bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Kenneth Ko

Overseas investors are showing more interest in Hong Kong and Asian property markets where asset values have experienced large adjustments since late last year, according to United States-based Greenwich Group International (GGI).

 David Doupe, president of the privately held property marketing and investment banking firm, said the correction in the region had resulted in more reasonable price levels.

 Asian markets, with the exception of Hong Kong and Singapore, had been closed to foreign investors in the past but they were expected to become more open and transparent as a result of their on-going financial reforms, he said.

 There was an exceptional increase of interest in the region by institutional investors in the US, Mr Doupe said.

 Regarding the Hong Kong market, Peter Brooks, managing director of Greenwich Group International (Asia), said the SAR Government's recent economic and property rescue package was a great confidence booster.

 He said it was necessary to take action and the measures would not represent too much government intervention.

 The land-sales freeze would result in a tight housing supply in 2000 and 2001 and if projected Government figures were correct, demand would continue to rise, he said.

 Mr Brooks said history would repeat itself in Hong Kong with property prices recovering after a large correction.

 Mr Doupe said US investors interested in Hong Kong's property market were not concerned about the currency factor.

 He said the peg would stand, adding that dropping the link would have too many ramifications.

 GGI recently helped foster the setting up of an investment venture between New York-based Orient Realty and the family of Yeh V-Nee, deputy chairman of Hsin Chong Construction Group.

 The venture, with committed equity of more than US$200 million, has already started investing in securities in Hong Kong's property sector.

 Mr Brooks said GGI was working on similar initiatives in Asia through matching local and global institutional capital.

 The group has carried out research on opportunities in seven countries - Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea and Thailand.

 Mr Doupe said it would help arrange funds specialised in sectors such as housing and hotels as well as specific country funds.

 He also said the fluctuating currencies of Asian countries would not dampen investor interest, saying once their economies recovered, their currencies would strengthen.

 Mr Brooks said the Asian crisis had sped up the transition of a new phase of property investment in the region. Its economic changes and financial reforms would give rise to more demand for capital, especially in property, he said.

 Mr Doupe said it was too early to make physical investments as further downside was seen in the Asian markets.

 The level of transactions must rise before these markets could stage a recovery, he said.



Foreign investors eye solid buys amid sharp sector correction