Smarting in Hong Kong
The SMART property expo reflects the status of global real estate
| Text : Elizabeth Kerr | | Photo : www.thinkstockphotos.com |
In early June, the annual SMART Investment & International Property Expo 2010 threw open its doors at the Hong Kong Convention and Exhibition Centre and right away it was obvious there was a change in the air. Held in a smaller hall than previous editions housed in the cavernous main hall (which was hosting the robustly attended Summer Wedding Service & Banquet Expo and HK Beauty & Makeup Fiesta) SMART welcomed a very different type of buyer than it did just a few years ago.
Speaking off the record, a local property industry professional summed it up best when saying, “This is far, far more focused than in the past. In 2006 and ’07, before the economy tanked, we saw a lot of speculators come through. That’s not the case this year. Most of the people registering are serious buyers or investors.”
And that may be a good thing in the long run. An exhibitor, also speaking anonymously, with a highly specialised resort product agreed. “This is the first time I’ve been here and I was a little surprised by how compact the room was. But I’m actually thrilled to see people walking around with chequebooks. For our property we’re not really interested in luring in-and-out speculators. We have a product that is a long-term investment. It’s nice to see a crowd that’s a little more intense.”
Most of the show’s exhibitors were in agreement on that. Fewer bodies with more serious intentions is always the preferred set of circumstances. SMART’s mood was exemplified in the title of Day 2’s keynote address by Intero Real Estate Services chair Robert Moles: “Investment Opportunities in Distressed Real Estate Markets Worldwide.” And “distressed” was the condition on everyone’s mind that weekend.
“The size of the show and what we expect this year is absolutely a reflection on the state of the global economy in general,” the property pro said. As a result, the focus of the show shifted just a little as well. Aside from property sales exhibitors, there were a great deal of booths offering alternative investments (wine, raw land) and many of the seminars had a decidedly educational and analytical angle. “People are being more careful with their money now, and thinking hard about where they put it. There’s a lot more attention given to the long-term upside to a certain property, and more thought about currencies,” another exhibitor said. SMART, it seems, was focused on being smart.
So who did make an appearance at the Expo this year? It’s not surprising that the relatively weak Australian dollar had brokers and investment advisors representing properties in all parts of Australia vying for buyer attention. Major property companies like Central Equity, FBC, PPG International and MLG Australia all had presences at the show and showcased the best the country had to offer.
Also out in force again were tropical vacation home developers and vendors from Thailand, Malaysia, Indonesia and an entry from Vanuatu in the South Pacific. Malaysian state representatives were actively promoting the Malaysian My Second Home programme, but individual developers were relying on the general stability of Malaysia’s market and the relatively low cost of property to highlight their products. Of particular interest to attendees was Berjaya Land’s Vasana 25, a luxury boutique development a stone’s throw from Kuala Lumpur’s city centre, which premiered its international sales at SMART. Berjaya’s Senior General Manager, Properties Marketing Mah Siew Wan hints that Berjaya came to the show with a purpose. “We’re marketing [Vasana] to locals and expats equally … [Any property like this] has got to appeal to both.” She went on to explain the infrastructure, location, amenities and house sizes made Vasana a good buy, and hoped to sell the remaining 18 units that weekend.
Though Thailand is in the grip of political turmoil that’s raising travel advisories all over the world, Thai property developers are still confident in the country’s basic appeal to second and vacation home investors. Developments in Hua Hin (Banyan Thailand), Bangkok (Le Monaco) and Phuket (By The Lake Villas) among others were on hand alongside property agencies featuring off-plan and second market real estate from all across the country. “Thailand will always be a popular choice for investors,” our industry pro stated. “It’s inexpensive when you consider what you get — and what you’d pay for similar properties elsewhere — and the only real market for these properties is overseas. Things settled down after the coup a few years back and they’ll settle down again.” (Look for more on Kuala Lumpur and Thailand in upcoming issues.)
SMART’s next show is October in Singapore, and there’s no way to determine if that will be a “subdued” affair as well. Though most states are showing signs of economic recovery, individual consumers are still hedging their bets and proceeding with caution. Real estate prices are rebounding overall, but speculators that often drive prices up are laying low for the time being. Chances are, however, the same kind of response can be expected and that the fall edition of SMART will again be a destination for genuine investors. That said a sea change occurred between 2007 and June 2010; who knows what June 2011 will hold.
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