th Intrnational Association of Public Transport (L Union Intrnational ds Transports Publics, or UITP) dfins mtro systms as urban passngr transport systms, opratd on thir own right of way and sgrgatd from gnral road and pdstrian traffic. FiGur 5 Kilomtrs of mtro systm Pr million of population of divrsity. Across ky citis in Asia, thr ar not only significant xisting lvls of mtro lin, but a hug amount of nw lins piplind ovr th nxt fiv yars. Indd, narly 70% of additional mtro lins ar ithr undr-construction or plannd for compltion btwn now and 2020 (s figur 4). Whil mtro systms hav a high capital cost, tak many yars to plan and build, thy hav provd to b on of th most fficint ways of transporting popl throughout a city. Of th citis analysd, Tir 1 Chins citis hav th most significant amount of nw lin plannd ovr th coming yars; whil lswhr umbai has just opnd its first mtro lin, and Jakarta is schduld to opn its first mtro lin in Tokyo, th first mtro systm in th rgion (opnd in 1927), togthr with Soul, form two of th most dvlopd mtro systms in th rgion. On a kilomtr pr million of population basis (a crud but intrsting masurmnt s fig. 5), w can s that Soul tops th rgional rankings with 40km of mtro lin providd to vry million rsidnts, followd by Tokyo and Singapor with 36km and 33km rspctivly. Whil th population dnsity of ach city will vary somwhat, it shows rlativ urban mtro dnsitis in ths citis and is prhaps a good indicator of th potntial for catch-up ovr th coming yars. Housing and infrastructur Why is all of this important? Wll, firstly it shows th room for growth in dvloping Asia whr w xpct th most xtnsiv infrastructur dvlopmnt to occur ovr th coming yars. And scondly, as infrastructur changs, volvs and is cratd, it will opn up aras and crat opportunitis. any studis hav shown th positiv impact on prics for houss within proximity to nw public transportation, most notably mtro systms, tram, suburban railway and bus stations. W now tak a look at som of ths opportunitis in mor dtail. Soul Tokyo Singapor Hong Kong Guangzhou Shanghai Bijing Taipi Dlhi Kuala Lumpur Bangkok Bangalor umbai Jakarta Km of mtro systm/million population Soul tops th rgional rankings with 40km of mtro lin providd to vry million rsidnts... Sourc: Knight Frank Rsarch, local transport authoritis, public sourcs 5

6 HOTSPOTS Our rsarch tams across th rgion hav idntifid ongoing and futur infrastructur projcts in thir rspctiv markts, highlighting potntial rsidntial hotspots. AUSTRALIA Sydny Th rcntly compltd xtnsion to Sydny s light rail ntwork has addd nin nw stops btwn Lilyfild and Dulwich Hill; conncting train and bus routs in th Innr Wst as an altrnat passag to th Sydny CBD. In th thr months lading to th maidn journy in arch 2014, apartmnt prics in th suburbs of Lichhardt, Habrfild, Summr Hill and Dulwich Hill avragd capital growth of 3.6%, trnding abov th 2.3% xprincd across Sydny. ichll Cisilski, Rsidntial Rsarch, Australia Innr Wst Light Rail Extnsion Railways ain roads Light rail xtnsion Habrfild A22 Summr Hill Summr Hill Habrfild Dulwich Hill Lichhardt Ptrsham A22 Lilyfild Station Stanmor A34 CBD Annandal N A34 Dulwich Hill Dulwich Hill A km Dulwich Hill Station CABODIA Phnom Pnh Sinc th Chroy Changvar Scond Bridg commncd construction in 2011, w hav sn a flurry of activity in Chroy Changvar Commun, with rsidntial dvloprs agr to tak advantag of th improvd accssibility to an ara that occupis prim rivr frontag locatd a mr 2.5 km from th Cntral Businss District. With th bridg du for compltion in 2014, markt prics in this location ar xpctd to rcord halthy incrass ovr th mdium to long trm, furthr supportd by th widning of National Road 6A and th bautification of th rivr front. Ross Whbl, Country anagr, Cambodia Chroy Changvar Scond Bridg Khan Tuol Kouk PHNO PENH ain Roads Scondary Roads Chroy Chongvar Scond Bridg Likly hotspots Cambodia Railway Khan Prampir akkakra Khan Doun Pnh Khan Chamkar on National Highway 6A Chroy Chongvar Commun 0.5 km 6

7 ASIA PACIFIC RESIDENTIAL REVIEW RESIDENTIAL Rsarch tro Lin 7 G. CHINA Bijing Nw subway lin Railways ain roads Subway S51 Tiananmn Tiananmn Squar Squar G nd Ring Road 8 4 2nd Ring Road 4 Lin 7, with a total lngth of 23.7 km and 21 stops, is xpctd to b compltd by th nd of Th ara around Wufang Bridg and Huagong Bridg along 5th Ring Road should bcom a hotspot. Ths two bridgs ar around 1km from Jiaohuachang Station, at th nd of Lin 7. S51 G102 Hous prics in this ara ar currntly in th rang of RB 23,000-30,000 pr sq m. Whn Lin 7 is launchd, transportation in this ara will b improvd dramatically, which is xpctd to driv up th hous prics by ovr 20%. 14 Wufang Bridg Wufang Bridg 10 5th Ring Road Huagong BridgHuagong Bridg David Ji, Had of Rsarch & Consultancy, Gratr China 5th Ring Road S50 S50 S50 S50 tro Lin 21 G. CHINA Guangzhou G4 G1501 ain Roads Scondary Roads G1501 Nw rout Hotspot G15 S41 G4 G15 S41 S267 S2 S21 S81 S15 Tianh S267 S81 Tianh G321 S15 Guangzhou Scinc City Guangzhou Scinc City S21 S303 G321 Haizu S43 G4 S303 S82 S15 S2 G4 Haizu S39 S82 S43 S15 S39 S111 Schduld for compltion in 2016/17, tro Lin 21 is likly to bnfit Guangzhou Scinc City, which is on of th major nw aras of th city. Th ara has bn comprhnsivly plannd by th govrnmnt and will bnfit from a varity of nw transport infrastructur projcts currntly undr construction. According to plans, thr ar two mtro lins including Lin 21 and phas two of Lin 6 which will run through th ara. Th currnt hous prics in th ara stand at approximatly RB 15,000-20,000 pr sq m, much lowr than that of th astrn part of Tianh District, providing significant potntial for outprformanc. S111 Ocan Ruan, Rsarch & Valuation gr., Guangzhou 4 km S105 4 km S105 tro Lin 17 G. CHINA Shanghai Nw mtro lin 17 ain Roads Scondary Roads Emrging hotspot S224 S224 G1501 G1501 S125 S125 Qingpu Xujingzhn Qingpu Zhaoxiangzhn G50 Zhaoxiangzhn G50 2 km Shanghai tro Lin 17 (also known as th Qingpu Lin) is a mtro lin that is plannd to b compltd Hongqiao Intrnational in 2017/2018. Th lin starts at Hongqiao Railway Airport Station in inhang District, running to Orintal Land in Qingpu District. Th nw lin will b 35.2 km in lngth Longbai and consists of 13 stations. Th lin will intrchang Rsidntial with lins 2Longbai and 10. Xujingzhn District Hongqiao Intrnational Airport Rsidntial Districttim from Qingpu to downtown Th commuting Shanghai will b shortnd significantly, thrfor proving a boost to th ara, whr rsidntial markts ar xpctd to outprform. Rgina Yang, Had of Rsarch & Consultancy, Shanghai 2 km 7

8 Downtown Kowloon in Hong Kong lungchopan, Shuttrstock G. CHINA Hong Kong Th 26-km Guangzhou-Shnzhn-Hong Kong Exprss Rail Link is xpctd to opn in 2017, running from th trminus in Wst Kowloon to Shnzhn. Travlling tims will b rducd to 14 minuts btwn Hong Kong and Futian (Shnzhn), to 23 minuts btwn Hong Kong and Shnzhn North and 48 minuts btwn Hong Kong and Guangzhou South. This is xpctd to bnfit Hong Kong s rsidntial sctor, particularly luxury rsidntial projcts nar Kowloon Station and Austin Station, by bringing in potntial buyrs dirctly from th ainland of China. David Ji, Had of Rsarch & Consultancy, Gratr China Guangzhou-Shnzhn-Hong Kong Exprss Rail Link 3 5 Kowloon Station Subways ain roads Futur Exprss Rail Link Austin Station 1 Lantau Island Futian Station Wst Kowloon Trminus Hong Kong Island 7 4 km INDIA Bngaluru Bngaluru witnssd th launch of th scond tro rail strtch in arch Th 9.9 km lin of track conncts th city s north-wstrn suburbs in Pnya to Sampig Road in th wst. Th announcmnt of th nw lin has alrady ld to an apprciation in rsidntial proprty prics in locations lik allshwaram and Rajajinagar. or nw rsidntial projcts ar xpctd to com up along th strtch at comptitiv prics, addd to scop for rdvlopmnt of oldr proprtis, particularly in th industrial aras of Pnya. Considrabl intrst from hom buyrs is xpctd in ths aras, owing to improvd connctivity. Sangta Sharma Dutta, Lad Rsarch Consultant, Bngaluru Namma tro Grn Lin - Rach 3 & 3A 0.5 km Pnya Pnya 0.5 km Yshwantpur Yshwantpur Nandini Layout Nandini Layout Jalhalli Jalhalli YESGWANTHPUR JUNCTION RAILWAY YESGWANTHPUR JUNCTION RAILWAY ahalakshmipuram athikr ahalakshmipuram Rajajinagar Gayatrinagar Rajajinagar Gayatrinagar Basavshwara Nagar Basavshwara Nagar allswaram Railway athikr allshwaram Sampig Road allshwaram allswaram Railway Sampig Road Railways ain roads tro 8

9 ASIA PACIFIC RESIDENTIAL REVIEW RESIDENTIAL Rsarch umbai tro alad Vrsova DN Nagar Andhri 8 JB Nagar arol Sakinaka UBAI Railways ain roads tro Ghatkopr INDIA umbai Th umbai tro projct is arguably th only ffctiv mass rapid transport systm that is concivd to connct th havily populatd cntral and wstrn zons of umbai. Rcntly opnd, th 11.4 km first phas of Vrsova Andhri Ghatkopar mtro lin is xpctd to gratly nhanc th rsidntial appal of locations along this rout providing grat potntial for pric outprformanc. Aras such as Ghatkopar, Sakinaka and Vrsova ar xpctd to s th most apprciation as thir accss to offic hubs in th Andhri alad blt ar nhancd to a grat xtnt now th mtro has bcom oprational. Yashwin Bangra, Lad Consultant, umbai 3 Chhatrapati Shivaji Trminus formrly Victoria Trminus in cntral umbai, India Jo Ravi, Shuttrstock Dlhi tro Phas III & IV Bawana Bahadurgarh 10 Narla ukundpur 57 ain roads Ghaziabad INDIA NCR Dlhi tro s Phas III & IV will giv a fr rin to th potntial of th distant aras of NCR spcially in th North and Wst. Phas III, slatd to b compltd by 2016, will bring down th travl tim btwn svral intrchang stations. Phas IV, on th othr hand, will connct and unbridl th dvlopmnt potntial of th priphral aras. Najafgarh 8 AH 1 Nw Dlhi 2 AH 2 Noida In particular, locations lik Bahadurgarh, Narla and Bawana ar sn as th futur hotspots for ral stat dvlopmnt. A lot of traction is xpctd in ths aras in th coming yars, lading to rsidntial pric apprciation. 5 km Gurgaon Gratr Noida Ankita Sood, Consultant, National Capital Rgion 9

10 INDONESIA Jakarta Phas on of th ass Rapid Transit (RT) lin will strtch along th Sudirman to Lbak Bulus ara. Whil to th north of th lin, th Sudirman and Thamrin aras (considrd as prim CBD) hav sn land apprciat by 30% - 40% sinc last yar; th Lbak Bulus ara is anticipatd to bcom a nw mrging hotspot on account of RT lin connctivity. This will attract invstors to dvlop mixd-us proprty, and purchasrs looking to bnfit from rducd travl tim. For ths rasons, land prics ar xpctd to outprform by mor than 20% until th officially announcd compltion of th RT lin in Hasan Pamudji, Associat Dirctor, Indonsia RT Jakarta Pondok ArnPondok Railways ain Roads Scondary Roads RT Lin Phas 1 Emrging hotspot Kbon Jruk Kbon Jruk Kbayoran LamaKbayoran Lbak Bulus Lbak Bulus CBD Goldn Triangl CBD Goldn Triangl Jatingara Jatingara ampang Prapatan ampang Pancoran Prapatan Pancoran JAKARTA JAKARTA atraman atraman Kramat Jati Kramat Jati! "#$!%&'(!)*+,(!-'(!./(01&'1!234,534!! Pulo Gadung Pulo Gadung! Elvatd Highway, Ampang Kuala Lumpur JPL Dsigns, Shuttrstock ALAYSIA Kuala Lumpur Expctd to complt in 2016, th Light Rail Transit (LRT) xtnsions of th Ampang and Klana Jaya lins ar xpctd to rduc travl tims for districts srvd by stations along ths lins significantly. W xpct rsidntial projcts nar th ky stations along th two LRT lins to prform wll, including Subang Jaya-USJ, Putra Hights, Klana Jaya, Glnmari, Kinrara and Puchong. Puchong-Kinrara, Bukit Jalil and Subang-Sunway ar th thr ky hotspots w ar highlighting for potntial outprformanc. Judy Ong, Excutiv Dirctor, alaysia LRT xtnsion - Ampang Lin & Klana Jaya Lin Klana Jaya Klana Jaya Glnmari Glnmari Subang Jaya Subang Jaya Putra Hights Putra Hights Puchong Puchong Kinrara Kinrara KUALA LUPUR KUALA LUPUR Klana Jaya Lin Extnsion Ampang Lin Extnsion Existing LRT ain Roads Scondary Roads 10

11 ASIA PACIFIC RESIDENTIAL REVIEW RESIDENTIAL Rsarch City skylin along Bukit Timah Exprssway, Singapor JPL Dsigns, Shuttrstock Downtown Lin Phas 2 and 3 SINGAPORE Singapor Stags 2 and 3 of th Downtown RT Lin (DTL), st for compltion in 2016 and 2017 rspctivly hav alrady ld to valu nhancmnts of privat non-landd rsidntial dvlopmnts around futur stations. Prics of dvlopmnts situatd within 500m of th futur Hillviw, Bauty World and King Albrt Park stations along Uppr Bukit Timah Road (District 21) and Rochor station (District 7) hav sn prics surpass th 20.5% avrag incras in th Outsid Cntral Rgion (OCR) nonlandd privat rsidntial pric indx, sinc th announcmnt of alignmnt plans for DTL Phas 2. rs sw rs Pa King King Albrt ParkAlbrt Park ya Pa ya Lb ar Lb ar Exp Hillviw Hillviw Bauty Bauty World World ay sw ay Hougang Hougang Exp ad Ro ad ah Ro im ah it T im uk it T rb uk p rb Up p Up Ang o Kio Ang o Kio Bdok Bdok BukitBukit Timah Timah Rochor Rochor Ay rr Ay aja Orchard Orchard he rr xp he r s xp sw ay r s East Bugis Bugis aja ay ssw sway Expr s Coast oast Expr C East sw ay CBDCBD SINGAPORE SINGAPORE Nw RT Lin Existing RT Exprssways ain roads Taling Chan Taling Chan o rc d Un Phasi Charon Phasi Charon n: io ct ru st RT n n sio n Li n t Ex on rc d Un Ban Chang Lo Ban Chang Lo RT n: io ct ru t ns n io ns t Ex Pom Prap Sattru Phai Pom Prap Sattru Phai CBD CBD THAILAND Bangkok BT S: uc an n d str on rc Pla d nnd R T: P RT: ink Pink Lin Lin nn Th Bang Su Hub, to th north of th city, is st to bcom a larg trminal whr many mass transit lins will intrsct. Th station, which is currntly srvd by th RT Blu Lin, is plannd Lat Phrao Lat Phrao Chan Kasm Chan Kasm to b joind by th RT Dark Blu Lin in 2016 (north south lin); also by Stat Railway of Thailand Pla nn Pla d nn Khlong KumKum(SRT) Dark Rd Lin in 2017 (towards Rangsit); RT: d Khlong Yll RT: ow Yll Lin ow Lin and an xtnsion of th Airport Rail Link by HuaiHuai Khwang Khwang Bang Kapi Du to ths infrastructur dvlopmnts, w ar Bang Kapi Plann dan n Pl RTd : Or Hua ak witnssing th rdvlopmnt of th surrounding an g RT: OrLin Hua ak ang Lin aras with a significant uptick in intrst from Existing ARL Existing ARL Khlong Tan Nua dvloprs. Th ara is st to bcom a rsidntial Khlong Tan Nua Ex hotspot in th coming yars. ist Ex ing is n: S Lin t Rd Rd Lin Ligh t SRT: RT: Ligh S d Un d Bang SuSu Bang Li Un Wong Sawang Wong Sawang rc on str uc tio Exprssway/Tollway Existing lins RT Extnsion lin (undr construction) RT Extnsion lin (plannd) SRT Extnsion lin SRT Extnsion lin (undr construction) BTS Extnsion lin (plannd) Pla Pl tio n Rangsit Rangsit Undr Undr Const Coruc nsttion ruc:tion R:TR ExtTns Extion nslin ion Lin RT Da rk :S R RT dl Da in rk Pl an R Ex n dl t d ns in BT i o S: nl Ex in t ns ion Lin Bang Su Transport Hub Alic Tan, Rsarch Dirctor, Singapor BTtin S gb TS Suan Luang Suan Luang 2 km Risin Sarikaputra, Rsarch Dirctor, Thailand 2 km 11

12 APRIl 2014 Knight Frank s inaugural Prim Asia Dvlopmnt Land Indx drivs th pric of prim rsidntial (apartmnt or condominium) and commrcial (offic) dvlopmnt land in 13 major citis across Asia. It is th first indx of its kind to track dvlopmnt land prics across th rgion. Th rsults show that in th two yars from Dcmbr 2011, 24 of th 26 Asian markts (13 rsidntial and 13 offic) saw an incras in thir indics, rflcting incrasing prim land prics amid tight supply and strong dmand. Emrging Southast Asian markts dominat th top of th rankings, with Jakarta and Bangkok both sing significant pric incrass. Th matur markts of Hong Kong, Singapor and Tokyo saw th lowst pric growth. With comptition for prim dvlopmnt sits rmaining as strong as vr, incrasing numbrs of dvloprs and invstors ar looking ovrsas for opportunitis. AINSTREA ARKETS: OVER OR UNDERVALUED? PRIE SECOND HOES: IDENTIFYING BUYING OPPORTUNITIES ASSESSING RISK: TO BUY OR NOT TO BUY? RESIDENTIAL RESEARCH Prim rsidntial prics ros by 0.8% in th first quartr of 2014 Th indx ros by 6.1% ovr a 12-month priod, up from 4.8% a yar arlir Dublin rcordd th scond highst rat of quartrly growth, up by 5.6% in th first quartr Luxury pric falls in Hong Kong and Singapor rflct th continuing impact of cooling masurs Th wakr Rand is attracting forign purchasrs to Cap Town KATE EVERETT-ALLEN Intrnational Rsidntial Rsarch Dspit th slowr rat of growth in th first quartr, th Prim Global Citis Indx ros by 6.1% on an annual basis, up from 4.8% a yar ago. Follow Kat For th latst nws, viws and analysis on th world of prim proprty, visit Global Brifing Prim rsidntial prics in ky citis worldwid ros by 0.8% on avrag in th first quartr of 2014; th Prim Global Citis Indx s slowst rat of growth sinc Q Kat Evrtt-Alln xamins th latst figurs. Th Prim Global Citis Indx tracks th pric Th indx is 33.8% highr than its postprformanc of 32 luxury rsidntial markts, Lhman low in Q2 2009, and it is 24.9% which includs th addition this quartr of highr than its pr-crisis pak in Q two nw citis Dlhi and Bngaluru. Jakarta tops th rankings but Dublin Closr analysis shows th first quartr of saw th scond highst rat of quartrly th yar has bn th indx s wakst growth, with prim prics nding th first prforming quartr in th last two yars. quartr 5.6% highr. Last yar markd Th first quartr, for many Europan and a turning point for Dublin s upmarkt US citis, corrsponds to th wintr months rsidntial aras such as Dalky and Ballsbridg. Sinc thn luxury prics whr sals activity is sluggish and pric hav risn around 24% but prics rmain movmnts slowr. In much of Asia it also 35-45% blow thir pr-crisis pak. marks a traditional low sason as Chins Nw Yar ss sals activity dclin. Sals volums dippd in ainland China in th first quartr, partly du to th traditional In addition, tax changs (CGT, VAT tc) low sason but also du to tightr crdit oftn tak ffct at th nd of Dcmbr conditions. Luxury buyrs in Singapor lading to a spik in sals in th fourth ar adopting a wait-and-s approach, quartr as buyrs and vndors look to tak allowing cooling masurs to tak ffct advantag of lowr rats.g. fiscal cliff in and prics to corrct bfor purchasing. Nw York in Cap Town is on markt to watch in Dspit th slowr quartrly rat of growth, Th wakr Rand is attracting buyrs from th Prim Global Citis Indx ros by Europ and lswhr in Africa, including 6.1% on an annual basis, up from 4.8% walthy Nigrians. Activity is strong on th a yar ago suggsting th ovrall trnd Atlantic Saboard and limitd stock blow for luxury prics continus to follow an ZAR 5m is xpctd to lad to strongr upward trajctory. pric growth. FIGURE 1 Prim pric prformanc by city Annual pric chang to 2014 Jakarta* Dublin iami Tokyo Bijing Los Angls* San Francisco* Dubai 300 Tl Aviv* Nw York* Bangkok London Sydny Vancouvr 250 Vinna Shanghai adrid Nairobi Kuala Lumpur onaco 200 umbai Cap Town Dlhi Bngaluru St Ptrsburg Rom 0% 150 Paris 0% oscow Zurich Hong Kong Gnva *Data to 2013 Singapor % 0% 10% 20% 30% 40% Sourc: S main tabl on pag 2 * data to 2013 FIGURE 2 Divrging rgions: Europ v Asia Pacific Indxd, 100 = GLOBAL EUROPE ASIA PACIFIC Sourc: S main tabl on pag 2 * data to 2013 GLOBAL BRIEFING For th latst nws, viws and analysis on th world of prim proprty, visit KnightFrankblog.com/global-brifing Knight Frank Rsidntial Rsarch provids stratgic advic, consultancy srvics and forcasting to a wid rang of clints worldwid including dvloprs, invstors, funding organisations, corporat institutions and th public sctor. All our clints rcognis th nd for xprt indpndnt advic customisd to thir spcific nds. Rcnt markt-lading rsarch publications Th Walth Rport 2014 RESEARCH Prim Asia Dvlopmnt Land Indx Prim Asia Dvlopmnt Land Indx RESIDENTIAL RESEARCH GLOBAL OPPORTUNITIES REPORT ASSESSING VALUE IN HOUSING ARKETS WORLDWIDE 2014 Global Opportunitis Rport 2014 PRIE GLOBAL CITIES INDEX Rsults for 2014 LUXURY PRICE GROWTH WEAKENS IN FIRST QUARTER Prim Global Citis Indx 2014 ASIA PACIFIC RESEARCH Nicholas Holt Asia Pacific Had of Rsarch nicholas.holt@asia.knightfrank.com GLOBAL RESIDENTIAL Andrw Hay Global Had of Rsidntial andrw.hay@knightfrank.com ASIA PACIFIC RESIDENTIAL Asia Pacific Intl. Projct arkting Sarah Harding sarah.harding@au.knightfrank.com Australia Erin van Tuil rin.vantuil@au.knightfrank.com Bijing aurn Yo maurn.yo@cn.knightfrank.com Hong Kong Rnu Budhrani rnu-budhrani@hk.knightfrank.com India udassir Zaidi mudassir.zaidi@in.knightfrank.com Indonsia Willson Kalip (100) willson.kalip@id.knightfrank.com alaysia Hrbrt Long hrbrt.long@my.knightfrank.com Shanghai Shrry Wang shrry.wang@cn.knightfrank.com Singapor Tan T Khoon tkhoon.tan@sg.knightfrank.com Thailand Frank Khan frank.khan@th.knightfrank.com Knight Frank Rsarch Rports ar availabl at KnightFrank.com/Rsarch Knight Frank LLP 2014 This rport is publishd for gnral information only and not to b rlid upon in any way. Although high standards hav bn usd in th prparation of th information, analysis, viws and projctions prsntd in this rport, no rsponsibility or liability whatsovr can b accptd by Knight Frank LLP for any loss or damag rsultant from any us of, rlianc on or rfrnc to th contnts of this documnt. 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