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Thread: S'pore slips to 16th in real estate transparency ranking

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    Default S'pore slips to 16th in real estate transparency ranking

    http://www.businesstimes.com.sg/sub/...91914,00.html?

    Published June 24, 2010

    S'pore slips to 16th in real estate transparency ranking

    Its score remained the same while other markets improved theirs

    By UMA SHANKARI


    SINGAPORE has slipped two places to 16th in a ranking of the transparency of major real estate markets worldwide.

    The city-state's position in the latest Global Real Estate Transparency Index compiled by Jones Lang LaSalle (JLL) fell as other countries' scores improved, while Singapore's remained the same.

    Singapore scored 1.73, which placed it 14th in the previous index. But with the same score this year, Singapore has taken 16th spot, as several European nations including Sweden, Ireland and France improved their scores. A score of one is the best and five is worst.

    According to the index, Australia is now the world's most transparent real estate market. In the Asia-Pacific, Australia and New Zealand (fourth globally) are the region's most transparent markets, followed by Singapore and Hong Kong (18th globally).

    The greatest improvements in transparency in the region were recorded in China and India.

    'The big improvement for China and India has been mainly due to increased data availability and ongoing regulatory changes,' said Jane Murray, JLL's head of research for the Asia-Pacific.

    In both markets, a recent boom in real estate contributed to the improvements as public and private sector players took steps to promote transparency, she said. 'International corporate occupiers and investors are increasingly demanding better information on market fundamentals, while government agencies and market regulators have made slow but steady progress on the regulatory and legal front.'

    Singapore and Hong Kong are classified as 'transparent' but not 'highly transparent' because there is room for improvement in two areas for both markets, Dr Murray said. Both countries lack investment performance indices, for example, she said.

    In light of the global financial crisis, the index assessed - for the first time - the transparency of the real estate debt markets in terms of the breadth and depth of data available on commercial real estate debt.

    Factors such as outstanding balances, maturities and defaults, as well as how thoroughly real estate debt on banks' balance sheets is monitored, were considered. Singapore did well in this aspect, scoring high for its regulatory and legal environment.

    Alastair Hughes, JLL's chief executive for the Asia-Pacific, said one of the chief concerns for international real estate investors is where to place their capital safely.

    The index helps investors and occupiers operating in foreign markets to anticipate challenges, he said. And for governments and industry organisations, the index provides a gauge to help improve transparency in their home markets.


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    Default S'pore property market 'third most transparent in Asia-Pacific'

    http://www.straitstimes.com/Money/St...ry_544725.html

    Jun 24, 2010

    S'pore property market 'third most transparent in Asia-Pacific'

    By Joyce Teo


    SINGAPORE is ranked the third most transparent property market in Asia-Pacific, according to a key industry index.

    The league table places Singapore at 16th worldwide, two spots ahead of Hong Kong but behind regional rivals Australia, ranked first, and New Zealand at fourth.

    Singapore has slipped two places from the last survey in 2008. Its score has remained unchanged but other countries have moved up the ladder.

    'Rising levels of transparency are associated with rising levels of foreign direct investment, a powerful incentive for encouraging the free flow of information and the fair and consistent application of local property law,' said Jones Lang LaSalle, which compiled the index with its unit LaSalle Investment Management.

    More transparent market conditions allow for quicker investment deals between one foreign investor and another, it said.

    The index, which was started in 1999 and is updated every two years, covers all property sectors, though the bulk comprises commercial real estate.

    It assessed 81 markets under five categories - performance measurement, market fundamentals, listed vehicles, legal and regulatory environment and the transaction process.

    Jones Lang LaSalle's South-east Asia research head, Dr Chua Yang Liang, said the index showed that Singapore's strength lies in its regulatory and legal environment.

    'The transparency of our regulatory framework supported the influx of US$4.7 billion (S$6.4 billion), which is more than half of the total dollar value investments, into the commercial asset market during the peak in 2007,' he said.

    Singapore can lift its ranking by improving market performance and the transaction process such as introducing more openness, said Jones Lang LaSalle Asia-Pacific research head Jane Murray.

    Dr Chua cited the launch of the National University of Singapore residential price index, an alternative to the Urban Redevelopment Authority service, as a move in the right direction.

    He added that recent government moves to increase the level of professionalism and general practices of real estate agents are long overdue.

    'As a key vital component in the real economy, the real estate industry needs to strengthen its ethical standards and the eventual regulatory structure if enforced will surely push Singapore further up on the rankings,' said Dr Chua.

    In Asia-Pacific, Singapore ranks one place ahead of Hong Kong after new questions on commercial real estate debt - a contributing factor of the financial crisis - were considered.

    Hong Kong is 'more laissez-faire' in the regulatory sector and its monitoring of debt is slightly less rigorous than in Singapore, Dr Murray said.

    Overall, the index showed a notable slowdown in the progress of real estate transparency over the past two years, suggesting that industry players were focusing on survival rather than market advancement during the financial turmoil.

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