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During the first quarter of 2013, China’s State Council launched ‘Five New Measures’ to further tighten regulation of the residential property market.
Momentum in Hong Kong’s office sales market continued to weaken over the past month, after the introduction of a Double Stamp Duty in late February.
For new-to-China brands in particular, their fl agship stores in Hong Kong are designed to build brand recognition among mainland shoppersand trial new lines.
Over 2011, the Mainland government introduced a number of buying restrictions to help curb the rise in home prices. In Beijing, non-local buyers were required to present evidence of social security and income tax payments covering a minimum of five continuous years since February.
The current incarnation of Guangzhou’s retail market started in the early 90s, with the development of several state-owned department stores.
Volumes start to drop in Hong Kong, as cooling measures and a rise in interest rates dampens demand.
Beijing recorded a 7.7% year-on-year Gross Domestic Product (GDP) growth in 2012.
The last quarter of 2011 was a turning point for the Hong Kong property market as rents and prices either slowed or went into decline. A poor macro-economic environment, tight credit and low affordability alongside policy risk, conspired to dampen sentiment.
Despite a slight improvement in sentiment in Q1 2012 as the eurozone debt crisis appears to have eased for now, real estate investments in South East Asia (Malaysia, Singapore and Thailand) fell about 46% quarter-on-quarter (q-o-q) in Q1 as investors remained cautious of global economic uncertainties and rising business costs.
The hotel sector delivered the greatest total return of all commercial assets for 2011, according to the latest IPD Commercial Property Index. The sector showed a total return of 17.8% for the year.