Property valuation is profitable?
Christened two of the four "East Asian Tigers" together with Korea and Taiwan, they made the transition from being classified as low income third world to their status as newly industrialized economies in a relatively short time. Land is a scarce resource and property prices are understandably high.

But, Hong Kong’s property market has traditionally been 1 conceived of as being more entrepreneurial and less risk-averse character of its population. Realising the systemic dangers an over-valuation of property prices could pose to the overall economy, the government introduced a comprehensive set of anti-speculation measures in May 1996, just before the Asian financial crisis broke out in 1997.



Right now, there are some indicators of a revival in the residential market. With expectations of only better times ahead, speculative activity pushed prices higher and higher. The influx of tourists resulted in a pick-up in business activity for the retail, restaurant and tourism trades. Under the weight of SARS and tough global economic conditions, both markets have languished for several quarters.

However, since the second half of 2003, private home sales in Hong Kong have been encouraging on a year on year basis (see Chart 1), with a corresponding increase in private residential property prices. By contrast, Singapore’s housing market is still languishing, and despite positive economic growth data, the latest URA figures in 1Q 2004 still reveal house prices to be soft.

This conforms to economic logic and is as expected. However, despite the signs of economic growth in both cities, private residential prices in Singapore are still sluggish compared to Hong Kong. Whatever the choice that is made, hard thinking has to be done at the trust drafting stage of what is to happen, and who is to be empowered to act, if the unexpected event occurs - and what is meant by such an event? - after the instrument has taken effect. Property valuation framework is key and snappy if preformed by expert and stipend property valuer to face advantage in your structure.