Property investors look East for hope amid economic crisis
Monday, 24 November 2008
HONG KONG, Nov 23 (AFP): There could have been no worse time to hold an expo on the Asian property market this year than November.
As the impact of the global financial crisis on the region unravels-in the form a slumping stock market, company bankruptcies, steep falls in flat prices, and job cuts-even the most daring of property investors have taken a step back.
It was against this backdrop that the Asian version of an international real estate summit held annually in Cannes, France, was held last week in Hong Kong.
The number of exhibitors at the MIPIM Asia conference-developers, banks, fund managers, architectural firms, hotel groups and construction companies, mostly from Asia-dropped to 190 from last year's 236, organisers said.
Visitors were also down to 1,700 from more than 2,100 last year.
During the three days, November 19-21, there were times when the number of people manning the exhibition booths outnumbered visitors.
Despite the lukewarm attendance, however, those who did make it to the expo shared the same enthusiasm for answering the question: Is the Asia market the last bastion of hope for property investment?
"More than ever, we do need this kind of event, our trade delegates really need to communicate in this hard moment," Gilles Chaumet, MIPIM Asia director, told newsmen.
As the domestic property markets in the US and Europe are being battered by the credit crunch, many investment groups are starting to preach to their clients about the wisdom of shifting their capital to Asian properties.
As the impact of the global financial crisis on the region unravels-in the form a slumping stock market, company bankruptcies, steep falls in flat prices, and job cuts-even the most daring of property investors have taken a step back.
It was against this backdrop that the Asian version of an international real estate summit held annually in Cannes, France, was held last week in Hong Kong.
The number of exhibitors at the MIPIM Asia conference-developers, banks, fund managers, architectural firms, hotel groups and construction companies, mostly from Asia-dropped to 190 from last year's 236, organisers said.
Visitors were also down to 1,700 from more than 2,100 last year.
During the three days, November 19-21, there were times when the number of people manning the exhibition booths outnumbered visitors.
Despite the lukewarm attendance, however, those who did make it to the expo shared the same enthusiasm for answering the question: Is the Asia market the last bastion of hope for property investment?
"More than ever, we do need this kind of event, our trade delegates really need to communicate in this hard moment," Gilles Chaumet, MIPIM Asia director, told newsmen.
As the domestic property markets in the US and Europe are being battered by the credit crunch, many investment groups are starting to preach to their clients about the wisdom of shifting their capital to Asian properties.