Amli Residential Properties

Winners: Singapore, South Korea and the Philippines

Singapore had the largest Asian residential property price increases in 2006, with 9.5% in real terms (adjusted for inflation) price increases of the House.

There were also 9.3% real house price increases in South Korea, and 9.1% real increase in property prices in the Philippines. They were seen in the Global Property Guide House Price Indices, the largest collection of price indices of residential property.

Singapore strong in 2006, the rate of GDP growth at 7.9%, pushed up demand for goods from Singapore. The Urban Redevelopment Authority (URA) price index for private residential property rose 10% (9.5% in real terms) in 2006.

South Korea has also seen a sharp rise in property prices, despite efforts by the government continued to depress the market. The index of Kookmin Bank's house price rose 11.6% in December 2006 (9.3% in real terms) from a year earlier.

In the Philippines, the strong economic growth and reduced inflation contributed to the continued recovery of the real estate sector. In addition, demand for Filipino overseas workers (OFWs) and dual citizens has been strong, pushing prices. Luxury condominium prices in the Philippines rose 15% (9% in real terms) in 2006, following a rise in nominal prices by 11% in 2005, according to Colliers International.

Japan and Hong Kong are laggards

Japanese market for residential property continued to decline in 2006, despite repeated attempts by media to describe the market rallying. However, for urban land price index registered a small decline in 2006 (-2.8%) compared to last year (-4.7%).

property market in Hong Kong became negative (-2.13%) in 2006, after impressive gains in 2004 (27%) and 2005 (8%). higher interest rates in the U.S., mirrored directly in Hong Kong have been a major cause of the recession.

Taiwan crisis, political disorder seems to have frozen residential prices, with 0% satisfaction in 2006. In real terms, Taiwan has experienced a decline in house prices in 2006 (-1.7%). For three years before the second quarter of 2006, Taiwan index Sinyi house prices have increased by 17%.

In Malaysia, house prices did not keep pace with inflation. Malaysian property prices are now at the same level as 1995, in real terms.

Thailand saw the end to end its strong recovery post-Asian crisis property market, as the political crisis impact on the economy. House prices moved up just 1.9% in 2006 (-2.4% in real terms), after the 2005 price increase of 7% (1.5% in real terms), and 2004 up 9% (6% in real terms).

Indonesia managed to reduce 4Q 2006 inflation of 6% from 16% during the first three quarters. With the index of house prices rising by 6.6% in 2006, home prices rose 0.5% in real terms.

The 2007 elections - the risks abound

2007 is an election year in Korea, Taiwan and the Philippines, and political uncertainty is likely to increase. There will also be elections in Japan and Hong Kong, but they are unlikely to have much impact on the housing market. In Thailand, uncertainty will increase if elections are not called.

The Philippines. A victory for the party of President Arroyo in the coming congressional elections would be positive for real estate. election years in the Philippines to the money supply, but also increased uncertainty. But if Arroyo wins enough seats in Congress, she will push for a constitutional change, removing constitutional limits on foreign ownership of real estate and companies - good for real estate.

South Korea. The economic interventionism of left of center.