Dubai recorded a 4 per cent rise in the period between December last year and March this year, according to Knight Frank Prime Global Cities Index.

Dubai recorded a 4 per cent rise in the period between December last year and March this year, according to Knight Frank Prime Global Cities Index. This placed Dubai ahead of London at 2.7 per cent and Jakarta at 3.3 per cent.

Knight Frank summarised that Dubai’s residential property prices rose 2.7 per cent since last September and 0.3 per cent over the past 12 months.

Dubai villa sales increased 3 per cent in the first quarter of this year, compared to a peak in the third quarter of 2008 – but prices still remain 25 per cent lower, commented Jones Lang La Selle in its quarterly Dubai real estate market overview.

Dubai property prices rocketed after the city opened its real estate sector to foreign investors in 2002.

Emirates apartment sales also saw stability in the first quarter of this year. However, market prices remain low: down 34 per cent compared to the third quarter of 2008, according to Jones Lang LaSalle.

Real estate prices in Dubai rallied almost 80 per cent from the start of 2007 to mid-2008.

Home prices in Dubai suffered the biggest reversal seen in the Gulf property market as a result of the financial crisis; where prices declined by 60 per cent on average.

Annually, the index rose 1.4 per cent. Such figures offered optimism across the market, although the Eurozone’s debt debacle remained at the forefront of the global economic agenda.  The crucial elections of Russia, France and Greece also add to instability across the market. Moreover, Asia’s highly-effective cooling measures show no signs of ease.

Amidst the uncertainty, some luxury buyers took to the observatory side-lines, said Knight Frank.

Over the year period, Nairobi was the strongest performing prime global city with an increase of 24.2 per cent. Jakarta, London, and Miami all reported double figure increases in property prices.

Nicholas Halt, Knight Frank’s Asia-Pacific research director summarised that the overall index is likely to remain subdued in 2012, fluctuating between marginal price falls and rises, according to Arabian Business.

He said: “It seems unlikely we are on the cusp of a new deflationary cycle in luxury global house prices.”

Vattanac Capital will contain approximately 11,500 square meters of premium retail space in the Podium to accommodate luxury international brands.

Vattanac Properties Ltd. has begun development for the 39-storey Vattanac Capital office tower in Phnom Penh, Cambodia due to the need for International standard Grade A office space.

Some of the key features of the development are the 31 lifts, clear floor to ceiling heights of up to 3.45 metres, column free office floor plates, raised floors, and an iconic design by TFP Farrells.

Due to the shortage of modern office space in Cambodia, many companies, including multinationals and the World Bank, have located to renovated villas.

Office tenants in cities such as Bangkok, Ho Chi Minh and Hanoi, have all migrated from villas to modern office developments.  CBRE predicts Phnom Penh will follow suit when Vattanac Capital is ready for occupation later this year.

Cambodia’s strong growth driven economy is a growing investment destination.  In Phnom Penh, current office stock is only 150,000 square metres.

“Vattanac Capital will be the finest development of its kind for many years to come and home to companies who are seeking to affirm a powerful presence in Cambodia and the region,” said Vattanac Sam Ang, executive director of Vattanac Properties Ltd. “It will not only permanently transform the skyline of Phnom Penh but will also be one of the key factors that will attract new investments into Cambodia. We are honoured to play a key role in raising the profile of Cambodia.”

Demand for Vattanac Capital will mainly come from multinational companies. The insurance industry is a big growth sector in Cambodia, along with transport, shipping, the financial sector, construction industry and diplomatic bodies.

There is increasing pressure on diplomatic missions to move out of Villas and into efficient and secure space. The rate of change from people moving out from non-purpose built office space is gaining momentum and tenants who plan to upgrade are looking for high-quality development.

“At present, whilst the development is still under construction, we see a very significant reaction when tenants view space,” said said David George, CBRE Cambodia’s country manager. “Even at this early stage of marketing, it is clear the development is of substantially better quality that anything Phnom Penh tenants have ever seen.”

Vattanac Capital will also contain approximately 11,500 square meters of premium retail space in the Podium to accommodate luxury international brands and supporting services. Levels 25 to 33 will provide approximately 150 Serviced apartments and the property will be managed to International Standards.

Foreign investors are being prompted to look into the hot markets up Phuket and other islands.

According to Thai Home Construction Association, new-build property demand in Thailand is pushing up prices in the country, with growth particularly strong in the north, north-east, and south.

The Association noted prices in these areas have risen by between 15 and 20 per cent in the opening three months of 2012.

Property Showrooms reported that the surge is partially due to wealthier Bangkok residents looking to buy a second home outside of the capital, where growth in the first quarter of the year was marginal.

Potential buyers have had to make quick decisions in order to secure a purchase and the surge in demand has also resulted in a labour shortage, with president of the association Sitiporn Suwanasut noting this is a particular concern in the Bangkok area.

He also stated that many provincial workers who had relocated to the capital went home during the floods last year and have yet to return.

According to Property Showrooms, foreign investors keen to buy property in Thailand may want to look towards the south of the country and destinations such as Koh Samui and Phuket these are proving popular with tourists.

London's prices and applicant numbers increased despite the seven per cent stamp duty increase.

The Knight Frank Cities Index recorded its first quarterly fall since 2009, with the average value of prime property in the world’s key cities depreciating by 0.4 per cent in Q1 2012.  This is the property index’s first quarterly fall since the depths of the global recession.

According to the Dubai Chronicle the index’s negative quarterly growth is not surprising. Quarterly price growth has been below 2 per cent since Q1 2010 and it averaged only  0.6 per cent in 2011.

The Eurozone’s debt issue remained at the forefront of the global economic agenda, several critical elections were on the horizon, and Asia’s highly effective cooling measures showed no sign of being relaxed.

Four prime property markets achieved double-digit growth over a 12-month period despite the overall index’s sluggish performance. They were Nairobi, Jakarta, Miami, and London.

Singapore and London shrugged off the introduction of new stamp duties in the first quarter of 2012 and London increased both it’s prices and applicant numbers.

The new 10 per cent stamp duty for foreign property buyers dented demand in Singapore but not prices according to Nicholas Holt, Knight Frank’s Asia-Pacifi research director.

“Prices not only held up, but actually increased slightly at the very top end of the Singapore market in Q1 2012,” said Holt. “This was not only due to fairly resilient domestic demand, but also due to wealthy Chinese, Indonesian, and Indiana buyers who continued to buy in this segment of the market undeterred by the surtax.”

The overall index in expected to remain subdued in 2012, fluctuating between marginal price falls and rises.

In February the practice’s masterplan for a new 680 hectare waterfront community of up to 55,000 inhabitants on Yas Island, Abu Dhabi was approved by the Abu Dhabi Urban Planning Council.

The Abu Dhabi Urban Planning Council (UPC) has signed a Memorandum of Understanding (MoU) with Singapore’s Urban Redevelopment Authority (URA) to gain and share first-hand experience on urban planning strategies, methods and best practices.

The MoU formally sets out a framework for the exchange of information and experience between the UPC and URA and under the agreement both parties will collaborate to create benchmark urban planning policies and initiatives that are closely integrated with land use, infrastructure and transportation solutions.

“Abu Dhabi and Singapore are dynamic regional hubs that play an increasingly important role in the global economy,” said Ed Baker, Singapore-based Director of Masterplanning at global architecture, urbanism and design practice Broadway Malyan.

He continued to state that “Both continue to recognise the importance of good sustainable planning through ongoing investment in urban planning initiatives that set an example and lead the way for other global cities. The latest initiative is particularly marked at time when many countries are talking about austerity measures and cutting back on investment in the built environment.”

“With long-standing bases in both Abu Dhabi and Singapore, and an active partnering role in major strategic projects of the kind that are helping to deliver long-term visions such as Plan Abu Dhabi 2030, our world-class team of masterplanners and planners welcomes news of the MOU, supports its progressive agenda and looks forward to helping deliver on its aims.”

Investment in China plunged to US$949 million in the first quarter of 2012, according to a report by CB Richard Ellis.

Across Asia, investment has fallen by 42 per cent quarter on quarter. The total capital fell to US$11.6 billion during the January-March period.

Chinese mainland investment dramatically decreased by 70 per cent, revealed in the Asia-Pacific Capital Markets Marketview report, yesterday. Investment in China plunged to US$949 million in the first quarter, according to the report.

The report, carried out by CB Richard Ellis, the world’s largest commercial real estate services provider, correlated the decline with the New Year holidays and the high value of investment of the latter half of 2011; removing several assets from the market.

Greg Penn, executive director of CBRE Investment Properties in Asia said: “China’s property investment market was relatively quiet in the first quarter, in part due to the Chinese New Year holiday, with the exception of continued strong activities of occupier purchases by domestic companies and development acquisitions between developers.”

He concluded that Chinese developers continue to face liquidity problems, offering that: “this may offer opportunities for investors to provide capital and acquire asset portfolios,” according to English News.

Domestic capital value dominated the market at almost 86 per cent of the total value investment. Cross-border acquisitions descended 69 per cent on a quarterly basis to US$1.6 billion, according the CBRE data.

In the first quarter of 2012 Southeast Asia's luxury property market have proved a mixed-bag

Bangkok, Hong Kong, Kuala Lumpur and Jakarta’s market rose in the consecutive quarter of 2011-12, according to Jones Lang LaSalle’s recent Residential Index.

The strongest monitored property value, up 4.3 per cent in the first quarter of this year was Jakarta. They had a growth of around 16 per cent.

Capital values in Kuala Lumpur’s top end market were up by 6.9 per cent largely due to stock additions.

The first quarter increase is a continuation of a trend present in the Indonesian market over the last 18-24months, according to Todd Lauchlan, Country Head of Jones Lang LaSalle, Indonesia.

Of that market, he said: “prices have been consistently pushed through by developers on the strength of robust demand levels. Demand is being driven by significantly increased affordability, and with record low interest rates, high consumer confidence levels and strong income growth, we expect to continue to witness the rise of the Indonesian middle class.”

In Hong Kong, there were signs of stabilisation – after declining markets over the past six months; luxury residential prices were up 1.4 per cent, quarter on quarter. This growth is a result of low interest rates and more active mortgage lending by banks.

Growth in emerging Southeast Asian markets aided to offset depreciating value in Singapore and China.

Beijing, Shanghai, and Singapore presented declines in average high end residential prices in the first quarter of 2012, whilst Mumbai was stable.

After remaining in a stable position for six consecutive quarters Singapore’s prime market capital value declined by 2 per cent.

Beijing’s high end residential market fell by 2.3 per cent as gripping policies remains fixed. Shanghai’s market dropped by 1.2 per cent.

Offering future insight into the market, Dr Jane Murray, Head of Research, Asia Pacific, Jones Lang LaSalle said: “Prices in China are expected to decline further over the next 12months, as policy restrictions are likely to remain in place and developers are likely to introduce more price discounts.

“Prices in Hong Kong and Singapore are also expected to decline over 2012, as a result of projected rental correction, generally weaker investor sentiment as well as policy risks.

“The extent of price correction in Hong Kong will likely to be limited by the tight supply situation.

“Among the emerging Southeast Asian markets, the Jakarta sales market should see the strongest price growth on the back of a strong economy.”

Dr Murray concluded that prices in Bangkok and Kuala Lumpur are expected to remain stable.

Many times I have nervously walked into the offices of CEOs and major executives for first time meetings. Sometimes there is a dazzling expensive view from an office on a high floor, but I often find, for being so fancy, their offices are usually drab and predictable. I continue to be hugely underwhelmed.

Prestigious names, positions and reputations are compromised when one is seen hunched over a common desk and sitting in a plain office chair. That chair should be a power chair, yet it is usually black; sometimes brown. Almost always it is cheap leather or worse yet, vinyl on wheels.

Historically we could always see who was an important person because they actually had a chair when most folks sat on the ground. Often these seats were simple, but when they were the chairs of great rulers, they became thrones. The official seat of great power. Think back and imagine the infamous thrones of fierce rulers through the centuries.

While Europeans have focused on the literal chair and making it as grand as possible, Asians have focused on the presentation and incasing of the ruler rather than just the chair. Russians Ivan the Terrible’s Ivory Throne and Queen Christina’s Silver Throne are two of my favorites. What a contrast of character compared to the seat from which they chose to rule. Ivan is important for conquering Russia’s billion acres, unifying government and being the first crowned Czar of Russia, but he is more often known for his erratic nature and bad temper (which lead him to beat his heir to death).

He chose a white throne intricately carved from fragile ivory; something so impressive and unusual. Beastly yet delicate. Christina was stuck to the crown of Sweden at a young age. She was sophisticated and smart but a rebel. She refused to marry, plundered her lands to support her love of the arts and eventually eradicated the thrown and converted to Catholicism. She spent the second part of her life exiled in Rome protecting great artists. She is one of the few women buried in the Vatican. She sat upon a curvy and chic, subtly proportioned throne. It is refined, artistic and precious.

The Dragon Throne (China), Chrysanthemum Throne (Japan), Phoenix Throne (Korea) and Lion Throne of the Dalai Lama focus not so much on the seat as they do the scene around it. They all sit on high levels with many steps holding the ruler high above there audience. Literal “High Powers” Some with grand carved screens or walls behind them. Bright colors, murals and curtains all used in different ways to create an entire scene out of the room to empower the mighty ruler. Not such a bad way to show your nation’s strength.

In this age our greatest rulers are the competitive executives of big business. I say why not carry the competition to office decor. A powerful person with a powerful job in a powerful company should place themselves atop a powerful throne. Employees and peers should be gazing on them with admiration, awe and yes, a little bit of fear.

Now look down at what you are sitting on and tell me, couldn’t you sacrifice ergonomic comfort for a hand made chair that shows everyone who’s boss?

About the author: Jared Wheeler is the chief designer at John Lyle Design and a partner at INOX New York. With years of experience in high-end interior design and luxury furniture design and manufacturing, Wheeler’s creations are collected by connoisseurs around the world. www.johnlyledesign.com and www.inoxnewyork.com

Villa Chan Grajang Phuket, Thailand

Independent reviews of fine rental properties throughout South East Asia.

Chan Grajang provides liberal servings of space, seclusion and extravagance throughout the two levels of its main villa and guest villa, with enough playthings to keep the whole family amused. Inspiring views across Surin and Bang Tao bays beckon from most rooms and from the two-tier terrace, while inside is a retreat of welcoming luxury with plush white sofas, teak and other woods adding warmth to the floors, vaulted ceilings and furnishings.

Being in this sleek and sturdy villa is like cruising on a luxury super-yacht in the sky. Distinctive natural design pieces – driftwood sculptures, coral and rustic carved wood furnishings – add character and a tropical beach feel. Extensive use of glass and clear acrylic along the entire front and sides of most rooms, as barriers on the terrace, and even stretching out along the floor in the grand front entrance hall, enhance the sense of light, spaciousness and connection to the outdoors.

Sunny relaxation is assured with extensive terracing spanning the front of the villa’s top floor and a 22m infinity pool lined with comfy sun beds. Three of four bedrooms in the main villa stand in separate pavilions while an additional two bedrooms are housed in the guest villa which features its own 10m pool and luxurious kitchen-living area. The living and dining areas, which open out to the well-furnished terrace, offer an incredible space for entertaining. A modern fitness room, media room with study, and games room featuring a snooker table and bar, offer a terrific range of indoor delights, while stretching out below is an expansive lawn with a unique three-hole pitch- and-putt green, great fun for kids and adults alike. Setting the right mood is easy with first-class audio-visual systems throughout.

We think…

One would be hard-pressed to come up with a better all-around villa than Chan Grajang, which is generous on a multitude of fronts – size, staffing, views, privacy, entertainment pleasures, charm. Its hilltop position is truly inspiring; we enjoyed wide views over the sea and watched the sun fade into the lush headland beyond. Inside we revelled in the villa’s unusual rustic luxury, where nature’s clever designs – a large twisted driftwood log, for example – meshed perfectly with the sumptuous, finely crafted finishings. And as for the terrace, we’ve never seen an outdoor space furnished so lavishly, where slumber, sunbathing and sunset cocktails could all be enjoyed to the hilt. During our short stay we simply ran out of time to make the most of all the fun stuff; from the games room snooker table to the impressive sound system to the gym, though we did manage to whack a few balls around the pitch-and-putt green, set in lush tropical surrounds – if it weren’t for the rather distracting sea view we’re sure our golf skills would have improved here. While many villas are aimed at being either a romantic hideaway or a fabulous party pad, Villa Chan Grajang manages to be both.

Where can I book?

The prices for a stay at this property range from US$2,250.00 – US$5,500.00 daily incl tax. The villa sleeps 12 people in its 6 bedrooms. Property Report South East Asia is proud to partner with Private Homes and Villas to offer independent reviews of luxury rental properties throughout the region.

For more information about this and other great rental properties, and to book a stay, visit www.property-report. com/site/villa-rentals.

The decline in worldwide retirement provision and pension deficits in both government and private schemes, will inevitably lead to a reduced income stream for those reliant on them to fund their retirement needs.

Many individuals are understandably now in a state of inertia and ‘caught in the headlights’ following the institutional financial fiascos of 2008 and 2011. Reluctant, and indeed fearful to move out of cash deposits, but with interest rates in many cases below that of inflation, the problem is now being compounded.

Pension money should be allocated correctly to minimize the risk of a sudden or indeed protracted fall in its value at a time when an individual may not have the ability to recover losses, also to outpace inflation. Taking an income from a pot that is already in valuation decline is an excellent way to very quickly erode capital. We are constantly amazed at how aggressively allocated some pension plans are and often meet people in their mid-sixties who are heavily reliant on pension income, yet with nearly 100 per cent equity market exposure. In some cases, investors are actually doubling up on risk to recoup earlier losses by investing in higher and higher risk assets, thus inviting further portfolio erosion, not to mention taking on added personal stress at a time when they should be enjoying their retirement.

A correctly structured pre- or post-retirement portfolio should therefore consist of different asset classes that are not directly correlated to each other, such non correlated asset classes are an excellent way to spread risk away from one sector, reduce volatility, diversify portfolio risk, and enhance overall returns.Funds that invest in property related assets fit the bill and can thus provide an added income stream not related to the vagaries of traditional market sectors i.e. stocks, bonds, hedge funds and currencies. An example is the Student Accommodation Fund sector in the UK, which has shown strong historical resilience to market fluctuations and has thus returned a steady income stream to investors with the added benefit of not having to buy the physical property itself or worry about the lack of liquidity that entails. There is a well-documented supply and demand imbalance in this asset class with demonstrably strong fundamentals – low bad debts, and high occupancy levels.

Another property related example in the ‘themed fund’ arena is that of Waste Recycling Facilities, where revenue is generated from gate fees charged per tonne of waste delivered for treatment and from energy and heat production generated from recycled waste. Future revenue streams are provided by securing medium to long term government local authority waste collection contracts, thus creating stable returns.

Institutional investments into recycling facilities by fund managers access the security of freehold land or long leasehold interests, ownership of building and plant assets, and with the additional benefit of Local Authority waste supply and energy sale contracts that provide robust, blue-chip underpinning of contracted revenue streams.

Again, with easy market entry provided via a fund, investors benefit from a profitable business model supported by local government, with strong market dynamics and an environmentally and socially responsible outcome.

Ultimately, individuals must make up their own pension provision shortfalls. Government provision for its citizens will fall way short and private and occupational schemes remain under funded and in many cases technically bankrupt. A well-diversified retirement portfolio of non-correlated income producing assets can help plug the gap.

About the author: Jerry Dingley and Tim Whiteley have a combined 50 years of experience as IFA’s advising expatriates & international investors both Onshore UK and Offshore Asia. Specialist areas include wealth protection services, offshore trusts, QROPS UK pension transfers, and creating tailor made investment solutions for individuals around the world. They can be contacted for more information at info@ifainternationalgroup.com