Properties lift Hong Kong stocks to life high

HONG KONG (Reuters) - Hong Kong stocks struck a record high on Monday as property stocks rallied further before a government land auction on Tuesday, while PetroChina Co. Ltd. (0857.HK: Quote, Profile , Research) led a jump in China shares.

"Property and Chinese concept stocks are helping the market big time," said Jackson Wong, investment manager at Tanrich Securities.

PetroChina Co. Ltd. (0857.HK: Quote, Profile , Research), the morning's most active share, rallied a further 4.7 percent to HK$10.64 following its announcement of a landmark oil discovery last week and after shareholders of Berkshire Hathaway Inc. (BRKa.N: Quote, Profile , Research) (BRKb.N: Quote, Profile , Research) defeated a proposal to divest a $3.3 billion stake in the oil producer.

"That's good news: Near-term, it says that no one wants to sell PetroChina," said Wong.

By lunch, the benchmark Hang Seng Index <.HSI> had risen 0.9 percent, or 195.89 points, to 21,036.97. It earlier crossed 21,000 points for the first time to hit a record high 21,070.21 points.

Turnover was heavy at HK$39.9 billion (US$5.1 billion), up from Friday morning's HK$35.0 billion.

Property stocks got a boost ahead of Tuesday's land auction for a west Kowloon site, which has opening bids starting at HK$2.6 billion. By some reports, the site could fetch as much as HK$5 billion.

Among blue-chip developers, Hang Lung Properties (0101.HK: Quote, Profile , Research) was a top gainer, rising 4.2 percent to HK$25, earlier tapping all-time highs. Henderson Land (0012.HK: Quote, Profile , Research) raced up a further 2.4 percent to HK$55.35 in heavy trade after leading the sector in a rally that began on Thursday following a broker upgrade.

The Hang Seng property sub-index <.HSNP> jumped nearly 2 percent.

Other active shares were two stocks widely tipped to enter the Hang Seng index after the results of a quarterly index review set to be announced following Friday's market close.

China Overseas Land and Investment Ltd. (0688.HK: Quote, Profile , Research) surged 7.1 percent to HK$11.14, earlier tapping all-time highs.

Life insurer Ping An Insurance (Group) Co. of China Ltd. (2318.HK: Quote, Profile , Research), the other contender to join the index, leapt 3.1 percent to HK$44.45 in heavy trade.

Hong Kong Exchanges and Clearing Ltd. (0388.HK: Quote, Profile , Research) also advanced in heavy trade, rising 3.3 percent to HK$79.45, tracking the market's bullish cycle.

Real estate developer Greentown China Holdings Ltd. (3900.HK: Quote, Profile , Research), the morning's second-most traded stock, slid 4.7 percent to HK$16.20 in resumed trading. It raised HK$2.31 billion (US$296 million) when it sold 141.2 million shares at the low end of a range, a source familiar with the deal said on Friday.

Greentown sold the shares at HK$16.35 apiece, a 4 percent discount to the stock's last closing price.

Publish date: 07-05-07 13:22
Source: Reuters.co.uk

British Land seeks Meadowhall investment partners

LONDON, April 24 (Reuters) - Property firm British Land (BLND.L: Quote, Profile , Research) said it was looking for investment partners for its 1.7 billion pounds ($3.4 billion) Meadowhall regional shopping centre in Sheffield as part of the firm's portfolio reshuffle.

The company, which signalled last year that it intended to seek one or more investment partners for Meadowhall once it had converted into real estate investment trust (REIT), said on Tuesday sales proceeds would be recycled into its 4 billion-pound development pipeline.

The group plans to remain the largest individual investor and act as fund and property asset manager for the 1.5 million square feet centre, which houses 270 retail units including House of Fraser, Debenhams, Marks & Spencer and Next.

It appointed agents Jones Lang LaSalle, Colliers CRE and Smith Young to market investment proposals for the group's largest single retail asset.

The asset generates annual net rental income in excess of 70 million pounds, growing from around 48 million pounds when the asset was acquired in 1999.

Shares in British Land, Britain's second-largest property firm, were up 0.5 percent to 1,483 pence by 1050 GMT.

Publish date: 24-04-07 14:18
Source: Reuters.co.uk

Overseas property gets cheaper for Brits

Yesterday the British pound reached a 15-year high against the US dollar - and while this might give the economists headaches it is great news for overseas property investors.

Whether you are looking for a place in the sun for the cold winter months or trying to make some money from rising house prices abroad, the strength of the pound means you can get more for your money.

"There has been a lot in the news about the benefits of shopping stateside, but people looking to buy property in the USA, Caribbean, China, Malaysia, Belize and a whole host of other emerging markets, should also look at financing their purchase now," said Mark Bodega, of HiFX.

"It's worth remembering that the last time the pound traded consistently above $2 was in 1975."

Sterling currently buys you 20 per cent more in dollars than it has on average over the last 20 years, but currency exchange experts are advising Britons to act now to secure the best rate.

"We always remind people that they would never agree to buy a property in the UK if they did not know how much it was going to cost them. If they agree to buy an overseas property without fixing the exchange rate at the outset, that's exactly the gamble they are taking," said Mr Bodega.

People buying an overseas property can take advantage of current interest rates by locking the rate in a forward contract.

This allows people to keep buy the foreign currency they will need now - at today's rates - and pay for it later up to two years into the future.

"Most property purchases abroad take between eight and 12 weeks to complete, so people need to think about currency fluctuation between the time of signing the contract and the final payment actually being sent," Mr Bodega said.

"It's even more important if you're buying off-plan as the average purchase time rises to between six to 24 months. Forward contracts are a great way for people looking to buy overseas to take advantage of the current favourable exchange rate."

Publish date: 19-04-07 10:40
Source: MyFinances.co.uk

Property market shifting to buyers says survey

The balance of power in the property market is beginning to shift from sellers to buyers, research by property website Propertyfinder has found.

Average initial offers fell to 2.3% below asking price in April, the lowest since July 2006, after a first quarter in which sellers could expect bids well above the figure advertised.

The slowdown appeared to be linked to first-time buyers reaching their financial limits, with new buyers falling to 22% of the market from one third in the same month last year.

‘Demand at the bottom end of the market is definitely calming, and there are signs that the rest of the market is following,’ said head of Propertyfinder Nicholas Leeming.

‘It is no wonder first-time buyers are holding off purchasing property – increases in the cost of borrowing most dramatically affect those without capital already invested in bricks and mortar.’

Recent research for the Council of Mortgage Lenders has also confirmed that the number of first-time buyers in the market is falling.

Stretched house price affordability has been compounded by rising interest rates with increasing expectations that interest rates will hit 5.5% before they begin to fall.

Easter is historically one of the busiest periods in the property sector and market data and consumer sentiment is typically at its most positive.

Publish date: 16-04-07 13:19
Source: Citywire.co.uk - Investment Solutions

Boom-and-bust warning as house prices soar 15%

BOOM and bust could still pose a threat to the property market, experts warned yesterday, as figures showed Scotland's buoyant housing sector continues to outstrip the rest of the UK.

Datamonitor, the market analyst, said the "outstanding" performance of the property market in 2006 and almost double-digit house-price inflation had renewed fears of a subsequent crash.

Spiralling levels of personal debt, increased interest rates and a riskier approach to lending adopted by some sub-prime mortgage providers could seriously impact on future prices, the research suggested.

The warning came as house prices in Aberdeen surged 10.3 per cent in the first quarter of this year - well ahead of recent UK-wide rises - while property values in Edinburgh have trebled in the last ten years, leaving first-time buyers struggling to get on to the property ladder.

Overall, prices in Scotland have gone up by 15.2 per cent in the past 12 months, compared with 9.5 per cent for the UK. They are forecast to rise by 7 per cent in the coming year, outperforming a predicted UK average of 4 per cent.

Karina Purang, financial services analyst at Datamonitor and author of yesterday's report, said: "We do not believe the housing market is on the road to a house-price crash, but the threat of a boom-and-bust cycle is still present.

"A number of issues, such as high levels of personal debt, averaging £4,522 per person, could have a considerable impact on the future performance of the mortgage market.

"Such buoyant housing activity cannot be sustained long-term and house prices cannot keep going up forever."

The report predicts that the UK mortgage market will continue to grow slowly over the next five years, with total gross advances by lenders rising by 2.6 per cent a year. The report noted that many households are feeling the pressure of high levels of debt and this had started to feed through to mortgage repayments. In addition, hikes in interest rates to curb inflation are likely to further burden consumers, particularly those with too much debt.

The report stated: "Given the current situation of high personal indebtedness, the sub-prime sector poses more risk than before.

While lenders are required to practice a responsible lending policy, there are players which are willing to take a riskier approach to lending by relaxing their criteria to attract more customers."

This, the report concludes, could have serious consequences for the mortgage market.

But Tim Crawford, group economist with HBOS, said Scotland's house-price growth was "the most stable it has ever been" and that a boom-bust cycle was unlikely.

He added: "Scotland has never had a house-price crash and the boom is still catching up with other parts of the UK, so there would be no real precedent."

HOUSE prices in Scotland's most expensive city have trebled in the past ten years, leaving first-time buyers struggling to get on the property ladder.

The latest report from the Edinburgh Solicitors Property Centre (ESPC) yesterday showed the average cost of a city property is now £207,669, three times the price of ten years ago, when sales averaged £68,195 in the first quarter of 1997.

Ron Smith, the ESPC's chief executive, said: "The level of growth in east-central Scotland, particularly in Edinburgh, [is] remarkable. The city has reported annual growth in excess of 10 per cent in four consecutive quarters."

Meanwhile, Aberdeen's booming economy has sent house prices so high they have almost caught the UK average. The Aberdeen Solicitors Property Centre said the average property price for the first quarter of 2007 was £187,305, compared with £168,071 at the end of 2006.

Publish date: 12-04-07 06:31
Source: The Scotsman