Market Indications In the first half of 2007

Kuala Lumpur Condominium Market

Market Indications
In the first half of 2007, the high-end condominium market experienced a significant improvement in the number of units sold. Greater take-up was noted following the relaxation of rules for foreigners to purchase residential property as well as obtain end financing since the end of 2006 and the waiver of real property gains tax commencing 1st April 2007.

Increasing demand from foreign purchasers was noted for high-end condominiums, especially in the KLCC area. The renewed interest from both locals and foreigners has led to upward price revisions by developers of 25% for high-end condominiums since the second half of 2006.


Supply & Demand
The first half of 2007 saw encouraging take-up for high-end condominiums, an en bloc transaction and a full sales rate achieved for a few projects in Kuala Lumpur. Local high net-worth and foreign property investors remained the main sources of demand with the latter in the lead.

A few notable projects in the KLCC vicinity have reported a full sales rate in the first half of the year, including Pavilion Residences, Hampshire Residences and 2 Hampshire. This is due to improved confidence in the market caused by positive changes in policies by the government.

In Bangsar, Bangsar Suria an older condominium development was sold to Kuala Lumpur City Corporation Bhd (KLCCB) for RM34.5 million. KLCCB, which owns Sucasa Serviced Apartments, plans to turn Bangsar Suria into serviced apartments for business travellers and expatriate communities in Bangsar.

Icon KL, the proposed luxury condominium project in Kuala Lumpur City by Mezzon Development Sdn Bhd that was initially planned to be launched to the public, has instead been sold to E&O Property Development Sdn Bhd. E&O plans to redesign and launch the development later.

Notable launches in the city in the first half of 2007 include Ampersand@Kia Peng near KLCC and Iringan Hijau in Ampang Hilir, competitively priced at RM720 per sq ft to RM920 per sq ft and RM800 to RM900 per sq ft respectively.

No new launches were noted in the Bangsar locality but there were three launches in the Mont’ Kiara area. An encouraging response for Lumina Kiara was noted with the mixed residential development reported to have achieved a 52% sales rate after its pre-launch in April.

Matahari Desa Sri Hartamas, a high-end condominium in Desa Sri Hartamas launched in April has sold approximately 63 units within two months despite its higher price tag at about RM700 to RM800 per sq ft.

The second half of 2007 is expected to be exciting with an anticipated 14 new launches. Apart from that, the second half will see the completion of Marc Residences, Binjai Residency, CapSquare Residences, 2 Hampshire, The Binjai, Madge Residences, The Madge and Seri Hening Residence which will add another 1,303 units to the total supply of high-end condominiums in the city centre.

Ampang Hilir will see a new high-end condominium project entering the market this coming July known as Seri Hening Residence. This is the first project by Great Eastern Life Assurance (Malaysia) Bhd which is being completed and made available solely for leasing. With typical built-ups ranging from 1,860 sq ft to 3,400 sq ft, the rental rate starts from RM8,500 per month.

Damansara Heights will soon see two new high-end condominium/ serviced apartment projects offering a total supply of 426 units, namely Clearwater Residences and a serviced apartment project by Panareno Sdn Bhd, a company formed by Lion Group, AIG and Singapore developers Heeton and Koh Brothers. Tight inventory levels in Damansara Heights are expected to help encourage sales of upcoming projects.

Sunway Palazzio, an upmarket condominium development located in the boundary of Sri Hartamas and Damansara Heights was well received during its launch in Singapore at a new benchmark pricing of RM840 per sq ft. Mont’ Kiara will soon see the launch of MK 11 and Seni Mont’ Kiara, with a total supply of 924 units. Both projects are expected to follow the higher pricing levels in Mont’ Kiara, at more than RM600 per sq ft.


Prices & Rentals
During the review period, prices and rentals for existing condominiums were stable despite the rising price levels of new launches. The average gross yields range between 6.5% and 7.5% for high-end condominiums in Kuala Lumpur with downward pressure prevailing.

The limited existing supply in Damansara Heights and Kenny Hills has pushed the capital values of existing condominiums in these areas to a higher rate of around RM500 to RM700 per sq ft.

The recent amendments to the Foreign Investment Guidelines and the seemingly low pricing of Kuala Lumpur condominiums compared to its neighbour Singapore have enticed more foreign investors to this market segment.


Outlook
The completion of 1,303 units in the second half of 2007 will see competition to lure tenants, especially expatriates. This will ease rental levels and drive yields downwards. Prices of existing condominiums will move up in tandem with the increased prices of new launches.

New launches of condominiums are expected to receive favourable response from both foreigners and local investors.


Kuala Lumpur Office Market

Market Indications
Kuala Lumpur office market is robust, experiencing increasing demand for prime offices with the expansion of the services sector particularly in oil & gas, information technology and financial services.

With the market poised to improve in terms of rents and capital values, investment in this sector is strong with funds from countries such as Singapore, Australia and Hong Kong looking to invest in prime offices while some are even participating in office developments around Kuala Lumpur City through partnership with local developers.

The newly launched office projects in prime locations with green technologies for energy saving and modern architecture are raising industry standards to meet international expectations.

Supply & Demand
Total supply of office space in Kuala Lumpur City stands at 39 million sq ft with no major new offices completed in the first half of 2007. In the Central Business District, CapSquare’s signature offices are waiting to receive their Certificate of Fitness for Occupation. The signature offices comprise four blocks of low–rise offices totalling over 150,000 sq ft of net space.

Continued demand for offices in Decentralised KL has encouraged an increase in supply of nearly 10% to about 10 million sq ft in the first half of 2007. New supply includes 1 Sentral Tower (350,000 sq ft) in KL Sentral, UOA Pantai, Off Jalan Pantai (160,000 sq ft), Centrepoint-South Tower (230,000 sq ft) in Mid Valley City and Menara TSH (125,000 sq ft) in Damansara Heights.

Growing interest in office space from local and multinational firms in Decentralised KL will add to the growth of these areas, further supported by better accessibility with SPRINT and the LDP Highway connecting Petaling Jaya to Kuala Lumpur.

The second half of the year will see more new offices entering the market in Decentralised KL such as Plaza Cygal in Pantai (Tower 2), Centrepoint-North Tower in Mid Valley City, UOA Damansara 2 in Damansara Heights and Menara UAC in Damansara Perdana. In Kuala Lumpur City, Lot 170 along Jalan Perak, a prime A office building is anticipated to be completed.

Projects to commence construction this year include Glomac Tower and Menara Waqaf both within the vicinity of the KLCC and an unnamed office development project along Jalan Dungun in Damansara Heights. Island & Peninsular Bhd (I&P) plans to develop two office buildings in Damansara Heights, Kuala Lumpur by end of the year.

Glomac Tower, a 40-storey prime A office block with 500,000 sq ft in net lettable space will be sited opposite the Mandarin Oriental Hotel while Menara Waqaf along Jalan Perak will be a 34-storey office development with net floor area of 10,000 sq ft per floor.

One Mont’ Kiara which commenced construction this year is an integrated development by Ireka Land Sdn Bhd partnering CapitaLand Commercial. It comprises a 4-storey retail podium and 2 blocks of offices totalling 579,000 sq ft net.

The Quill group will design and build a 24-storey prime A office building to be leased to HSBC next to its current headquarters in Leboh Ampang with a net lettable area of 175,000 sq ft. Construction is expected to start in June for completion by the first quarter of 2010.

Favourable economic climate has encouraged a healthy demand for offices in good locations and modern facilities. The average occupancy for offices in the Golden Triangle Kuala Lumpur City is at 91% while the Central Business District recorded a lower 80%. The highest of 92% was in Damansara Heights.


Rentals & Capital Values
In the first half of the year, four transactions for offices in KL City have registered capital values between RM407 per sq ft to RM536 per sq ft, while an office building to be completed in KL Sentral has been sold at RM525 per sq ft.

AmanahRaya REIT, the first REIT sponsored by a government public trustee, injected two office buildings namely Wisma Amanah Raya along Jalan Ampang and Wisma Amanah Raya Bhd in Damansara Heights to their portfolio of properties.

The proposed Tower B in Lot J, KL Sentral being developed by Malaysian Resources Corp Berhad, was sold to Malaysian Industrial Development Authority (MIDA). Works started in December 2006 and are due for completion in mid 2009.

Quill Capita REIT is injecting Wisma Technip into its trust. The capital values for prime A office buildings in the KLCC vicinity is in excess of RM650 per sq ft net supported by better rents and lower yield expectations. The price divide between prime and secondary offices is widening.

Rental rates are generally increasing with offices in the Golden Triangle achieving an average of RM5.80 per sq ft, marked an increase of around 5% increase from last year. Rents in the Central Business District rose more slowly, with an increase of 4% from last year, taking average rents to RM3.40 per sq ft.

Damansara Heights performed well with an average of RM3.80 per sq ft, due to prime A offices commanding better rents.

The rental market for prime offices in Kuala Lumpur City and Damansara Heights is healthy, which is reflected by prime A offices in the Golden Triangle achieving RM5.50 to RM8.00 per sq ft while Decentralised KL prime office rentals are at RM5.00 per sq ft.


Outlook
Further positive absorption is anticipated in the second half of the year and increasing demand for good quality offices will push capital prices to break new ground. Investment demand will push yields down in anticipation of capital appreciation. The continued growth of the services sector will fuel occupational demand for office space.


Klang Valley Retail Market

Market Indications
Retail sales in Klang Valley improved in the first half of the year underpinned by the growth in tourist arrivals from both inbound and domestic tourism. As of 10th May 2007, tourist arrivals in Malaysia reached 8.9 million, approximately 40% growth compared to the tourist arrivals in the same period in 2006. In addition, the increases in employment and salaries in the service sectors and recent pay rise for government servants together pushed up retail sales which are therefore poised to expand by 8% in the year to reach an estimated RM64 billion.

The leasing of several prominent centres in Kuala Lumpur City have received favourable response from retailers, especially from some notable foreign brands such as EQ.IQ, Bebe, and Massimo Dutti in Pavilion KL, Robinsons in The Gardens and Ted Baker in Bangsar Village II.

Retail malls in Malaysia have evolved and developers are now placing greater emphasis on food, beverages and entertainment, attributing this to the change in lifestyle of the younger generation. Apart from the larger shopping centres to be completed this year such as Pavilion KL, Sunway Pyramid extension and The Gardens, this year has also seen the construction of a few smaller lifestyle malls, eg Sooka Sentral, CapSquare and One Mont’ Kiara. These lifestyle malls focus on food, beverages, entertainment and niche retail stores that denote contemporary lifestyle.


Supply & Demand
The first half of the year saw the entry of Bangsar Village Phase II, where about 80% of the stores have opened since January. The second half of 2007 will see at least 3.1 million sq ft of retail space added to the market including Pavilion Kuala Lumpur, The Gardens and Sunway Pyramid extension, all scheduled to be ready in September. Most of these centres have reported good take-up with leasing rates of more than 90%.

The younger working population in Malaysia has contributed to the growth of lifestyle malls with a number of developments coming on stream, namely a 4-storey retail centre in CapSquare, Sooka Sentral in KL Sentral, One Mont’ Kiara in Mont’ Kiara and Giza in Sunway Damansara. Together they will supply in total about 935,200 sq ft net of rental space.

CapSquare, which is slated for opening in September 2007, will feature a 300-metre retail street with Golden Screen Cinema as its anchor tenant. The lifestyle retail centre houses fashion, beauty and health stores with its ground floor to be occupied by food & beverage outlets.

Before the launch of the main 840,000 sq ft shopping centre in KL Sentral, the integrated development will see an upcoming lifestyle mall located next to Stesen Sentral, known as Sooka Sentral.

Construction works started early this year for completion this coming November to complement the demand which mainly come from its transportation hub and Bangsar. The lifestyle mall will house three levels of food & beverage outlets whilst another three floors will be anchored by beauty and fitness shops.

Tourist shoppers will remain a force in the retail market place, particularly the high spending Middle East tourists with average retail spending of RM2,400 per person. Continued growth of tourism receipts should provide support to the retail market in the next half of the year.


Prices & Rentals
The first half of 2007 saw the transaction of the 25-year old Atria shopping complex in Damansara Jaya to OSK Property Holdings Bhd. The shopping centre with net lettable area of 208,401 sq ft was sold for RM75 million (RM360 per sq ft). The centre is to be renovated, extended and repositioned as another neighbourhood lifestyle mall.

Capital values for shopping centres are likely to go up with more developers planning to unlock their assets by injecting shopping malls into real estate investment trusts (REITs). For instance, Sunway City is in the midst of setting up their REIT which includes the injection of its retail properties, Sunway Pyramid and Sunway Carnival Mall by early 2008. The Employees Provident Fund (EPF) will also join in with the proposed REIT that contains the EPF-owned Giant hypermarkets.

Capital values of en bloc prime centres in Bukit Bintang are in excess of RM1,800 per sq ft. This is expected to further improve as yields are being driven lower due to anticipation in capital appreciation and potential asset enhancement possibilities.

Good retail sales, were most notable in the prime centres, have encouraged rental increases of 5% to 15% as more foreign retail brands show interest. Rentals for secondary centres withstood downward pressure also due to encouraging sales attributed to higher spending power by the low- to mid-income group, especially government servants.


Outlook
The retail sector is poised to remain robust with the completion of at least 3.1 million sq ft of retail space in the Klang Valley by year-end. The buoyant stock market and a range of initiatives undertaken by the government to encourage tourist arrivals will further boost household and tourist spending.


Kuala Lumpur Hotel Market

Market Indications
The hotel industry in Kuala Lumpur City has experienced consistent growth since 2003 reflected by strong occupancy and competitive room rates recovering from a series of events such as SARS, terrorist alarm and the tsunami scare. There were 17.5 million tourist arrivals in 2006 compared to 16.4 million in 2005, contributing to higher hotel occupancies throughout the year. Malaysia has been voted the ‘Best Destination for 2006’ and the most affordable country compared to other Asian cities such as Tokyo, Hong Kong and Singapore. This year, 2007 as Visit Malaysia Year (VMY), comes in conjunction with the Malaysia’s 50th anniversary of independence and the government campaign is aimed at drawing tourists from Asean, East Asian, European and North American countries. The Malaysia Association of Hotel Owners (MAHO) has projected that average hotel occupancies will hit the 75% mark in 2007 and hotels located within the prime shopping belts of Bukit Bintang and KLCC will enjoy even higher occupancies.

The Kuala Lumpur Convention Centre (KLCC) has also been a catalyst to the growth of the hotel industry as the number of international world-class events held at the state-of-art facility has contributed to demand for hotel rooms in the vicinity. Hoteliers are optimistic that occupancy and room rates will be more consistent throughout the year if more international events are hosted here. Refurbishment and renovations are being carried out in several Kuala Lumpur City hotels to maintain market share as well as to keep up with current trends and demand.

Between January 2006 and May 2007, six hotels in the Klang Valley namely The Millennium, Istana Hotel, Sheraton Imperial, Park Royal, Holiday Inn Glenmarie and The Saujana have undergone renovation and refurbishment works at a total cost of RM308 million. The Millennium KL officially opened for business in September 2007 to replace The Regent. This newly re-branded hotel underwent refurbishment works which commenced in January this year at a cost of RM120 million. In February 2007, Istana Hotel completed its RM15 million refurbishment exercise with traditional Malay architecture as its unique selling point. The Holiday Inn Glenmarie started its RM11 million refurbishment programme in October 2006 showing its commitment to meet quality global standards and changing needs.


Supply & Demand
The current supply of 4-star and 5-star hotel rooms in the Kuala Lumpur City stands at 6,752 and 9,092 respectively, mostly along the prime streets of Jalan Sultan Ismail, Jalan Ampang, Jalan Bukit Bintang and in the KLCC locality.

It is anticipated that another 650 rooms will enter the market from two 5-star hotel projects which are currently under planning and expected to commence construction this year. These projects will set a benchmark in room pricing for 5-star hotels due to their strategic location and high standards set by their international hotel operators.

The annual average occupancy rates for both 4-star and 5-star hotels in Kuala Lumpur City were stable at 70% in 2005 and 2006. Up to May 2007, statistics so far show a recorded average occupancy rate of 66% and according to the MAHO, the rate is projected to reach 75% for the full year of 2007 attributed to higher tourist arrivals during the second half of VMY 2007.


Average Room Rates & Capital Values
Most of the luxury hotels have gradually increased their daily room rates reporting an average increase of 3% to 4% in the first half of 2007. Average Room Rate (ARR) for 5-star and 4-star hotels recorded in May 2007 were about RM290 and RM180 respectively. Both ARRs and occupancy are projected to grow steadily.

Recorded sales of 4-star hotels show capital values of above RM400,000 per room and up to RM1 million per room for the 5-star Westin nestled at the prime area of Jalan Bukit Bintang.


Outlook
Tourist arrivals are projected to breach the 20 million mark with tourism receipts expected to grow to RM44.5 billion in 2007. The hotel market is set to continue enjoying healthy occupancies and increasing room rates.


Penang Property Market

Market Indications
The Government’s upcoming initiative to designate Penang as the hub of the new northern development region encompassing Perlis, Kedah and Perak coupled with the extensive infrastructure projects will have a big impact on the real estate sector of the State.

• With the entry of more Klang Valley based developers into the State, the greater competition among the big players will see the creation of higher quality developments with new lifestyle concepts and better designed homes.

• With affluent Penangites’ preference for landed housing, many developers have responded to this with the launching of several schemes such as E&O’s Seri Tanjung Pinang; Hunza’s Alila; SP Setia’s Setia Pearl Island and Mah Sing Group’s Southbay Villas.

• The relaxation of rules on purchases of residential units by foreigners has helped boost the high-end condominium sector of both new and completed projects as many foreigners have bought homes here under the Malaysia My Second Home (MM2H) programme.

• The waiver from Real Property Gains Tax with effect from 1st April 2007 has also contributed to higher activity in the residential sector.

• It was announced that construction work on the second bridge will commence in early 2008 with assistance from Export Import Bank of China (Exim Bank).


High-End Condominium

• The completion of The View and Bayswater Condominium in the south west of the island contributed an additional 560 units during the first half of 2007.

• Supply will be further increased when projects like The Cove, The Mayfair, Putra Marine are completed by the end of the year.

• The developer of the latest two high-end condominium projects, the “Infinity” and “Gurney Paragon” has reported good take-up by foreigners who reportedly purchased a third of the 10% sold during their soft launches.

• The “Infinity” is for sale from RM383 per sq ft and RM405 per sq ft for 3,700 sq ft and 4,700 sq ft units respectively whilst sale prices for Gurney Paragon start from RM400 per sq ft for 4,600 sq ft units and from RM460 per sq ft for 2,800 sq ft units.

• Prices of new projects within the sought after areas of Pulau Tikus and Tanjung Bungah range from RM350 to RM500 per sq ft.

• In Pulau Tikus, monthly rentals for fully furnished units range from RM4,000 to RM10,000 where sizes range from 1,800 sq ft to 5,000 sq ft.


Offices

• The supply of office space increased by 80,000 sq ft with Menara Great Eastern completed in the first half of 2007.

• In the south west district within close proximity to the Bayan Lepas Industrial Park and Penang International Airport, three new buildings namely Suntech, The CEO and IJM’s new corporate office are currently under various stages of construction.

• Occupancy rates of the better grade office buildings average 72%.

• No en bloc sales of office buildings were recorded in the first half of 2007.

• Capital values of prime office space generally remained unchanged from the second half of 2006 level of RM220 to RM260 per sq ft whilst those of secondary offices range from RM110 to RM150 per sq ft.

• With supply in excess of demand, market rentals of prime office buildings generally remained unchanged at RM2.20 to RM2.70 per sq ft gross whilst secondary buildings average RM1.50 to RM2.00 per sq ft per month.


Retail

• The retail industry is set to grow with the anticipation of more tourist arrivals projected by the government in which Penang enjoys a 33.8% of the market share.

• The supply of retail space increased by another 610,000 sq ft in the first half of 2007 with the recent opening of Sunway Carnival (NLA of 500,000 sq ft) in Seberang Jaya on the mainland and the neigbourhood Pan Palace Plaza (110,000 sq ft) in Sg Dua on the island, bringing the total to 5.422 million sq ft.

• Future supply will be further increased when the following three projects are completed:

• Occupancy rates of the prime shopping malls range from 85% to 95% whilst those of secondary complexes average 55% to 70%.

• Modern shopping malls are in demand from investors as evidenced by the sale of Island Plaza (320,000 sq ft net lettable area) to Asia Mall Private Ltd, a company formed under a US based insurance group.

• Gross rentals of ground floor retail space in prime centres generally remain unchanged from the second half of 2006 levels, ranging from RM15 to RM27 per sq ft per month depending on the location and size of the units.


Outlook
The overall outlook is good as the impending infrastructural works and relaxation of rules will have a positive impact on the property sector. The general residential sector is expected to remain strong although the sales performance of high end condominiums may taper off a little due to the increasing supply. The office market is not expected to change much whilst the retail sector will be increasingly competitive as more centres are completed.


Johor Bahru Property Market

Market Indications

• Over the first half of 2007, little has progressed from the drawing board to implementation for the pump priming initiatives by the Government to improve the Johor economy. However, sentiments remain positive towards the concerted effort by the Government through its proposed expenditures on infrastructure projects under the 9th Malaysian Plan (9MP).

• Interest and enquiries by foreign investors continue to gain momentum on the Iskandar Development Region (IDR), as more information on the development as well as the region and its governing structure are crystalised and revealed to the public.

• At this initial stage, the government is fulfilling the role of the main driver and promoter of IDR. The enthusiastic interactions between the governments of Malaysia and Singapore on IDR is particularly encouraging.

• Keen interest has also been expressed by foreign investors from the Middle East and China. The government is expected to capitalise on these optimistic prospects and by securing firm commitments from investors.

• One notable project that has been added to the market recently is the RM1.4 billion Asia Petroleum Hub (APH) on a 40 hectares reclaimed island off Tanjung Bin Petrochemical Area. The APH, to be completed by 2009, provides integrated bunkering services to ships and forms part of the petroleum trading network and bulk-gateway to regional and domestic markets.


Residential

• Transaction levels on conventional properties such as terraced and semi-detached units have not experienced significant movements.

• Sales of some of the completed double-storey terraces (with Certificate of Fitness for Occupation) at Tebrau Development Corridor have improved upon a reduction in pricing, from about RM280,000 to RM250,000 per unit.

• Some of the high end properties located within the IDR at Nusajaya have been doing well. Bungalow lots at Leisure Farm have achieved higher pricing at around RM38 and above per sq ft, an increase of RM3 and above over 2006 prices.

• The pricing of bungalow lots in Ledang Heights has increased from RM36 per sq ft in 2006 to RM39 per sq ft. The prices of other bungalow lots located nearer to Johor Bahru have also experienced some upward movement after satisfactory sales in 2006.

• Prices of bungalow lots in Taman Impian Emas have increased from RM55 per sq ft to RM65 per sq ft.

• Taman Ponderosa sold its bungalow lots at between RM60 per sq ft to RM80 per sq ft in 2006, current pricing is at RM80 per sq ft.

• For high-rise exclusive residential properties, CintaAyu Resort Apartments at Pulai Springs Resort have been successful with a sale and leaseback scheme, offering 7% guaranteed rental return for 3 years. An estimated 65% of the 313 units have been sold, mostly to foreign investors from Singapore, prices ranging between RM595 per sq ft and RM658 per sq ft, for built-up areas from 434 sq ft to 2,037 sq ft.
Offices

• Demand and supply of purpose-built office space in Johor Bahru have remained stagnant compared to second half of 2006. The same status quo applies in respect of occupancy and rental rates.

• The average occupancy rate hovers around 64% for the 5.9 million sq ft available in the market.

• Prime space is let at an average of RM2.30 per sq ft gross per month whilst offices at secondary locations average RM1.20 per sq ft gross per month.


Retail

• There has been no substantial change in the retail sector with regards to demand and supply in the retail sector. Total supply of retail space is estimated at 8.2 million sq ft and approximately 65% is occupied.

• Prime gross rents of shoping centres which are doing well (with occupancy rates in excess of 85%) range from RM15 to RM25 per sq ft per month.

• The trend of decentralisation of mid-size shopping centres from the city centre and its periphery to larger suburban regional malls has been given a boost by the sale of a 37.78 acres of commercial land at Taman Bukit Indah in the IDR. Sold by SP Setia Bhd to Raion Capital Bhd in February at a record high of RM65 per sq ft (compared to the Aeon’s Tebrau City’s 30-acre site which sold for RM30 per sq ft in 2003), the purchaser will build a shopping mall to be leased to Aeon Co (M) Bhd for fifteen years, with Jusco as the anchor tenant.

• Other new hypermarkets proposed around Johor Bahru include Tesco stores at Taman Bukit Indah (proposed) and Desa Tebrau (under construction) and a Carrefour store at Taman Sutera Utama.


Outlook
The outlook for the property market in Johor Bahru is positive, buoyed by the optimistic expectations on the economic benefits to be reaped from IDR. The markets for conventional residential properties, offices and shopping centres will remain competitive.

Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, financial and corporate institutions. All recognise the need for the provision of expert independent advice customised to their specific needs.