SINGAPORE – Investors are optimistic about the property markets of New York, Kuala Lumpur and London, international property investment firm, IP Global, said on Tuesday.
This is in contrast to their outlook for the property markets in China, Dubai and Greece.
According to IP Global’s Property Barometer for the first quarter of this year, prices in the Manhattan property market will continue to rise in 2011.
New York City’s housing market finished 2010 with a 10 per cent increase in prices over the last three months of the year. Even the ‘Dr Dooms’ of finance, Messrs Nouriel Roubini and John Taylor, have recently purchased residential property in New York.
For Malaysia, IP Global cites the encouraging performance of the manufacturing and services sectors and the strong gain in the ringgit as positive indicators.
It expects the Kuala Lumpur property market to remain stable during 2011 and estimates prices to rise by 5 per cent on the back of increasing transaction volumes and an ambitious economic transformation programme.
Meanwhile, investors have cooled towards China’s property market after the central bank raised interest rates twice since October 2010 to prevent the economy from overheating. It has also recently announced property purchase limitations for second and third-tier cities as property prices rose 0.3 per cent during December to end 6.4 per cent higher year-on-year.
IP Global says the restrictions now faced by property investors in China and the likelihood of more curbs during 2011 gives it the view that investment elsewhere, in a less speculative market, will offer investors more security, – Jonathan Peeris