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Real residential prices – is now the time to buy?

the private investorInsights to real estate wealth Vol.3 2012

In this report, we examine the effects of inflation on house prices across ten cities over the past decade. Hong Kong has seen real house prices rise by 150% compared to the 65% increase in London and 26% in Singapore over the same period. Prices in London appear stable in real terms, rising in line with inflation in nominal terms. Bargains may be found in Jakarta and Bangkok, whereby house prices have risen sharply in nominal terms, but in real terms there is still room for growth.

Where to find yield?The continuing uncertainty in the Eurozone, coupled with the latest round of quantitative easing and loosening of monetary policy in the United States, Japan and United Kingdom, continues to drive bond yields to record lows. Many expect inflation to pick up following ongoing intervention by central banks. In this scenario, where should investors put their money? An option for investors is to buy real estate – for two reasons. First, its rental income stream provides a yield in excess of that on bonds. Second, it provides the potential for the rental income stream to rise should inflationary expectations take hold.

Residential property provides an attractive real estate category for investors. The value of residential property dwarfs the commercial property markets—often four to five times the size, depending on the city. Residential property is composed of smaller lot sizes, creating a bigger and more liquid market for investors to operate. The downside is often the cost of managing the property to maximize returns, which can potentially be higher for the residential market. The other issue with residential property markets is that they can be more prone to market psychology, wherein buyers expect prices to carry on rising indefinitely until the crash comes.

Other factors that affect residential markets are the availability of credit, and the degree of government intervention, particularly in Asia. Essentially, this is a situation in which who you are and what passport you carry define and determine your investment options within a particular market or sub-market. In turn, this makes it difficult to draw conclusions on which cities present the most compelling opportunities. Buying in a city that has historically not imposed restrictions on foreign ownership within the residential market does not guarantee that this will not happen in the future. Singapore has long restricted certain categories of ownership

The effects of inflation on ten key residential markets — a guide for buyers

Real Residential Property Pricesof landed property, and has frequently introduced additional taxes on buyers and sellers of housing units to try to cool the market. In recent months, Hong Kong has introduced similar measures and has announced that the new apartments being built on the old Kai Tak airport site would have restrictions on them, reserving them for Hong Kong’s permanent residents.

So the next question is, if not where, then when to enter the market? Since the global financial crisis, when house prices in many global cities rose quite steeply between 2004 and 2008, the outlook across cities has been somewhat mixed. A recent report from the OECD highlights that house prices were continuing to fall in about half the countries surveyed toward the end of last year and conversely rising in the other half including China, India, Indonesia and Hong Kong. Meanwhile, other countries showed only slight falls of less than 5% such as the United States and United Kingdom.

For residential investment, location is particularly crucial. While the United Kingdom overall might have fallen by 5% at the end of 2011, London tells a very different story. As a global city, London attracted a great deal of money from overseas investors, looking for a safe haven away from the economic uncertainty.

So if house prices are on the rise in London and some key cities in Asia – are they now overpriced, or should one buy?Setting aside our previous discussion about the inability to generalize about where one should buy, it is worth looking at what real house prices have done over the past decade.

Here, we have looked at real house prices in ten cities that high-net-worth (HNW) investors may want to look at buying in. We have selected five cities that might appeal as landlord and tenant investment buys, namely London, New York, Hong Kong, Singapore and Tokyo. We have also looked at five cities—Bangkok, Jakarta, Macau, Mumbai and Shanghai—where Asian investors may want to have a holiday apartment as a lifestyle choice. We have looked at real house price movements—removing the effects of inflation—measured as consumer price inflation (CPI) by national governments. In turn, this allows for a comparison between cities in countries with differing inflation rates.

Table 1: Real and Nominal House Price AppreciationReal Nominal

2000 2012 Change 2000 2012 ChangeHong Kong 100 270.30 170.0% 100 310 209.5%London 100 165.30 65.3% 100 219 119.0%Manhattan 100 145.69 45.7% 100 195 95.0%Sydney 100 125.20 25.2% 100 121.42 21.4%Singapore 100 125.53 25.5% 100 161.50 61.5%

Table 2: Real and Nominal House Price AppreciationReal Nominal

2005 2012 Change 2005 2012 ChangeBangkok 100 85 -14.9% 100 106 5.5%Shanghai 100 144 44.0% 100 181 80.8%Jakarta 100 95 -5.1% 100 152 52.0%Mumbai 100 131 30.9% 100 232 132.0%Macau 100 138.53 38.4% 100 194 93.6%

Buy To Let CitiesFor the five investment buy to let cities, in real terms from 2000 to 2012, house prices have appreciated by 170% in Hong Kong. That compares to just 26% in Singapore over the same period. Whilst future growth is always a balance of supply and demand, plus the availability of credit, it is worth looking at historical movements in order to make comparisons to see which city might have more potential upside.

Lifestyle CitiesOf the five additional cities we have featured, the gap between nominal and real residential prices are greater as inflation is higher.

Based on these cities, Jakarta and Bangkok probably has the most upside to gain in real terms relative to other markets. Shanghai has seen price rises in real terms, similar to what happened in Hong Kong. In the last year, in both nominal and real terms, price rises have slowed (see chart on page 22).

Nominal House Price Appreciation Buy To Let Cities Nominal House Price Appreciation Lifestyle Cities

Real House Price Appreciation Buy To Let Cities Real House Price Appreciation Lifestyle Cities

Source: Jones Lang LaSalle Source: Jones Lang LaSalle

WhAT you CAn BuyOn the subsequent pages for each city, we provide data on the nominal and real house price movements over time, as well as an outlook for each of the markets. We have made suggestions on what you can buy, with a wide range of ideas on how to gain exposure to the residential markets. From historic apartments in London, to whole multi-family apartment blocks in New York, or new residential development sites in Tokyo, Jones Lang LaSalle residential and research teams are here to help.

Hong Kong London Manhattan Tokyo Singapore

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Hong Kong London Manhattan Tokyo Singapore2001 2003 2005 2011 20122000 2002 2004 2006 20092007 20102008

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Shanghai Macau Mumbai Jakarta Bangkok2005 2011 20122006 20092007 20102008

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Shanghai Macau Mumbai Jakarta Bangkok

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Nominal Real

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502001 2003 2005 2011 20122000 2002 2004 2006 20092007 20102008

4 Jones Lang LaSalle • THE PRIVATE INVESTOR

HONg KONg What does USD 1 - 5 million buy?A 2 bedroom apartment on a high floor, located in a new residential development close to the escalators on Robinson Road. This circa 1,400 sq ft apartment includes hi-end fixtures and fittings, with hard wood flooring.

What does USD 5 - 10 million buy?A circa 4,000 sq ft, 5 bedroom duplex apartment located in Mid Levels East, within a 5-10 minute drive from Causeway Bay. Highlights include an internal staircase leading to 1,000 sq ft private rooftop, offering sweeping views of the mountains.

“Key market fundamentals are likely to remain positive, with low interest rates being

supported by a healthy labour market and a tight future supply pipeline.”

Reaching new heights 12 month market outlookKey market fundamentals are likely to remain positive, with low interest rates being supported by a healthy labour market and a tight future supply pipeline. Much of this will be offset by cooling mechanisms implemented by the government, and capital value growth is expected to slow. Leasing activity is expected to remain subdued on the back of the limited inflow of expatriates and, as such, we continue to believe that luxury rents will retreat by 10–15% in 2012.

Market overviewSales volumes have risen on the back of improved market sentiment, with the number of residential sales and purchase agreements up 36% y-o-y 3Q 2012. Recently, however, the government has introduced new measures to cool the property market through higher stamp duties being imposed on foreign investors. This will take the momentum out of investment activity and ease upward pressure on prices. In the leasing market, weak expatriate headcount growth continues to dampen demand in the upper end of the luxury sector; however, demand in the mid-end of the luxury market remained intact. Supply increased with three luxury projects being completed in 3Q 2012. Investment activity slowed during the quarter but remains up on last year and luxury residential capital values continued on an upward trend bringing year-to-date growth to 5.2%. Conversely, luxury rents continued to move lower on the back of weak expatriate demand, but the rate of deprecation slowed from the first half of 2012.

Hong Kong: Nominal and Real House Prices

Winfield, Hong Kong

Nominal Real

220

140

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80100

60 2001 2003 2005 2011 20122000 2002 2004 2006 20092007 20102008

Index 100 = 2000


What does USD 1 - 5 million buy?This circa 1,400 sq ft 2 bedroom penthouse is situated in Central London, off Regent Street at the convergence of Mayfair and Soho, offering a spacious and unique living space rarely found in the W1 district.

What does USD 5 - 10 million buy?A stunning duplex apartment in an award winning gated development, situated in the heart of Knightsbridge. This highly spacious apartment comprises circa 2,180 sq ft of living space and has a large hall, 2 reception rooms, 4 double bedrooms and a sprawling terrace. Additional amenities include 24 hour security, a swimming pool and gymnasium, and secure underground parking.

London has a fundamental undersupply of housing and although construction activity has picked up over the past 2-3 years housing completions are around two-thirds of the level needed to keep pace with demand. While this is an on-going problem for London it does serve to support house prices and rents as demand is typically greater than available supply.

12 month market outlookWe expect London to lead the UK economic recovery and with global economies also set to perform better over the next few years, despite Eurozone concerns, demand for London residential property should also increase. We expect heightened demand from both domestic and international buyers with London’s safe haven status and strong investment track record playing key roles. We are also forecasting more renters as the economy recovers and employment levels pick up.

New supply is expected to remain heavily constrained, especially as development funding continues to restrict construction activity, and this is likely to lead to increasing upward pressure on prices and rents as the economic recovery builds.

Internationally popular property market Market overviewThe Central London residential market has proved remarkably resilient in recent years with prices rebounding strongly following the global credit crisis. International investors have been particularly attracted by the significant currency advantages and London’s strong growth profile as well as the security, safe haven and wealth preservation attributes that apply to the relatively economic and politically stable UK capital. Prices are rising by around 3% pa on average although more central and higher priced locations are seeing greater growth.

Rents are rising in the order of 6% pa by 3Q 2012 where demand is strong and has been increasing notably over the past five years. The rental sector was already expanding prior to the financial crisis but with onerous deposit requirements, mortgage availability and mortgage pricing all inhibiting home buying many have turned to renting. This has led to strong rent rises in recent years and has also meant better yields for investors as well as lower void periods.

“...underlying demand is still strong, particularly from international buyers

from all parts of the world who want to buy in zone 1.”

LONDON

London: Nominal and Real House Prices

Embassy Gardens, England

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80100

602001 2003 2005 2011 20122000 2002 2004 2006 20092007 20102008

Index 100 = 2000


12 month market outlookThe residential market of New York has proved buoyant during the economic downturn and has fared better than others in the United States. Strong demand and limited new supply have created an undersupply condition for new properties in a number of key Manhattan submarkets, resulting in increased prices. This could be expected to continue as Manhattan has a very high barrier to entry. Development sites may take years to assemble, and high-rise construction is technically difficult.

Market overviewNew York City has proven to be the most resilient residential market in the United States, faring better during the economic downturn than the rest of the nation. This is partly due to the supply and demand dynamic that sets the city apart. New York has outperformed other markets and is seen as a relative safe haven from unstable economic conditions – particularly in central areas.

Market-wide sales for apartments came in at USD 16.43 billion, up 15% annually with at least 575 transactions being closed during 3Q 2012. Despite this, the levels of project commencements are inadequate to sustain the level of population growth, which is placing upward pressure on prices. As a result, Manhattan is experiencing low vacancy rates. Rental values are up 4% overall across all apartment categories compared to the previous quarter, with studio units seeing the greatest increase in price.

“New York has outperformed other markets and is seen as a relative safe haven

from unstable economic conditions...”

Enjoying the ups

NEW YORK What does USD 1 - 5 million buy?A 1920s pre-war condominium on Central Park West offers a combination of the new and old. With the living, dining and master bedroom facing the park, this apartment is truly a rare find. This 3 bedroom home has new fixtures and fittings, with nothing more than 3 years old. A truly unique old world offering, however, truly separates this development from the rest as the building still maintains direct door to door mail delivery.

What does USD 5 - 10 million buy?An exquisite 4 bedroom triplex penthouse loft in a converted 19th Century warehouse in historic Soho. A keyed-elevator opens to sun-drenched living room, with high ceilings and wide plank flooring. This circa 4,000 sq ft, 4 bedroom apartment offers opulence amid grandeur and luxury.

New York: Nominal and Real House Prices

The W Residences, United States of America

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80100

602001 2003 2005 2011 20122000 2002 2004 2006 20092007 20102008

Index 100 = 2000


Off the peaks with prime sector turning back to growth

SINgAPORE

“Pre-sale rates remain healthy in prime areas and new supply has eased in 3Q 2012 after a

healthy wave of completions last quarter.”

Market overviewSales volumes have eased in both the new sale and resale markets in 3Q 2012 after experiencing growth in the previous quarter. Pre-sale rates remain healthy in prime areas and new supply has eased in 3Q 2012 after a healthy wave of completions last quarter.

There was a reallocation of demand towards the prime sector in the third quarter, as housing allowances eased and prospective renters were attracted to the more affordable options outside of the luxury sector. Net effective rents in the luxury sector declined by 0.2% in the quarter but the prime sector experienced growth of 1.2%. Capital values in the luxury sector were stable in 3Q 2012 and the prime sector reversed the downward trend of the previous two quarters by posting growth of 0.4%. Despite the rent and capital value growth experienced in the prime sector, sales activity slowed in 3Q 2012.

12 month market outlookAs the uncertainty in the global economy remains, rents and capital values are likely to continue to stagnate as tenants and buyers look for good value properties in light of falling housing allowances and higher prices.

What does USD 1 - 5 million buy?A home in the heart of the city, this apartment offers the convenience and sophistication of cosmopolitan living amidst lush greenery. Within a few minutes walk from Orchard Road, this location offers all the perks of modern living. With just over 2,200 sq ft of living space, this 4 bedrooms and 4 bathrooms apartment has ample space for comfortable living.

What does USD 5 - 10 million buy?A freehold penthouse with panoramic views of the city and circa 4,470 sq ft of living space. Completed in 2003, this development comprises 46 units over 20 floors and is within a few minutes walk to Newton MRT Station and Orchard MRT Station. The condominium is also in close proximity to the Orchard Road shopping belt, a number of international schools and renowned hospitals.

Singapore: Nominal and Real House Prices

111 Emerald Hill, Singapore

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602001 2003 2005 2011 20122000 2002 2004 2006 20092007 20102008

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What does USD 1 - 5 million buy?A luxurious circa 1,400 sq ft apartment in a high-rise tower, located in Shibuya, the second largest city in Tokyo can be had for USD 2 million. The building is located near Omotesando, one of the forefront fashion shopping districts in Tokyo. In addition to this, an extensive collection of cafes, restaurants, clubs and bars can be found.

What does USD 5 - 10 million buy?A fashionable apartment in the No. 1 address in Tokyo, Roppongi Hills at around USD 5 million. Facilities include bilingual concierge staff, doorman, porter, the Roppongi Hills Spa and gym, in-house doctor, sky lounge, rooftop gardens and guest suites. Roppongi Hills is very popular and well known amongst the expatriate and local community. Various company directors, actors and musicians live in the complex. Market overview

Capital values in new and existing condominiums have continued to fall in 3Q 2012, albeit at a slower pace than previous quarters. However, the number of dwelling commencements has increased so far in 2012. Demand is being underpinned by both foreign and domestic purchasers as well as an element of reconstruction associated with the 2011 earthquake. Land prices have remained more resilient and relatively unchanged over the year. On a year-to-date basis, sales volumes have improved with record low interest rates, better access to capital and an element of haste associated with the looming sales tax increase all contributing to stronger enquiry levels.

12 month market outlookCapital values in Tokyo’s condominium market are expected to stabilize over the next six months. However, risks to the downside over the medium-term remain prevalent as purchasers start to price in increased acquisition costs associated with the sales tax amendments. It is anticipated that sales volumes will remain relatively healthy in the run-up to the 2014 changes and developers will benefit accordingly.

Stable land prices and stronger interest

“...sales volumes have improved with record low interest rates, better access to capital

and an element of haste associated with the looming sales tax increase...”

TOKYO

Tokyo: Nominal and Real House Prices

The Parkhouse Shinjuku Tower, Japan

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602001 2003 2005 2011 20122000 2002 2004 2006 20092007 20102008

Index 100 = 2000


What USD 1 million buy?A brand new residential building located on the fashionable Ekkamai Road. This modern apartment comprises circa 1,130 sq ft of NLA and is a stone’s throw away from Ekkamai BTS Skytrain Station (Bangkok Transport System). The development is surrounded by amenities such as trendy restaurants, hospitals, schools, supermarkets and cinemas.

What does USD 1 - 5 million buy?The most highly anticipated residential development in Bangkok, an iconic masterpiece designed by world renowned architects. Located in Bangkok’s CBD, Sathorn Road, apartment sizes range from circa 1,300 sq ft of NLA to 3,530 sq ft of NLA.

12 month market outlookThe Thai economy has proved to be resilient against many setbacks, such as the resurfacing of political tension in June, and has shown a marked improvement in 2012. Barring further political tension, demand from both end-user buyers and investors is expected to remain stable for the rest of 2012. There remains a large amount of new supply due for completion towards the end of 2012 and into early 2013. Coupled with stable take-up, the unsold apartment rate during this period of increasing supply is likely to rise. Despite this, both effective rents and capital values are expected to maintain an upward trajectory as healthy transaction volumes and lower interest rates continue to support market fundamentals.

“Pre-sales in new developments continue to deliver strong results,

particularly in central areas.”

Popular pre-sales and resilient rents

BANgKOK

Market overviewTake-up remained strong in 3Q 2012, with positive sales and leasing activity in condominium units. The improved economic environment has augured well for condominium demand. Pre-sales in new developments continue to deliver strong results, particularly in central areas. New supply remains subdued with just two projects completing in 3Q 2012. The development pipeline is however starting to gather momentum with seven new projects launched during the quarter. The modest supply and firming demand has helped push net effective rents slightly higher by 0.7% q-o-q to THB 5,248 per sqm. Capital values also retained an upward trend (+0.8% q-o-q) with the help of healthy demand in the inner city pushing values higher.

Bangkok: Nominal and Real House Prices

State Tower, Thailand

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200

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160180

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6080

402001 2003 2005 2011 20122000 2002 2004 2006 20092007 20102008

Index 100 = 2000


What USD 1 million buy?Located in South Jakarta, this 5 bedroom, freehold apartment gives you easy access to both the CBD and downtown and is minutes away from the main highway. The apartment is impeccably designed and includes highly sought after facilities such as, tennis courts, a swimming pool and gym, and a communal garden.

What does USD 1 - 5 million buy?A circa 5,400 sq ft apartment located in the CBD, with direct access to a shopping centre and within walking distance to Indonesia’s Stock Exchange Office. With 4 bedrooms and 5 bathrooms, this apartment offers ample living space with top quality fixtures and fittings.

12 month market outlookThe luxury rental apartment market is expected to continue showing positive growth, aligned with the expectation that expatriate and tourist arrivals will increase. The strata-title condominium market should also show further growth, benefiting from the low interest rate environment and growing demand for city living. Rents are forecasted to move at around the same pace as last year, although it is likely to experience slower growth over the next few years. Capital values should also improve as more people perceive the luxury condominium market as an attractive investment, offering stable income and high yields.

Market overviewThe luxury rental apartment market continues to show signs of growing demand, albeit at a slower growth rate. The buoyant momentum continued to sustain corporate demand. Newer projects at premium locations posted high occupancy rates, reaching over 90% in some cases. Older projects have tried to retain lower occupancy rates by providing more short-term leases with terms as brief as three months. Luxury condominium sales continue to be supported by growing optimism in the market and interest from a range of investors. Demand at this upper end has taken the interest of a number of foreign investors looking to fund luxury projects as well as interest from offshore serviced apartment operators. The healthy demand in the apartment market has had a positive impact on rental growth this quarter. Average rents rose by approximately 4.2% q-o-q compared to 4.8% in 2Q 2012. Capital values grew by around 6.3% q-o-q (or 24.2% over the year), with yields tightening slightly to around 9.8%.

Recovering at last

“Luxury condominium sales continue to be supported by

growing optimism in the market...”

JAKARTA

Jakarta: Nominal and Real House Prices

AYANA Residences, Indonesia

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602005 2011 20122006 20092007 20102008

Index 100 = 2005


What USD 1 million buy?A seafront luxury property near the Macau bridge. With its modern facilities, this 700 sq ft, 2 bedroom apartment provides for a cosy holiday home.

What does USD 1 - 5 million buy?A luxury apartment located between MgM grand Macau and Wynn Resort, with a 180 degree view of Nam Van Lake and Macau Tower. Apartment sizes range from circa circa 650 sq ft up until 3,000 sq ft.

12 month market outlookEconomic fundamentals remain in good shape, with strong investment demand for residential properties being observed. Investment stock remains limited in availability, and with this, residential prices are set to gain further over the next 12 months. government cooling programs will take some of the momentum out of growth, with many of the policies aimed at foreign and high end investors.

The commencement of more private investment projects and the construction of new public facilities are expected to bring more expatriate workers to the city. This should lend support to the residential leasing market and help drive rents higher.

Market overviewThe Macau government has taken steps to cool the residential real estate markets following a period of strong growth in the first three quarters of 2012. Cooling mechanisms include the use of varying applications of stamp duty based on ownership timeframes as well as the use of mortgage ceilings – particularly on higher priced property.

Total transactions of 7,302 were recorded between June-August, an increase of 4.1% from the preceding three months, according to the Statistics and Census Services (DSEC). The strong demand for leasing properties from expatriates helped boost high-end residential rents by 15.5% over 1H 2012. Accordingly, higher transaction volumes and improved leasing demand has placed upward pressure on capital values with first half growth of 10.6%. Market yields edged up slightly from 2.3% to 2.5% during the quarter, but nonetheless remained at extraordinarily low levels.

“Economic fundamentals remain in good shape, with strong investment demand

for residential properties being observed.”

Moving on up

MACAU

Macau: Nominal and Real House Prices

The Buckingham, Macau

Nominal Real

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Index 100 = 2003


What does USD 1 - 5 million buy?A 3 bedroom apartment in a modern multi-storey apartment block sprawling across 3,200 sq ft of NLA. Situated in the fashionable district of Worli, apartments enjoy a spectacular view and have access to state-of-the-art amenities.

What does USD 5 - 10 million buy?An apartment within a 40-story residential development. The apartment’s retro-futuristic art-deco design is a homage to Mumbai’s rich art deco architecture and has influenced many newer towers with its throwback look and falling water podium. With 5,600 sq ft of NLA, this 5 bedroom apartment offers ample living space.

12 month market outlookCapital values are expected to appreciate marginally over the next 12 months. Sales volumes and capital values are likely to improve more so in the sub INR 10,000 per sq ft price bracket. Whilst there is a good level of qualified enquiry in the luxury market, improving sales volumes will remain dependent upon the developer’s willingness to make further concessions on their stock. Rental values are expected to edge higher in line with capital value growth. As a result, yields are likely to stabilize at around 3.8%.

Prices rising with rising construction costsMarket overviewProject commencements continue to rise off the back of stronger sales results in 3Q 2012. New launches in 3Q 2012 were up 66.5% from the previous quarter. gross rents and capital values grew in all sub-markets during the quarter as increased construction costs push prices higher. The amendments to the Development Control Regulations (DCR) have also attributed to this price increase. Affordability issues continue to impact developers’ decisions with an increasing level of new projects being priced under the INR 6,000 sq ft mark. At the luxury end of the market, just 18% of project commencements were in developments priced over INR 10,000 per sq ft – compared with 27% last quarter.

“New launches in 3Q 2012 were up 66.5% from the previous quarter.”

MUMBAI

Mumbai: Nominal and Real House Prices

Worli Residency, India

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Index 100 = 2003


Market overviewThe easing of monetary policy by the central government earlier in the year has helped to stabilize the residential market. Sales volumes in the high-end residential space eased in 3Q 2012 after a strong wave of investment activity in the previous quarter. In addition, multinational corporations (MNCs) are continuing to deploy expatriates, strengthening the high-end leasing market. Recently completed projects in central Shanghai have seen prices relatively steady, with some discounts being offered. However, steady demand is being equally matched by new supply which has helped to keep rental values steady over the past quarter after ten consecutive quarters of growth.

Real prices show time to buy 12 month market outlookFurther monetary policy easing is likely to improve the affordability of homes for buyers. However, Home Purchase Restrictions (HPR) may dampen demand within the high-end space as it continues to be strictly enforced in 2012. Sales recovery will be gradual, with most improvements being driven by discounts offered by new high-end projects.

“Sales volumes in the high-end residential space eased in 3Q 2012 after a strong wave of investment activity in the previous quarter.”

SHANgHAI

Shangai: Nominal and Real House Prices

What does USD 1 - 5 million buy?Adjacent to the Huangpu River, this apartment sits on the prime part of the newly redeveloped Luwan riverfront and overlooks the iconic pavilions from the 2010 World Expo across the river. It enjoys sweeping views and convenient transportation links bring it within close reach of key business districts in Shanghai: Huaihai Road, Xujiahui, and People’s Square. Apartment sizes vary from circa 2,300 sq ft to 2,800 sq ft.

What does USD 5 - 10 million buy?An extravagant apartment in the fashionable Xintiandi area, steps away from three different metro lines and minutes from the Huaihai Road commercial district. With 4 bedrooms and over 4,000 sq ft of NLA, this apartment offers a luxurious refuge in the heart of the city.

Imperial Axis, China

AUTHORS

Dr Megan WaltersHead of Research Asia Pacific Capital Markets [email protected]

Harleen ThakralAssistant Manager Asia Pacific Capital Markets [email protected]

Nicholas WilsonSenior Research Analyst Asia Pacific Capital Markets [email protected]

COPYRIGHT © JONES LANG LASALLE 2012 All rights reserved.All information contained herein is intended as guide only and does not constitute advice. It does not constitute any offer or part of any contract for sale, lease or otherwise. All details are approximate and have not been independently verified. Users should make their own enquiries to verify and satisfy themselves of all aspects of the information (including without limitation, any income, rentals, dimensions, areas, zoning and permits). While the information has been prepared in good faith and with due care, no representations or warranties are made (express or implied) as to the accuracy, currency, completeness, suitability or otherwise of such information. Jones Lang LaSalle, its officers, employees, subcontractors, agents and clients shall not be liable to any person for any loss, liability, damage or expense arising directly or indirectly from or connected in any way with any use or reliance on such information. The whole or any part of this document must not be reproduced without written consent from Jones Lang LaSalle.

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