Knowledge Center Archives
Financial Markets Weekly Snapshot - Week 24
A review of the past weeks financial and real estate market data for week commencing 11th June.
Cost Of “Made In China”
The share of global manufacturing output from developing countries has risen from 20% in 2000 to over 33% in 2011. China now accounts for a fifth of all global manufacturing.
However, China has witnessed soaring labour costs, taxes and land prices over the past few years, which are pushing companies to question China as a cost efficient location for manufacturing production.
That said, China’s high costs are generally offset by the availability of a reliable supply chain, high-quality infrastructure, sophisticated market and overall ease of business, particularly when compared to the conditions of other Asian markets.
The key for China is to move up the value chain of manufacturing. By doing so China will retain its competitive advantage within the Asian markets as well as sustaining its prominence as Asia’s manufacturing hub.
Sydney CBD Retail
The Australian economy is showing resilience in light of global and regional economic slowdowns. Retail rents in Sydney CBD are amongst the highest in the world. In many ways these super prime and prime locations are more about branding than sales volume. Contrasting the high rental rates in the CBD, there is underlying volatility in Sydney’s retail market. The indicators are clear with falling consumer sentiment and poor retail sales growth. International retailers are coming to Australia in greater numbers and for larger retail tenancies. Shopping centres are dominant in the suburbs with an adverse impact on high street shopping. Online shopping is affecting sales volume of many brick and mortar retailers as consumers can purchase a variety of goods online for cheaper prices
The UK Property Investment Market - May 2012
Average prime yields edged up to 5.78% in April, with retail property most under pressure. Retail warehouses were the main culprit of this last month but over the course of the correction which started a year ago, the yield increase for retail warehouses of 25bp is less than for shops or shopping centres (38bp and 39bp respectively). By contrast, business space sectors have been more stable, with industrial and distribution as well as London offices unchanged and national offices out by 25bp.
Business Briefing: National Housing Market Analysis
The latest housing metrics suggest that the housing market has entered a phase of stabilization and no significant changes to the housing market are anticipated through the remainder of 2012. There is a growing consensus that a positive movement in home pricing, sales activity and new construction will occur in 2013. Even so, a stronger economic recovery with companion job growth and affordability by way of home purchase financing will be necessary precursors to a more robust rebound in housing market conditions.
More Delays On Lease Accounting Changes
The long overdue lease accounting Revised Exposure Draft suffered another setback, with the two
governing bodies favouring alternative methods for the treatment of rent (“lease charge”) going
While it is tentatively accepted that leases will appear on the balance sheet, the mechanism by
which the Right-To-Use (RTU) asset and Obligation-To-Pay (OTP) liability are reduced is in
question. There are three approaches being considered on how to depreciate the asset, all with
contrasting effects to the P&L.
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The UK Property Investment Market - April 2012
Prime yields were broadly stable at an average of 5.76% in March, but secondary yields found themselves under increasing pressure. In fact it is only a lack of transactional evidence which has prevented a marked outward shift thus far. Investor caution has also continued to be reflected in a lengthening timetable for getting deals done and more intense due diligence.
NYC Economic and Office Market Overview and Outlook
The New York City economy continues to outperform the nation as a whole, and the Manhattan office market is the second-tightest in the U.S. This Business Briefing provides an overview on the New York City economy and office market, and an outlook for 2012.
Business Briefings: Thames Valley Office Market Q4 2011
Cost control remained the key priority for occupiers throughout 2011 with take-up for the year as a whole totalling 1.27m sq ft, 11% lower than 2010 and 14% below the 5 year average of 1.48m sq ft.
European Real Estate Lending Survey
For the European lending survey report 2012, 78 leading global real estate finance providers were interviewed to assess the level of appetite for lending and to identify the trends that will shape the European finance market in 2012