Signs of a measure of calm returned to global stock markets on Friday, ending a tumultuous week.  Asian stocks extended their region-wide rebound Friday, with Hong Kong shares leading the way with a 6.73 per cent jump, ending one of the most volatile weeks in the market’s history.

In Bangkok, the SET index surged 32.32 points up 4.3 per cent, marking the Bangkok bourse’s first substantial rebound since the US announced interest rates cuts to stimulate its economy. Japan‘s Nikkei index soared more than 4 per cent, and the Topix 4.7 per cent. India‘s Sensex and Nifty indices both added on more than 6 per cent.  Stocks on the Singapore Exchange climbed 3.59 per cent. Stocks in Taiwan, rose nearly 3 per cent, fueled by a rally of technology shares and gains on Wall Street for two consecutive days. Philippine share prices rose 2.85 per cent, and Australian stocks charged ahead 5 per cent. What do you think?  Bear market or correction? 

Among the areas that were looked at were the starting of a business, in terms of the number of procedures and days, the cost, and minimum capital requirements.  It is easiest in Singapore, Hong Kong, and Thailand, and hardest in Indonesia and the Philippines.

With regard to dealing with licences, in terms of the number of procedures and days and cost, doing business is easiest in Singapore, Thailand and South Korea, and most difficult in India and China.

The Dutch financial group ING did its own survey on investment behaviour patterns and found that despite a possible downturn in the US economy, investor sentiment across Asia, with the exception of Japan, was positive and the outlook remained so for next three months.

ING reported that respondents in India and China were most optimistic about their countries’ economic outlook, followed by those in Malaysia and the Philippines while investors in Hong Kong and Singapore took a more cautiously optimistic approach.

At the other end of the spectrum, investors in Australia, Japan and New Zealand are less optimistic and investors from countries that have previously experienced an economic downturn, namely Indonesia and Thailand, were more upbeat about the future of their economies.

The “ING Investor Sentiment Tracking Study” was done with the aim to gauge changes in market sentiments, understand current and future intentions in investment behaviours and assess trends in risk absorption.

The markets included Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan and Thailand.  

• Local stock trading was the favourite investment tool in seven out of 13 surveyed countries, namely Japan, Hong Kong, Singapore, Korea, China, Taiwan and Thailand.
• Property investment is the favourite investment tool in Australia, New Zealand, Indonesia and India.
• Cash is the most preferred investment in Malaysia and the Philippines.

The most coveted property markets were China, followed by Australasia and Vietnam.

ING said that most investors in Asia, except for Japan, believes their returns on investment had increased over the last three months. However, looking into the next three months, investors take a more conservative approach and expect a smaller return on investments.

Investors in China, India and the Philippines were the exception, believing that returns on their investments will be just as strong in the next three months.

To read the full reports, go to www.Bangkokpost.com  and www.ing.com

And if you look more widely in the region, the stock markets have been riding high and investors, particularly from mainland China are banking their profits in the asian property markets to secure their gains. 

Clayton points to pre-sale figures achieved in recent projects launched by listed developers such as Supalai, Plus Property (a subsidiary of Sansiri), Noble and Raimon Land, demonstrate, in fact, the property market in Thailand is doing just fine.

Supalai launched its new riverside project, Supalai River Place, in June. The day after its launch, 85% of its 800 units were sold out, with prices in the one- to five-million-baht range.
Condo One launched a series of eight projects in various locations of the inner city. Most of those were sold out a few days after launch, and prices in the few units that remain available have continued to escalate.
Noble successfully sold 500 units at Noble Remix on Sukhumvit 36 within a few weeks, with prices in the three- to five-million-baht range. Noble is confident that successful investors in their Remix project will repeat their experience with the upcoming Noble Solo on Thong Lo.
And there’s more.

TCC CapitaLand, a joint venture between CapitaLand of Singapore and the TCC Land group of Thailand, recently introduced two new high-end projects: Emporio on Sukhumvit 24 and Empire Place in Sathorn.

CDL, after the takeover of the Pornpat Tower (later renamed Exchange Square), and the Millennium Hilton on the riverside (both vacant buildings), has announced a five-billion-baht condominium development on Sukhumvit 18-20, comprising four high-rise towers with a total of 600 units.

CentrePoint successfully launched The Pano on Rama III, in a joint venture with Krungthep Land last December. Most of the units with river views have been sold. Prices have already reached 100,000 baht per square metre for the best units.

HKR, the owner of Sukhothai Residences, also plans to inject several billion baht to develop a 46-storey condominium building at the back of the Sukhothai Hotel. 

SET-listed Raimon Land has successfully completed its Northshore project in Pattaya. The company has almost sold the entire project and more than 20% of the units have already changed hands prior to transfer, with capital appreciation of 20-50%. Northshore units are now reselling at 100,000 to 120,000 baht per sq m, equivalent to the high-end market in Bangkok.

The upcoming launch of Raimon Land’s 3.5-billion-baht Northpoint project in Pattaya has already generated interest from more than 1,200 pre-registered buyers. Most of the demand is from Bangkok residents, both Thai and foreign, and demonstrates the confidence that private individuals and investors have in well located properties in Thailand’s premium areas.

The recent completions and brisk sales of well-located developments in Bangkok and Pattaya is clear evidence that real estate is increasingly seen as a new alternative for local investors seeking an affordable, secure and attractive return on assets.

Whether it is in the mid-range market, with companies such as Supalai, or at the high end, with developers such as Raimon Land, the Thai real estate market steadily outperforms other types of investments.
For more information on Asian property investment, read the full report at : http://www.bangkokpost.com/