Hong Kong has seen luxury property prices climb 40% in the last few months, with wealthy Chinese government officials spending enormous amounts of money on the most expensive apartment in Asia.
“Hong Kong’s government is ‘very concerned’ about the risk of an asset bubble developing although a bubble is not apparent yet, Financial Secretary John Tsang told legislators on Monday, referring to a surge in the city’s property prices this year,” according to the Sydney Herald.
Residential property prices have climbed 30% this year, and price gains for luxury properties have topped 40%, as the city has drawn a huge capital rush amounting to a record $73 billion between October 2008 and November 13th 2009, as foreign investors are attracted by the low interest rates. Affluent mainland Chinese have also been snagging some luxury Hong Kong properties.
There is “Massive interest from buyers at luxury developments throughout India,” according to Asia Property Report. This is somewhat competitive with the information on the Indian luxury real estate market over the last two years-with many developers switching to lower cost housing.
In India, the luxury property market is loaded, as buyers wait in line for popular properties. As the market rebounds, builders have started construction on projects that had previously been held. “There are buyers who were sitting on the fence since last year who have now decided to buy,” said Pranay Vakil, Chairman, Knight Frank India Private Limited. “Our research has shown that there is a market for such houses and people are ready to pay for luxury,” added Lalit Kumar Jain, Chairman and Managing Director of Pune-based Kumar Builders.
In Las Vegas, the City Center development has finally opened up three properties. “Since May 2006, when MGM Mirage imploded the Boardwalk Hotel on the Strip, Las Vegas residents have patiently waited to see what the state’s largest employer had in store for the 76 acres of prime real estate between Bellagio and Monte Carlo. They got their first look this week. Company executives cut ribbons and opened doors on three components of the massive CityCenter, a high-rise campus accented with striking architecture, public art, the newest technology and an emphasis on sustainability,” says The Las Vegas Sun.
Toll Brothers reported yet another above-expectations loss for the fourth quarter, registering a $111.4 million loss, worse than analysts’ expectations and last year’s losses. This is an excerpt from the report: “Toll Brothers today reported a FY 2009 fourth-quarter net loss of $111.4 million, or $0.68 per share diluted. The loss included $85.5 million of non-cash pre-tax inventory write-downs, a pre-tax charge of $11.6 million due to early retirement of debt and a $14.6 million non-cash expense for deferred tax asset valuation allowances. Excluding write-downs and charges for early retirement of debt, FY 2009’s fourth quarter pre-tax loss was $9.6 million.
FY 2008’s fourth-quarter net loss was $78.8 million, or $0.49 per share diluted, which included $175.9 million of non-cash pre-tax inventory and other write-downs and an $11.1 million non-cash expense for deferred tax asset valuation aids. FY 2008’s fourth-quarter pre-tax earnings, excluding inventory and other write-downs, were $69.9 million.
At its full fiscal year ending on October 31, 2009, the Company reported a net loss of $755.8 million, or $4.68 per share diluted, which was impacted by non-cash pre-tax inventory and other write-downs totaling $476.7 million, a pre-tax charge of $13.7 million related to the early retirement of debt and a $458.3 million non-cash expense for deferred tax asset valuation contributions. Excluding inventory and other write-downs and charges for early retirement of debt, FY 2009’s full-year pre-tax loss was $6.1 million.
FY 2008’s full-year net loss was $297.8 million, or $1.88 per share diluted, which was impacted by non-cash pre-tax inventory and other write-downs totaling $848.9 million, a non-cash $24.1 million expense for deferred tax valuation allowances and $40.2 million of other pre-tax income resultant to net proceeds received from a condemnation judgment. FY 2008’s full-year pre-tax earnings were $341.9 million, excluding inventory and other write-downs and the condemnation proceeds.”
Via: Luxury Property