The commercial property market in Asia has shown signs of slowing down due to the regional economic downturn. While occupancy rates remain high in regional business hubs such as Singapore and Hong Kong, the overall commercial property market in Asia remains vulnerable to global financial market turbulence and negative economic sentiment. The following is a overview of the commercial property market in Asia and our services to support client investment in the commercial property market in Asia:

1.

According to Irish business portal Finfacts, global commercial property transaction volumes in the first half of 2008 fell 41% from the corresponding period in 2007. Cross-border investment activity accounted for almost 45% of total transaction volumes globally.

Overall transactions for Asia Pacific commercial property dropped just 0.3% in the 12 months from first half 2007. However, in local currency terms, volumes were down by 9%. Activity was supported by domestic investors as cross-border investment declined from 46% in the first half of 2007 to 34% after the first half of 2008.

Cross-border activity in the commercial property market in Asia accounted for US$19 billion in the first half of 2008. Within South East Asia, Singapore in particular showed solid commercial property growth of 20% from the first half of 2007, with total investment volumes reaching US$4.8 billion.

4.

Reasons for changes in transaction volume include i) rising costs and difficulties in borrowing funds and ii) the unwillingness of vendors to lower expectations.

5.

In the commercial retail property market in Asia, tighter credit, inflation and uncertainty about global economies lead retailers to be cautious about expanding in the first half of 2008. A report from CB Richard Ellis on Asia retail property showed markets such as Hong Kong, Shanghai and Singapore still experiencing rental increases for prime retail areas, illustrating solid demand for prime street front shop space.

6.

Asia Property Consultants assists clients with renting, purchasing or selling commercial property in Asia. Our consultants manage our clients' needs from start to finish so they can focus on their business. Services provided in the commercial property market include:

i)

Arranging international mortgages and other property finance products. By working with banks such as DBS, OCBC and ANZ Bank international mortgages can be obtained to finance the commercial property in Asia.

ii)

Advising on the optimum accounting and tax strategies. Asia Property Consultants tax specialists use their knowledge of the tax requirements across the different markets in Asia to maximize the return for the client's commercial property market investment.

iii)

Appointing and supervising a local lawyer to manage the legal matters associated with the commercial property market in Asia, whether this be for commercial property in Singapore, Hong Kong, Australia, Indonesia, Thailand, Philippines, Vietnam or other markets in Asia.

iv)

Providing property management for our clients' commercial property. Asia Property Consultants will source and supervise reliable agents for activities such as a) finding tenants b) conducting property valuations c) property maintenance and refurbishments d) problem solving e) organizing appropriate property insurance and f) security.

For more information on the commercial property market in Asia, call our Singapore office at (+65) 67350120 or contact us at email@healyconsultants.com

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