With Citadines Kuching Uplands and other properties due to open in Malaysia, Ascott’s operating apartments in thecountry will more than double from the current 455 units to a total of 1,168 units across nine properties by 2013. The company has recently clinched a management contract for its second Ascott branded serviced residence in Kuala Lumpur, while its third Somerset property in Malaysia will open next year.

Citadines caters to savvy, independent travellers who want high quality accommodation in a good location and the flexibility to choose the services they require. Ascott introduced the renowned European hospitality brand to Asia Pacific in 2006 with the opening of Citadines Shanghai Jinqiao. Since then, Ascott has opened 10 more Citadines in the region as they have proven to be popular.

Mr Alfred Ong, Managing Director for Southeast Asia and Australia, said: “We see strong growth potential in Malaysia. The country’s economic growth is expected to increase from 3.5% in 2010 to 5.3% in 2014. Foreign Direct Investment is also expected to grow from US$5.8 billion in 2010 to US$8.8 billion in 2014. We currently have Ascott and Somerset properties in Malaysia and we see tremendous potential in bringing the vibrant Citadines concept to the country. The presence of our three brands – Ascott, Somerset and Citadines – will enable us to cater to a wider range of customers. We intend to grow our Citadines brand in Malaysia and we are looking for opportunities to bring it to Kuala Lumpur. We will also look at other potential areas for growth such as Penang, Petaling Jaya and the Iskandar region.”

Citadines Kuching Uplands is scheduled for completion by the first half of 2012. It has a prime location in the Jalan Simpang Tiga area which is set to be a hub for education and local federal government administration offices. Jalan Simpang Tiga is also a fast developing district with a wealth of commercial and retail operations as well as medical facilities. The property is a 10-minute drive from the Samajaya Free Industrial Zone with many multinational and local companies. One of the largest shopping malls in East Malaysia, The Spring Shopping Centre, is just across the road from the serviced residence and the Borneo Convention Centre is also in the vicinity.

With Citadines Kuching Uplands, Ascott will be able to tap on the city’s burgeoning Meetings, Incentives, Conventions and Exhibitions (MICE) industry, project groups from the nearby companies and government offices as well as student groups and visiting professors from the universities located around the property.

Citadines Kuching Uplands will offer 215 stylish apartment units, ranging from studios to one- and two-bedroom units. Its facilities include a restaurant, sauna, swimming pool and gymnasium. The serviced residence is part of a mixed development project which will be developed and owned by Kenbest Sdn Bhd, a leading property developer experienced in retail and residential real estate development in East Malaysia. The building will also feature 200,000 square feet of retail area, the perfect complement to the savvy, independent and vibrant demographic of Citadines’ customers.

Besides Citadines Kuching Uplands, Ascott manages Somerset Gateway in Kuching and seven other properties in Kuala Lumpur – Ascott Kuala Lumpur, Ascott Sentral Kuala Lumpur (opening in 2013), Somerset Seri Bukit Ceylon, Somerset Ampang (opening in 2010) and three properties for corporate leasing.

In Asia Pacific, Ascott’s Citadines branded properties can be found in Singapore, Bangkok, Tokyo, Hong Kong, Shanghai, Suzhou and Xi’an. Eleven more will open in Jakarta, Kuching, Wuhan, Xi’an, Kyoto, Melbourne, Ahmedabad, Chennai and Hyderabad by 2012. In Central Asia, Ascott’s first Citadines property is scheduled for opening in Kazakhstan in 2011. In Europe, Ascott has 42 operating Citadines.

Quest is the biggest player in the Australasian serviced apartment industry, with properties in Australia, New Zealand and Fiji. The company does not have properties in Asia, but is known and respected in the region.

While there are a number of companies offering serviced apartments in the Asian region, none operate on a franchised system.

“It’s an opportunity for Quest to look at Asia. We believe that the franchise model would be quite successful throughout Asia,” Mr Constantinou said.

With the rise of wealth in many Asian countries, Mr Constantinou said there were a growing number of people who wanted to go into the serviced apartment business for themselves.

“There has been an emergence of financially capable people who are risk averse but want to get into business and a franchise would be a great opportunity for them,” he said. “The benefits of franchising are that the person who owns the business runs the business and there is certainty of income for the developer. Developers want the surety of income over extended periods of time.”

Mr Constantinou said the serviced apartment industry was set for growth in the Asian market, with customers already identifying the benefits of accommodation catering to longer-stay travellers and the business travel market.

“If you’re in Singapore for business for an extended period of time, you’d probably prefer to stay in an apartment – as long as you have a place to work, you don’t need a palace,” he said.

“I would love to say it was a very complicated Harvard Business School idea, but it wasn’t,” divulges Young.

Today, the feisty Young manages a total of 436 apartments across Hong Kong and six buildings in China. Next year, she is venturing out to open locations in Bangalore and Bangkok. It’s no surprise that RBS Coutts and Financial Times picked her for their ‘Entrepreneur of the Year’ at the Women in Asia Awards.

CNNGo interviews Young about the airplane romance that brought her to Hong Kong, Thai karaoke and being a ‘yat guek tek’ — a one (wo)man band.

CNNGo: When it comes to business in Hong Kong, is it still a man’s world? Is there a glass ceiling?
Young:
I do acknowledge that there is a male-female difference. But do I see it as a hindrance? Not at all. I think the prejudices are a frame of mind. If you don’t see it then I don’t think it has to be there. I don’t have any sisters, and I went to my brother’s public school. There were wonderful odds like 25 girls to 450 boys. I also had an overgrown boy scout type of a father, who always took us for adventure holidays so I’m very comfortable with boys. I’d say it is more of an advantage being a woman. You stick out and everyone remembers you. You go to conferences and there are not many female “gwais.” Normally they are all Asian males wearing red ties.

CNNGo: Do you speak Chinese?
I’d say it is more of an advantage being a woman. You stick out and everyone remembers you. You go to conferences and normally they are all Asian males wearing red ties.
— Elaine Young, founder, Shama Serviced Apartments
Elaine Young:
I am totally appalling! I have contractor Cantonese so I am very good on building sites. I never thought I would stay in Hong Kong. I was just passing through the city for five days with a girlfriend as you do when you are twenty nothing. I fell wildly in love on the airplane from Hong Kong to Australia and got instantly engaged. I came back hoping I’d recognize him at the airport. Soon I realized he wasn’t the major love of my life, but the city was. By then I had my own business, played league hockey, netball and squash, and the social scene was excellent. We were still pals but not right to get married. I was too young. Back to the Cantonese, you correct it with the next generation. My children read, write and speak Mandarin. I made sure I had a tutor for them from the age of two.

CNNGo: What makes a hotel room or serviced apartment feel like a home for you?
Young:
I read a survey years ago and I never forgot it. It said that the most important feature of a hotel room for 80 percent of the people was a quality night’s sleep. I totally believe in that. I was just in Kuala Lumpur, at a gorgeous hotel, cool looking staff, but the walls must have been paper-thin. They had some turkey doing maintenance on my floor at three in the morning. It was ridiculous. I had to wake up in three and a half hours time for a major presentation. I won’t go back there. At the end of the day, you’ve got to get your basics right. If your basics aren’t right then everything else pales in significance. So for us, we over spec on our beds but I think it’s a necessary luxury.

CNNGo: What is your favorite feature of a Shama apartment aside from the beds of course?
shama
Shama Causeway Bay
Young:
I love the Shama in Causeway Bay. It was designed by Dillon Garris who use to be Christian Liaigre’s head designer. All the rugs are hand knotted in Nepal. I sourced the leather in Spain and we dyed it in seven different colors. The silk we sourced in Bangkok. We went on scooters to god knows where and watched them weaving the most divine four- and six-ply silk. We ordered 440 pots from another place way out in Thailand. We had to sing karaoke in Thai and even sing Elvis in Thai there. My god, there was a lot of passion that went into putting that together. I used to source and I love doing that. But my focus now is business development so I have to leave the cushion covers for someone else.

CNNGo: Best hotel/serviced apartment experience?
Young:
Looking at the major serviced apartment groups, honestly I’d say what they lack is passion. One of the memorable times I recall was our honeymoon in the Okavango Delta on a horseback safari. It was the middle of nowhere and these guys boiled your water. So you could have a hot shower in the middle of the wild African planes. That, to me, is dream service. Once, hiking with my parents in the Himalayas, these guys would hike up in advance and every afternoon they would produce fruitcake. You’d think, how is this happening? It’s things like that when you are in a difficult environment and they just give you a delightful thing. In any normal hotel you take it for granted but when you are in those environments it’s a huge luxury.

CNNGo: Any advice you have for young entrepreneurs?
Young:
I think partnerships are absolutely key. Whether it’s ownership of your company or who you are working with, I think it is so important. Everything is always going to be great when the market is wonderful and you are making money. You gloss over any difficulties and little bumps you may have. But when things are difficult that is when it is so important that you have someone with whom you can mutually lean on and respect to work a problem through together. Alignment of interests, that is essential.

The beauty about being young is that you can afford to take risks. The biggest and best lessons you learn in life are always the hardest ones so I always say go for it. Listen to people, talk to as many people as you can but at the end of the day follow your heart and don’t be put off because you are young, embrace that.

For more details about Shama, visit their website www.shama.com

Ascott Limited, a major operator of upscale apartment complexes in Beijing, opened its fourth serviced residential development in the capital city Wednesday, but analysts are lukewarm on the market’s prospects.

This is the first time that Ascott has cooperated with developer Raffles City, which comprises a retail mall, an office tower and a serviced residence building. Raffles City is owned by CapitaLand, the Singapore-based parent company of Ascott.

“Mixed developments such as Raffles City is another platform for Ascott to grow rapidly, and we can service our customers better via our strong network in China,” said Lee Chee Koon, managing director of Ascott North Asia, Wednesday.

But analysts say the serviced apartment market as a whole does not look good this quarter, despite a slight recovery seen recently.

“The vacancy rate of serviced apartments in Beijing will be 20 percent by the end of this year because of the increase of supply and the demand drop caused by the winter off season,” Zhang Hong, head of Corporate Residential Service, Beijing of Jones Lang LaSalle, a financial and professional services company specializing in real estate, said at a press release October. Demand increased slightly in the third quarter, however, as some foreign companies sent more employees to Beijing, according to the report by Jones Lang LaSalle.

But the price of serviced apartments in the same period in Beijing declined 2.2 percent over the previous quarter, falling to 172 yuan ($25.19) per square meter per month, the report said.

The recent fall in rent prices and the increase in assets sales prices has made investing in apartments a little bit riskier, Tan Xiaomei, head of Research Beijing of Jones Lang LaSalle, said Wednesday. Tan added that Ascott’s capital strength and managing experience could deal with that problem.

Cai Dingzhao, regional general manager, North China of the Ascott Group, brushed off the pessimism, saying they were confident in Bejing’s potential and will be able to carve out their own market share.

“The demand for serviced apartments began to increase as the economy started recovering from the financial crisis,” Cai said Wednesday.

“The return period on investments in serviced apartments is at least two years, so consequently, commercial opportunities and capital strength are really important,” Cai said.

And analysts confirmed the need for capital reserves if a domestic property developer wants to enter the market.

“In China, the owners and operators of the serviced apartments are always foreign companies or companies from Hong Kong or Taiwan that have loads of capital and experience,” Wang Chen, head of Consulting Department of North China of DTZ, a global real estate adviser headquartered in London, said Wednesday.

“The domestic real estate developers still have not entered into this market because they lack experience and have a different target clientèle,” Tan Xiaomei of Jones Lang LaSalle said Wednesday.

With visitation to Macau continuing to soar, driven by China’s booming economy, Macau Ignite Media Group is perfectly positioned to capitalize on the rapid increase in consumer spending across every segment of Macau’s market. The Group’s media assets reach every visitor to Macau, whether they arrive by air, land, or sea. Almost 23 million people visited Macau last year, and by 2012 over 30 million visitors are expected to descend on Asia’s newest entertainment destination. For businesses eager to engage these high spenders, whether in Chinese or English, print or digital, Macau Ignite Media Group can provide the right medium for the job.

Given the recent IPOs of Sands China and Wynn Macau, the future for Macau looks brighter than ever, according to Anthony Lawrance, Chief Executive Officer of Destination Macau. “We believe that Macau’s economy is in the early stages of a transformation. While previously it was almost completely dependent on gaming, it is now being diversified through major investments by some of the world’s leading hospitality, entertainment, and leisure companies,” Lawrance said. “This is still the world’s hottest gaming destination – revenues are back at record highs this quarter – but non-gaming is growing at a record pace, too.”

Christina Siaw, Chief Executive Officer of Macau.com, said it is clear that the visitor demographics for Macau are rapidly evolving. “Higher-spending consumers are being drawn in by integrated resorts that are equipped with extensive non-gaming facilities, including convention centers, shopping malls, serviced apartments, theaters and theme parks. This new variety of entertainment in Macau is increasing the ratio of overnight visitors and lengthening their stay,” Siaw said. Oscar Sousa Marques, Chief Executive Officer of Directel, added, “All of this points to rapid growth in per-capita spending, and we are ideally positioned to help brands capitalize on that growth.”

While Macau’s visitors come primarily to spend on gaming – Macau now generates more gaming revenue than Las Vegas and Atlantic City combined – they are showing an increasing propensity to spend on dining, shopping and shows. This is showing up in official figures: third-quarter retail sales this year leapt by 17 percent, driven by an astonishing 55 percent year-on-year growth in the sales of watches and jewelry. Through Macau Ignite Media Group assets, these new affluent consumers are able to book hotels, get the low-down on the best places to wine and dine, buy show tickets, and shop for luxury goods.

Online, Macau.com and Aomen.TV offer visitors everything they need to know about Macau, so they can easily plan and book their trips in advance. When it comes to show ticketing, Macau.com is a one-stop shop, available online at http://www.macau.com and offline at hotel concierge desks.

In print, the city’s leading magazines, Destination Macau and The Guide, reach visitors in hotel rooms, on ferries and airlines, and at border points, while Directel has cornered the market for maps, guidebooks and Yellow Pages. Out of home, EC-AD manages the city’s major billboards and light boxes, taxis and buses. Locally, Qoos.com, vProperty.com and macauHR.com dominate the social media, property search and job classifieds markets, respectively.

“This is a very exciting time for Macau Ignite Media Group as we are taking initiatives that embrace the future of Macau,” said Carrie Law, Director of Strategy at Macau Ignite Media Group. “To facilitate the next stage of our growth, we will aggressively expand our portfolio of media assets in outdoor, online, print, and entertainment.”

Kevin McKenzie, Director of Business Development at Macau Ignite Media Group, said the group’s positioning is in line with the government’s strategy to promote Macau as a well-rounded holiday destination. “We enable brands to reach the growing percentage of visitors interested in more than just gambling,” he said. “The Group is partnering closely with the integrated resorts to accelerate the growth of Macau. Making Macau Happen – that’s what we’re about,” said McKenzie.

For more information, please contact:

Macau Ignite Media Group
Stella Yeh
Tel:     +853-2872-2376
Email:   info@macauignite.com
Website: http://www.macauignite.com

Socrates Alvaro, General Manager, Nuran Serviced Apartments, told Emirates Business: “The big opportunity lies in the GCC market, especially in Saudi Arabia, Qatar and Kuwait.”Nuran, which was part of the Dubai Tourism and Commerce Marketing (DTCM)Dubai Tourism and Commerce Marketing (DTCM)
Department of Tourism and Commerce Marketing
DTCM
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» Research
road show, received a positive response from the Qatar and Saudi markets, he added.

Emaar Hospitality GroupEmaar Hospitality GroupLoading… operates two properties in Dubai – Nuran Marina Serviced Residences at Dubai Marina and the Nuran Greens Serviced Residences. A third and flagship Nuran serviced residence is being planned in Downtown Burj Dubai.

According to statistics from the DTCMDTCMLoading…, at the last count, there were 165 functioning hotel apartments in Dubai offering more than 14,000 rooms.

Nuran would be catering to the demand from family groups from the GCC. It has also come out with special packages for this region.

Alvaro said: “A big difference this summer, that is, July and August, we have been focusing on the leisure market, simply because demand from the corporate segment has decreased”.

He said last year the corporate segment was 73 per cent of the market and there was constant demand.

This year, because of the economic turmoil, a lot of companies have reduced their travel, which has impacted on the occupancies in Dubai, said Alvaro. Last year, leisure contributed to only three to four per cent of occupancies. “This year, we are looking at a shift in the market segment. Leisure now contributes to almost 10 per cent of occupancies,” he said.

Regarding Nuran’s expansion plans, Alvaro said the company planned to get into management contracts with firms (managing serviced apartment).

He said the development team was actively looking at this prospect, but it would depend on the property and the location, which has to be similar to Nuran’s existing properties.

Serviced apartments in Dubai, like the hotels, are going through challenging times. Alvaro said: “The demand is still there, but it is a lot more competitive.”

Nuran has an occupancy rate of about 70 per cent at both its properties. ” We are fortunate that we have a good corporate base and we have a lot of medium to long staying guests,” he said.

One of the key differences from the first quarter to this quarter is that the rates are getting more competitive and that the clients are getting more rate conscious.

Another trend that is evident, Alvaro said, is this time around there are shorter leads. People are booking rooms at the last minute and closer to the time of travel.

The company plans to utilise Dubai’s location as a hub and work with airlines on stopover programmes.

A quarterly report recently released by the real estate services provider CBRE Viet Nam showed that average rents at grade A serviced apartments in HCM City dropped 11 per cent quarter-on-quarter, to US$32.35 per square metre per month. Grade B and grade C fell respectively by 4 and 5 per cent. Meanwhile vacancies increased across all grades, with grade A posting the highest rate of 14 per cent.

“As rents are already significantly discounted, serviced apartments are competing based on age of property, facilities and decor,” noted Rudolf Hever, CBRE Viet Nam senior manager for research and consultancy services.

Grade A buildings are also suffering as tenants are switching to cheaper serviced apartments to save costs, while tenants of grade B and C relocate to non-serviced ones for the same purpose.

While demand is declining, supply has tended to rise. 560 units of the Intercontinental Serviced Residences (grade A) in the Kumho Asiana Plaza, Dist. 1 and the Crescent (grade B) in Phu My Hung area will enter the market later this year. That is not to mention buy-to-let apartments around the city, which will create more competition for serviced apartments.

The residential market has had fresh additions of over 1,100 apartments from six projects. Sales have been slow but steady, mainly for the average ones.

For the retail market, rents remain stable at around $110 per square metre in the city’s downtown area. Several projects became operational in the second quarter, including Sai Gon Paragon in Dist. 7, Master Zone in Dist. 1, and the Kumho Asiana Plaza with almost 7,000sq.m expected to enter the market in September. Rates however are expected to soften this quarter for outlying retail locations though they’ve already come down 10 per cent quarter-on-quarter.

Grade A office space has increased by more than 34,000sq.m but new contracts have covered just 3,700 sq.m. An additional 195,000sq.m will join the market in 12 to 18 months, offering a much wider choice for tenants.

Looming bad debt problem

Non-performing loans (NPL) are posing a big challenge to commercial banks, especially in the context of the ongoing impacts of the global economic crisis. According to Alexandre Legendre, partner at the Ha Noi-headquartered legal firm Leadco, although the NPL ratio is officially listed at 5 per cent, the real figure may be higher.

At a seminar last week he cited a 2008 survey saying that around 20 per cent of small and medium-sized enterprises had been seriously affected by the crisis.

Philip Paterson, head of corporate and institutional banking for ANZ Viet Nam, said banks needed to act collectively in the case of a customer’s insolvency rather than individually as most of them have accounts with more than one bank.

“It you treat other banks unfairly on one deal, they are likely to do the same to you on the next,” he said, adding that if all banks tried to exit at the same time, the debtor might go bankrupt and no bank would get repaid.

He also advised the lenders to join in helping the customer out of a serious situation, which requires them to make compromises to reduce the chance of a debtor company collapsing.

Local bankers however admitted that such collective practice was not yet popular in Viet Nam, except in syndicated loans.

Lenders could hire an independent advisor to help their customer avoid bankruptcy, advised Mathew Lourey of the accounting and consultancy firm Grant Thornton Viet Nam.

The advisor will, according to him, assess the viability of the corporate debtor and work out a restructuring plan.

Common causes of NPLs include customer being over-ambitious and going for “the big project”, often in real estate and production sectors, or in unfamiliar industries, and money not being used for the intended purpose, for example trade finance going to securities investments. Poor documentation can also lead to NPLs, as can a shortage of experienced and potential executives in companies, according to the experts.

Funds eye Viet Nam

The global economic crisis has not dulled the interest of investment fund management companies in the Vietnamese market.

Koichi Hori, chairman of Japanese company Dream Incubator, said his company was co-operating with the Cayman Islands registered ORIX Corporation to launch a new fund for Viet Nam early next month.

The new fund, named DI Investment Partners Ltd, will have capital of US$50 million, which is expected to double later this year. The fund will target sustainable investment in Vietnamese companies with high prospects for growth and initially eight to ten companies will be selected for investments.

Joint ventures between Japan and Viet Nam will also be targeted.

Outlining the qualities that the fund is looking for, Hori said: they should be focused on domestic consumption and exports; be among the leaders in their industries and show high financial transparency; be working towards being globally competitive; and have a visionary, hard working and passionate management board.

The fund will have a term of eight years, and it will invest for about three to four years in each of the companies with the expected returns on investment of about 10-20 per cent.

Meanwhile, a local fund management company, Anpha Capital, announced last week it would begin raising capital early September from both Vietnamese and international sources for an investment fund.

This fund, which will cover listed equities, private equities and real estate assets, is expected to be launched early next year, according to Anpha Capital chairman Bui Cong Giang.

Giang, while not disclosing the target scale of the new fund, was confident about its success.

His company had raised two funds in 2007, which are listed on the Frankfurt Stock Exchange, but a management buy-out of the fund was completed last year.

Particularly, Anpha Capital will integrate environmental, social, and corporate governance (ESG) issues into investment analysis, decision-making processes, and ownership policies.

 The accommodations are housed in a converted period building in a location where the availability of serviced apartments is limited.“The addition of this property allows us to present a unique accommodation alternative in an area of South Kensington that otherwise offers smaller and less cost effective housing choices,” said Oakwood’s Senior Vice President and General Manager Gavan James. “The property offers a furnished living solution in an area with few serviced apartment options.”

Kensington is one of the most sought-after residential locations with easy access to Heathrow and London’s financial district.

Also convenient to some of London’s more popular attractions, the building is opposite the Natural History and Victoria and Albert Museums and a short stroll to Hyde Park and Kensington Place. The world renowned shopping and dining areas of Harrods, Knightsbridge, and the bustling Kings Road and Chelsea are also all very close by.

Oakwood’s latest UK property offers spacious, high-ceiling apartments with internet and cable points throughout, providing comfortable living and working environments for guests.

In addition, each Oakwood Cromwell Road apartment features:

- A 32-inch flat screen TV with Freeview in the lounge and bedrooms

- Modern kitchen with granite countertops, dishwasher, oven and espresso machine

- In-suite washer and dryer

- Non-allergenic duvets and pillows with five-foot Divan beds in all rooms

- Wireless or broadband access

- Radio alarm clock with iPod docking

Whether visiting London for work or pleasure, Oakwood Cromwell Road provides a consistent gold standard level of service and value.

See other recent news regarding: Airlines, Aviation, Flights, First Class, Business Class, GDS, Miles, Hotels, Promotions, Spas, New Hotels, Visitor Arrivals, Cruises, Free Deals, Oakwood, London, Apartments

The sales sector across the Grade A office, luxury residential, industrial and retail markets has been stimulated by the inflow of ample liquidity into Hong Kong, reflected by the significant rise in the sales activity.  However, the leasing sector in the four markets remained on the downside since occupational demand was weak in the midst of the ongoing global and Hong Kong economic slowdown.  These findings were analysed in the Hong Kong Knowledge Report – July 2009, the quarterly report covering Grade A office, luxury residential, industrial and retail markets in Hong Kong.Grade A Office
With the high level of liquidity in 2Q 2009, investment sentiment was buoyant in the property market and a number of private investors were bold in acquiring office properties.  Since there was limited whole-block stock available for sale, sales activity focused on the strata-title office units in 2Q 2009.  This has driven up prices. For example, average asking prices for strata-title office buildings in Admiralty rose to HK$10,000-HK$13,000 or above per sq ft in 2Q 2009, compared to the HK$8,000-HK$9,000 per sq ft in the previous quarter.

However, office rentals were yet to see the positive spillover from the resilient sales market, with the average Grade A office rentals falling further by 12.1% quarter-on-quarter (QoQ) to HK$41.79 per sq ft per month as at the end of May 2009.

The average vacancy rate across the various business districts increased slightly from 7.43% in February to 7.86% in 2Q 2009.

“Owing to the sustained trend of corporate relocations to the less expensive offices, Kowloon East was one of the very few sub-markets to register a fall in vacancy rates during 2Q 2009,” said Simon Lo, Director of Research & Advisory.  One of the benchmark examples is the relocation of the office of Manulife from Causeway Bay to Kwun Tong, which will take up 247,000 sq ft in Kwun Tong 223.  Meanwhile, Central and Admiralty also registered a marginal drop of vacancy rate from 5.07% in 1Q2009 to 4.90% in 2Q2009.

Looking forward, new demand will remain weak while existing tenants are expected to look at every possible option to reduce costs.  In the next twelve months, Grade A office rentals are projected to fall 15% unless the worldwide economic recovery is quicker than expected.

Luxury Residential
In 2Q 2009, there was a distinct growth in sales volume and prices in the luxury residential market.  The number of sales transactions in The Peak, Mid-levels and South Side increased over 100% during the period, while the average luxury residential price surged by 21.9% QoQ to HK$12,955 per sq ft as of May 2009.  Particularly, the average luxury residential price growth in South Side outperformed those in The Peak and Mid-levels, which registered a significant increase of 33.5% QoQ to HK$14,413 per sq ft in May 2009.

“In addition to the inflow of liquidity, the strong buying interest could be attributed to the growing optimism in the marketplace, driven partially by the significant rebound in stock market prices,” said Simon.  “Looking forward, luxury residential prices are expected to see stable growth to edge up 5% or above in the next twelve months.”

In contrast, luxury residential rentals fell by 4.3% QoQ and the average serviced apartment rentals dropped by 7.8% QoQ as of May 2009.  This could be explained by the uninspiring hiring expectations by multinational corporations which weakened the occupational demand for luxury units and serviced apartments.  In the next twelve month, luxury residential rentals are expected to see a downward adjustment of 3%.

Industrial
The number of sales transactions of industrial property rose 129% QoQ from 393 in March 2009, the lowest level since 1999, to 900 in May 2009.  Of the industrial districts, Kwai Chung/Tsuen Wan and Kowloon East saw the most active sales activity during the period.

However, the leasing market remained subdued in terms of demand and rental.  This could be attributed to the ongoing global recession and the plunge in intra-regional trade.   The total value of re-exports fell 17.1% year-on-year (YoY) to HK$565 billion during the three-month period ended in May 2009.   The gloomy external trade environment challenges the business outlook for trading and logistics companies, which are the major occupiers of Hong Kong’s industrial properties.

Although individual warehouse users have taken advantage of the prevailing market downturn to upgrade their premises to prime quality warehouse in Kwai Chung with rentals staying similar to what they paid in other districts, most occupiers remained cautious about their rental expenses.  “New leasing demand was rare, while existing tenants tried to cut down their rental costs by downsizing or relocating to less expensive premises,” mentioned Simon.

Although the pace of downward adjustment of Hong Kong’s external trade is expected to taper off, industrial property occupants will remain conservative in coping with the uncertainties in the external environment.  Industrial rentals are predicted to fall by 5% – 15% over the next twelve months.

Retail
In 2Q 2009, locals’ spending sentiment was negatively affected by the contracting economy and uncertain job market.  Meanwhile, visitor arrivals in Hong Kong dropped 3.5% YoY during the three-month period ended in May 2009.  These have dampened Hong Kong’s retail sales, which recorded a single-digit fall in both April and May 2009 compared to the same period last year.

“Seeing the challenges in Hong Kong’s retail market, some local and international retailers became more cautious and chose to put their expansion plans on hold,” said Simon.  “Meanwhile, the retail property market was increasingly segmented.  Although individual retailers are willing to pay premium rentals for prime units in traditional shopping districts, there were still vacant shops near those prime units, even in the same street segment.”

Average retail rentals in the four traditional shopping districts – Central, Causeway Bay, Mong Kok and Tsim Sha Tsui – registered a decrease of 4.7% QoQ in 2Q 2009.  Of the four districts, Central saw the smallest decline of 3.6% QoQ during the same period.

Looking forward, Hong Kong’s retail sales still face a number of challenges, such as the slowdown in the number of inbound visitors and cautious spending by local households.  As a result, retail rentals are projected to drop further by 12% in the next twelve months.

Founded in 1992 by Amanresorts creator Adrian Zecha and Hans Jenni, the current GHM portfolio of 14 properties in nine countries will expand to 23, with new openings in the pipeline in Mexico, Oman, Greece, Bulgaria, Switzerland, Dubai, China and Bali over the next three years.“We choose only to get involved with properties where the owners truly share our vision and are willing to make the necessary commitment to work with us and create a stunning property that is the best of its kind in the destination it serves,” said GHM’s Director and President, Hans Jenni.

Each GHM property has its own identity and unique elements, though all share the company’s core values of excellence in design, a strong ’sense of place’ evident in the design details, and high standards of personalized service which create memorable lifestyle experiences.

Breathtaking contemporary design has always been a strong element of each GHM hotel or resort, and every angle, every view, every nuance of lighting and every ceramic urn or bronze candle holder that you see, has been carefully sourced and positioned to be harmonious to the eye.

New projects from GHM across the globe include the following hotels and resorts.

The Yamu, Phuket, Thailand

The Yamu, a Philippe Starck design, is a 32-acre resort and villa development located on a private peninsula on Phuket’s scenic east coast, approximately 25 minutes from Phuket International Airport. At 40 metres above sea level, The Yamu captures both sunrise and sunset vistas whilst offering sweeping 360 degree views of the spectacular limestone formations of Phang Nga Bay and the surrounding islands and headlands of Phuket Island.

The Nizuc, Riviera Maya, Mexico

Located on Mexico’s Riviera Maya, at the tip of the Yucatan Peninsula, The Nizuc was once Mexico’s Presidential retreat and the government’s favoured location when entertaining foreign dignitaries. With 28 private Caribbean beachfront acres, The Nizuc residences and resort will offer a retreat of unrivalled luxury inspired by the Mayan culture and infused with elements of Asia, and created by some of the world’s premier artisans synonymous with the GHM style.

The Malkai, Barka, Oman

Located about 50 kilometres from Muscat in Oman’s Al Batinah region close to the town of Barka, The Malkai, Barka, Oman will offer 40 luxurious suites each with their own private swimming pool. The resort is just three kilometres from the Indian Ocean and will have its own private beach club.

A haven in which to relax and indulge, guests will be able to unwind or play a round of golf at the first course in Oman designed by renowned golf course architects Gary Player Design – or enjoy an adrenalin fuelled 4×4 ride across the dunes.

The Artai, Dubai

Designed by legendary architects Denniston, who are also behind several of the GHM and Aman properties, The Artai will be located on Sheikh Zayed Road next to the Emirates Towers, one of the most prominent addresses in Dubai.

Adjoining the Dubai World Trade Centre, another important landmark, The Artai Hotel Tower will comprise 150 one and two-bedroom hotel apartments, while The Artai Apartment Tower will feature 250 luxury one and two-bedroom serviced apartments and four restaurants, plus spa and health club.

The Chedi, Kilada Hills, Greece

The Chedi, Kilada Hills resort will comprise a GHM-operated Chedi luxury hotel, 45 Chedi signature villas and more than 250 residential units as well as a beach club, all set within an 18-hole Jack Nicklaus signature golf course. Other resort facilities will include an equestrian centre, winery, olive oil processing facility and a small retail complex. When it opens, Kilada Hills will be the first residential golf resort to come to market in Greece.

The Chedi, Thracian Cliffs, Cape Kaliakra, Bulgaria

The first truly luxury resort to open in Bulgaria, The Chedi at Thracian Cliffs will set new standards of service and design in this fast emerging leisure travel destination. Comprising 60 suites and with a full range of guest services and amenities, the resort will feature a contemporary Asian design with elements of the ancient Thracian culture creating a distinctive sense of place in the GHM style.

The Chedi, Andermatt, Switzerland

Set amid the picture postcard surroundings of the Swiss Alps, The Chedi Andermatt is conveniently located in this small skiing town at the crossroads of Switzerland. Also designed by Denniston, The Chedi Andermatt will comprise 131 hotel rooms, pied-a-terres and penthouses, as well as 94 private residences including apartments and lofts. Also planned are an aprés ski bar, restaurant, bar & lounge with wine and cigar rooms, boardroom, spa, gym and pool.

The Chedi, Taiping Lake, Anhui Province, China

Located near Mt. Huangshan in Anhui Province, The Chedi at Taiping Lake will offer 30 spacious villas and a further 90 rooms and suites, complemented by guest amenities which will include a traditional hot spring spa, health club, golf course and restaurants.

The Serai Club, Bali

Secluded in an exclusive estate in Jimbaran, Bali, The Serai Club combines the signature touch of several noted international designers including architect, Robert Nation, interior designer Jaya Ibrahim, landscape architect Karl Princic and lighting designer Nathan Thompson of TFB Australia.

Twenty three private villas featuring Balinese-inspired contemporary designs, will represent the pinnacle of tropical luxury, privacy and security. The Serai Club will also offer personalized house services, dining venues, spa services and easy proximity to cultural attractions.