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News release


Asia property markets recording a quicker correction than global markets

Jones Lang LaSalle’s Global Market Perspective report for October states the Asian economy is recovering faster than the U.S. and U.K.

SYDNEY, 22 OCTOBER 2009 – The Asian property market is recording a more-rapid-than-expected rebound, with declines in office rents moderating in the September quarter across much of Asia and the likelihood that some markets are approaching a bottom.
Jones Lang LaSalle’s latest Global Market Perspective for October states that the worst of the global property meltdown is behind us and the case for recovery is gradually being bolstered by a strengthened global economy.  The Asian economy is at the forefront of this global economic recovery, led by strong growth in China.
Director of Global Capital Markets Research for Jones Lang LaSalle, John Sears said Australia was one of the markets within Asia that was approaching a market bottom.
“Sydney office capital values declined by approximately 23% from the peak, which is much lower than markets like London and New York where capital values fell closer to 60%.  With employment falling less than many overseas markets, a restricted supply pipeline and vacancy below historic averages, Sydney has the potential to be a leader in the global recovery,” Mr Sears said.
Australian Head of Capital Markets, John Talbot said commercial real estate and capital markets in Australia were ahead of most other countries from a cyclical perspective.
“Australia's current position at the head of the field reflects both the strength of the domestic economy and the relatively favourable supply/demand balance in most of Australia's individual property markets.
“The offshore perspective on Australia's property markets has changed radically in the past twelve months. Through 2008 it was widely and often argued that Australia lagged behind other markets.
“It was widely expected that the big slump in values that markets in the UK, US and many parts of Asia were experiencing still lay ahead of us.  However, this analysis has now proved not correct.
“Jones Lang LaSalle's third quarter research for Australia provides hard evidence that most markets are at or close to a trough. Domestic and offshore owners and investors in Australian markets will have to look ahead, not over their shoulders, if they are to take advantage of the opportunities that are emerging as 2010 approaches,” Mr Talbot said.

Director, International Investments for Jones Lang LaSalle, Simon Storry said the strength of the Asian economy was attracting renewed attention from foreign investors seeking attractive relative pricing.
“The fact that Australia is the first to raise interest rates post GFC is sending a clear signal to domestic markets and offshore that probably the worst of the tough economic times are behind us and Australia is in phase of sustainable expansion.
“The rise in the cash rate has received global media attention as Australia is the first country to lift its policy interest rates.  
“This will highlight for offshore investors that Australia is travelling through this global downturn remarkably well. Offshore investor interest in the domestic market is likely to be reinvigorated as a result,” Mr Storry said.