Pakistan Property & Real Estate News

Gas pipeline installation project launched in DHA Phase-VI

LAHORE: The Defence Housing Authority (DHA) administration launched a gas pipeline installation project in Sector B of Phase-VI on Thursday.

DHA Administrator Brigadier Muhammad Aslam said the DHA administration was trying its best to complete the development in the new phases as soon as possible to facilitate the residents of the area.

He pointed out that Phase-VI was the largest of the 10 phases built by DHA and four and eight-marla plots were available in the locality for commercial use. Aslam said a football and hockey ground was designed for Phase-VI and stern security measures had also been devised for the phase.

7-storey parking plaza at Liberty

The Traffic Engineering and Planning Department (TEPA) will construct a seven-storey parking plaza in the provincial capital with an estimated cost of Rs 499 million.

The parking plaza to be constructed at the Liberty market on 3 kanals and 16 marlas land with a capacity of 206 cars, will be operative for 12 hours a day and its proposed rate of parking is said to be Rs 25 per hour.

Talking about the salient features of the parking plaza, a senior TEPA official said that the basement, ground and first floor of the plaza would contain shops and restaurants while the second, third, fourth and fifth floors would be used for parking of vehicles. He said two additional floors would be constructed, later. He said two capsule lifts would also be installed in the plaza.

He said a back-up power system would also be installed in the plaza, adding the government would focus on the safety and security of the people. For the purpose, security devices such as road blockers, car scanners, CCTV, public address system, fire alarm and fire fighting, audio and emergency buttons would be installed in the plaza. He said the elimination of potential hiding places has also been taken into consideration.

NOC issued to CDA for water supply to G-13-14

The dispute between Capital Development Authority (CDA) and Rawalpindi Cantonment Board (RCB) over supply of water to Sectors G-13 and G-14 has been solved.

RCB issued NOC to CDA for supplying water from Tomar Reservoir to Sectors G-13 and 14. The Cantt Board earlier refused to issue NOC while RDA had already issued the NOC.

The row has been solved after a meeting between Director General Water Management CDA Sana Ullah Aman and Executive Officer RCB Adil Rafi.

The DG water management during the meeting said the construction of houses has been started in Sectors G-13 and G-14 and there is immense need of water there. He requested a daily supply of 2 million gallons of water to the area while CDA would meet its requirement from Khanpur Dam.

DG Water Management Sana Ullah Aman said CDA would issue a tender for laying water pipelines.

More properties being built in the UK than a year ago

The number of new properties being built is increasing but they are still way below what they were a year ago and the situation is set to result in severe shortages in years to come.

The latest figures from the NHBC show that private sector starts are 36% on a year ago although they have reached the highest point in almost a year.

The warranty and insurance provider received 8,305 applications in June 2009 for builders to start new properties in the combined private and public sectors, the greatest number since July 2008, when 9,530 applications were received. However, private sector new starts (excluding housing associations) were down 36% on the same three-month period a year ago (20,973).

There is a significant fluctuation in the number of applications across the UK, with figures for some regions, including Greater London and Merseyside, more than 50% down on a year ago.

A shortage of new build housing will emerge particularly in the South East of England next year, according to the latest Knight Frank residential development review.

New build starts in the region this year are likely to amount to the lowest since the 1950s. When combined with the lack of supply in the second-hard market, caused by the number of potential vendors opting to 'wait out' the recession, this could lead to a real shortage of properties for sale next year.

'Developers who opt to move now may be in the position of being able to sell into an under supplied market next year. However, they need to be very cautious, opting to deliver in-demand family housing into those areas with resilient housing markets. Elsewhere, a greater number of forced sales could undermine this strategy,' said Jon Neale, head of development research at Knight Frank.

The property consultants have noticed a growing interest from residential developers and house builders for well located locations. This is in complete contrast to the last quarter of 2008 where there seemed to be little appetite for any form of speculative land acquisition.

But the report suggests that, given the current constraints in the market, it will be difficult for the required delivery levels to be achieved unless new models are found for regeneration schemes or more Greenfield land is released for development.

The National Institute of Economic and Social Research warned that it is a lack of available homes that is driving up recent prices increases in parts of the UK.

As a result, the think tank expects the house price slump to persist for another two years.

'The temporary rise in prices is probably the result of limited supply. There has been talk of stabilisation and some recovery in the housing market, but we don't think this is the case. We only see growth in the housing market returning in 2012,' it said.

DHA announces new residential project on Super Highway

The launch of a new residential-cum-commercial venture on the Super Highway, under the brand name of ‘DHA City Karachi,’ was announced on Tuesday by the Defence Housing Authority (DHA).

DHA Administrator Brig. Khalid Tirmizi said that the new residential estate coming up on the Super Highway was spread over an area of approximately 12,000 acres and was at a 20-minute drive from the Karachi International Airport. He said that DHA City has a four-kilometre frontage on the Super Highway and is located in the proximity of the upcoming educational city and the PIA Cabin Crew Society.

Tirmizi added that the new residential estate would have a network of wide roads and adequate green and open areas as per modern town planning trends and is being developed in the backdrop of a semi-hilly terrain and picturesque landscape.

Application forms for the scheme can be obtained from all branches of designated commercial banks free of cost and can also be downloaded from http://www.dhakarachi.org. A call centre with a Universal Access Number (111-589-589) has been established at DHA’s Main Office to provide information about the scheme.

Cyprus promises title deed resolution

Beleaguered property investors in southern Cyprus, many of them British, are hoping that they will soon learn the detail of how the country's Interior Ministry is planning to sort out the title deed mess that has dogged the Mediterranean island's real estate sector.

New measures to speed up the issuing of title deeds affecting over 100,000 properties, some of which have been without legal ownership documents for decades, should be put before politicians within two months, a spokesman for the ministry confirmed.

But property owners are not holding their breath. They have been promised a resolution many times and now 24 British and Cypriot are to take their case to the High Court in London. Katherine Alexander-Theodotou, chair of the Anglo-Hellenic & Cypriot Law Association said that if that does not succeed then they are prepared to go to the European courts.

'We are not just aiming to help individual property-owners, we are pursuing the case in the High Court in order to open the road to create a healthy property system in Cyprus,' she said. Two UK barristers have assessed the chances of the case succeeding as being higher than 65% so the funding is ultimately being covered by insurance companies.

Denis O'Hare, spokesman for the Cyprus Property Action Group said many people have paid for their properties but years later still don't have title deeds. The organization estimates that the titles to about 100,000 properties in the Republic of Cyprus have never been issued by the state land registry, and that around 30,000 of those properties are owned by expatriates. As the area's total population is just 792,000, the properties in question represent a sizeable proportion of the housing stock.

One of the problems is that the issue covers a wide variety of different kinds of properties as well as each case not being the same. There are properties that have never been issued with deeds, properties that were built illegally, and properties whose developers mortgaged the land to the banks.

The problem is so widespread that there is likely to be a huge logjam as the Land Registry has to work through the cases.

Model ‘forest park’ to be developed near Rawal Lake

Islamabad: Sources in the Capital Development Authority (CDA) told ‘The News’ that the park will be developed in five years at a cost of Rs239 million. The park will be divided into blocks of 4 to 10 acres. These blocks will be given to government and private sector institutions in addition to academic institutions for afforestation. Plantation will be carried out by institutions and departments. Boards will be displayed in every block, mentioning the name of the institution or department, whatever the case may be. These boards will also mention the total number of saplings planted, their species and other details, sources said.

Sources said that the sponsoring agency of the project would be Planning and Development Division. The CDA Environment Directorate will implement the project under the supervision and guidance of Planning and Development Division.

The forestry park is being developed to protect the local flora and fauna. It will also have the gene pool facility for posterity besides recreational and educational facilities. It will help create awareness among people about the importance of preserving natural environment, sources said.

The major activities in the first phase of the project will include contour (half metre) mapping, survey, land development, ridging, bush clearance, purchase of plants, digging of pits, plantation of indigenous species at 10’X10’ spacing, fencing of poles and gates, construction of water courses along with four water tanks, installation of two turbine tubewells and setting up of rain harvesting mechanism.

The park will be equipped with all facilities, including horse and jeep tracks, enclosures of local birds and animals, camping sites, picnic spots, shelters, huts and jeep safari. A specific area will be allocated for the nursery of indigenous plants.

CDA Director Environment Malik Auliya Khan told ‘The News’ that the construction work on the forestry park would hopefully be started in a couple of days and it would be completed in five years with financial support of the Planning and Development Division.

He said the main purpose of the project is to sustain wildlife and maintain environmental settings of the area. According to him, indigenous saplings and different species of animals would be introduced in the park. The park would also have camping facility especially for students.

“Jogging tracks would be developed besides various other recreational facilities but all development work would be completed without causing any kind of damage to the natural environment of the area,” he said.

Malik Auliya Khan said that the Planning Commission has approved the project after thorough consideration and it would continue to provide every kind of assistance to the CDA for its timely completion.

An annual plantation competition would be a regular feature. All institutions and departments having blocks in the park would participate in it. “Participants would be bound to plant only indigenous species of plants.”

DHA Cogen Power and Desalination Plant to be online by August

KARACHI: The much delayed DHA Cogen Power and Desalination Plant, located in Karachi’s Defence Housing Authority, will be online by August, DHA Administrator Brigadier Khalid Tirmizi told The News on Tuesday.

The 80-megawatt gas-fired plant was slated to start production earlier this year but was delayed owing to a number of reasons.

This announcement has been welcomed because of the ongoing power crisis in Karachi, where rioters have damaged property worth millions of rupees over the past couple of days following a major power outage. The outage came on the heels of a record downpour in Pakistan’s largest city on Saturday, which left civic services in a mess.

Brigadier Tirmizi said the fact that the plant has been brought back on track has to do with the efforts made by officials as well as all stakeholders. “We wanted to show that the project would succeed. And I am happy to say that Secretary Defence, the Corps Commander and senior officials of the Water and Power Ministry have played a vital part.”

Apart from a shortage in power generation capacity, Karachi’s local power utility also suffers from an outdated power transmission and distribution system. Enhancement of local power generation facilities is being seen as a step towards improving the power situation in the country in the coming years.

However, negotiations still have to be finalised with the Karachi Electric Supply Company over the sale of power from the plant to the utility. Brigadier Tirmizi said negotiations with Sui Southern Gas Company had been completed and now the plant was entering its testing phase.

It may be recalled that DHA Cogen is the first power and water project of its kind in the country. It started supply of water and electricity to people of Karachi in April 2008. DHA Cogeneration Plant is a project undertaken as a joint venture with foreign investment.

In June 2008, AEI Asia Limited (Hong Kong), a subsidiary of Ashmore Funds (USA), acquired a controlling interest in DCL. The group operates in more than 20 countries.

DHA Cogen Limited (DCL), which was supplying three MGD water to the city and 80 MW of electricity to KESC since April 2008, stopped working owing to a technical fault. The plant stopped power production after strong recommendations by Siemens Pakistan, the project designer, which investigated some technical problems in the gas turbine.

The plant was to provide three million gallons of water per day to residents of Defence and Clifton, and 80 megawatts power to the Karachi Electric Supply Company (KESC).

Earlier this year, banks agreed to provide 50 per cent of the plant’s repair cost after the contractor asked for an extra $10 million for repair and revival of the plant. This was the bone of contention between the contractor and the operating company.

Under a deal worked out with banks, the remaining 50pc extra cost would be borne by DCL, a company in which the Defence Housing Authority has a stake.

The executive board of DHA was briefed in January 2009 that the plant, which fell into disrepair on September 12, 2008, would restart its functioning by early March after repair and replacement of its damaged parts. This date has now been moved to August. Under the second phase of the plant, power production will be enhanced to 105 MW while desalination of water will rise to 5 MGD.

Mini property boom in Nepal

Nepal may not be the obvious next property hotspot but the mountainous country between India and China is experiencing a mini real estate boom as wealthy Nepalese real estate investors seek a safe have for their money, it is claimed.

Government figures show the number of new apartments built in Kathmandu rose more than three-fold last year to 3,385 from 1,088 in 2007, as high land prices and poorly enforced planning laws made building upwards more attractive.

According to the Nepal Land and Housing Association, land prices have risen by 300% since 2003. There has also been an increase in the number of estate agents in the capital city, Katmandu.

Among those who are rushing to become involved in the booming property business is former Miss Nepal Malvika Subba who also had a successful career in television before opting for the less glamorous job of selling housing.

She is now head of sales and marketing at property developer Shangri-La Housing which builds luxury apartment, a new concept in the landlocked country.

Although unrest may put off foreign investors it is having the opposite effect in Katmandu as those living in unstable areas move to the capital and buy property as well as wealthy investors who want to put their money in bricks and mortar.

'People see property as a good investment. Many people tell us that it is not safe outside the capital and they want to put their money in a safe place,' explained Subba.

'When I was offered a job marketing real estate, I said yes straight away, because it looked interesting and I could see that business was booming,' she added.

Land has become a valuable commodity, mainly due to the decade long civil war between the Maoists and the army as people flocked to the relative safety of the capital.

The influx pushed up land values in the city, explained Chiranjibi Subedi, a planning official in Kathmandu.

'The number of proposals for new high-rise buildings and apartment complexes just keeps on growing,' he added.

There are currently more than 250 high-rise blocks being built in the capital, according to the planning ministry. But a spokesman also pointed out that many apartments in Kathmandu are empty as owners cannot find tenants.

Widescale investment in bargain Japanese real estate not expected until next year

Giant investment funds are poised to start buying Japanese property in the first half of next year when prices are expected to be at rock bottom, it is claimed.

Global investors including Carlyle Group, Blackstone Group and Lone Star Funds are still waiting for prices to drop a bit further, according to Ben Duncan, managing director of CB Richard Ellis Japan.

'The market is steering toward big, opportunistic funds. They're waiting for prices to fall further. At the moment they are not seeing as much distress as they hope for. But as the market starts to bottom out they'll probably start to buy,' he explained.

Commercial land prices in Japan fell 4.7% to a three-year low in 2008, with the decline increasing to 5.4% in the three largest metropolitan areas of Tokyo, Osaka and Nagoya, official government figures show. Office vacancies in Tokyo's main business districts increased for the 17 month in a row in June to 7.25%.

Blackstone has already said publicly that is plans to invest in Japanese property companies that need financing.

One factor that is hampering a move forward is that Japan's banks have been lenient in allowing companies to refinance borrowing rather than forcing them to liquidate assets, Duncan said.

'That's held back recovery in that the market hasn't corrected. If there had been more pressure we'd see more transactions and investment from all sectors,' he added.

Firms like Barclays Capital are indicating a turnaround is not far off. 'Pessimism has been retreating recently with the re-emergence of office contract and condominium sales transactions,' it said in a statement.

Other factors are being taken into account. Tokyo, for example, recently overtook Shanghai as Asia's most attractive city for real estate investment, according to the Urban Land Institute and PricewaterhouseCoopers LLP.

'What we've seen in the last three quarters is a lot of upgrading. Companies in good shape are taking advantage of the market to move into more attractive quarters at no increase in cost,' Duncan said.

Slowing in the number of construction firms facing critical financial distress

The number of property construction firms in distress has almost doubled in the last year but fewer have been facing financial problems in the last three months, suggesting an improved outlook.

The latest data from insolvency specialist Begbies Traynor shows that overall the number in significant distress, defined as those with a court action or average, poor, very poor, insolvent or out-of-date accounts, dropped 16% from 22,966 to 19,325, which was the biggest decline across all sectors.

In the second quarter of 2008 some 13,079 construction firms were flagged as having significant problems and this increased by 48% to 19,325 in the second quarter of 2009.

Those suffering from critical problems amounted to 639 in the second quarter of 2008 and this soared by 94% in the second quarter of 2009.

But the second quarter of 2009 has also seen a 6% drop in the number of construction firms with critical problems when compared to the first quarter of 2009.

'Although the construction sector has seen the biggest swing from 94% year on year to -6% quarter on quarter in the number of companies facing critical problems, the sector is not out of the woods,' explained Nick Hood, partner at Begbies Traynor.

'Whilst construction projects commissioned three years ago may still be ongoing, the demand for new buildings cannot continue whilst unemployment continues to rise and credit remains difficult to come by,' he said.

'Within the construction sector the lag on any economic recovery is likely to be more pronounced, given how far it sits down the food chain,' he added

The biggest year-on-year jump in the number of firms in critical distress, that is companies with court judgments totalling £5,000 or more and/or winding-up petition related actions, was seen in the wholesale sector, with a 185% rise.

Rich Russians turn to US for property bargains

Rich Russians are returning to the US property market, lured by distressed sales and the ruble's rise against the dollar, it is claimed.

With oil prices more settled they are looking at worldwide investments in real estate with Miami and New York proving popular hunting grounds for their big purses, according to lawyer Edward Mermelstein whose firm has an office in Moscow.

'The way many look at the US right now is that it's a bargain. All of a sudden in the last three months activity has picked up,' explained Mermelstein, who has arranged about 300 real estate deals for buyers from the former Soviet Union since 2007.

He has closed two purchases for $1 million and $3.8 million in the last month in New York and bid for 20 more residential and commercial properties in New York and Miami for Russian and central Asia clients in the past three months, compared with no deals or offers in January.

Sellers are cutting property prices by up to 40%, Manhattan apartment prices have dropped for the first time since 2002, and the has ruble rallied about 13% against the dollar from this year's low in February to provide a combination of factors that make the US appealing.

More than half of the 15 or so Russians he's helping find US property are new clients, he said. 'In the next six months to a year we'll definitely see some high-profile transactions in terms of number and in terms of trophy assets,' Mermelstein said.

The increase in Russian interest in the US property market mirrors what's already happening in other countries, especially London where luxury property prices increased in June for the first time in more than a year as Russia and Italian buyers took advantage of the pound's weakness.

Many Russians considering buying are influenced by celebrities and financiers including Chelsea football club billionaire Roman Abramovich and telecommunications billionaire Mikhail Friedman, Mermelstein explained. 'Russians are very much of a pack-mentality,' he added.

But not everybody is ready to jump in. Metals and banking magnate Mikhail Prokhorov, named by Forbes as Russia's richest man with a fortune of $9.5 billion, isn't interested in the US. 'Why do I need a house an eight-hour difference away? I spend 90% of my time in Moscow and it makes no sense to have a private home so far away,' he declared.

Govt to build Rs 1.1bn Papin Dam

RAWALPINDI: The federal government has planned to build a small dam at the cost of Rs 1.167 billion on Wadala Kas, a tributary of Soan River in Papin Village, District Rawalpindi.

Sources told Daily Times on Wednesday that the Water and Power Development Authority (WAPDA) and the provincial government would execute the project and the federal government would fund the project.

Water supply: They said main objective of the project is to provide 90 cusecs of sustainable irrigation water supply through construction of “Concrete Gravity” dam having gross storage capacity of 64,200 acre feet (AF) of water to irrigate 18,000 acres of agricultural land by gravity and about 1,500 acres of land with lift irrigation. In addition it would also provide two cusecs of water for domestic use for the adjoining villages, they said.

“The work on the project will start soon which will be completed by 2012,” said the sources. They said with the construction of dam would resolve the issues of water scarcity, additional reservoirs, protection of the infrastructure from onslaught of floods and create employment opportunities in the area.

They said the construction of small dam for irrigation was a dire need of this area as the drought cycle was frequent and the only solution was to build dams to conserve the rain runoff for agriculture.

They said the land of Potohar plateau was broken and uneven and the average runoff was about 1.88 MAF where as only 0.22 MAF (12 percent) was tapped by construction of small dams. They said in Rawalpindi district two third of the total annual rain precipitated during the monsoon season while the remaining nine months were nearly dry.

They said the delayed monsoon and erratic winter rainfall, which was a common feature, made the crops very uncertain. On the other hand, they said, the topography of the hilly areas with steep ground slopes helped the rainwater to form numerous streams running at high velocities, which was eroding the fertile agricultural land.

Specifications: The proposed dam will be constructed on the River Soan near the Village Papin in Rawalpindi District. The project is expected to provide about 2 cusecs per day for drinking purposes. The maximum height of the dam will be 105 feet with 460 feet length. The ogee type spillway of 52,000 feet discharge capacity will be constructed. The total length of irrigation system network (Main canal and water courses) will be 52 km.

Spending: The sources said the government would spend Rs 384.828 million for main dam and spillway; Rs 7.273 million for outlet structure, Rs 241.543 million for irrigation channel, Rs 9.56 million for lining of water courses, Rs 9.56 million for inspection hut, Rs 11.601 million for approach road, Rs 0.05 million for plantation, Rs 2.81 million for crop compensation, Rs 390.282 million for the land acquisition, Rs 6.73 million for geological investigation, Rs 30 million for shifting of 132 KV power line, Rs 13.732 million for institutional support and Rs 20.598 million for the physical contingencies.

PEC drops plan to set up IMAX Theatre in Lahore

LAHORE - Punjab Entertainment Company has changed its plans to set up IMAX Theater in Lahore after facing stiff opposition. It is now going to launch the said project at Faisalabad, authorities concerned told The Nation on Monday.

The sources said that delays in the project had badly damaged the technical equipment worth $2 million which was purchased in 2006. Now the sources said the company had changed plans and was planning to set up IMAX Theater at Faisalabad and was searching an appropriate place. The initial cost of the project was Rs 1.34 billion of which the government had already granted Rs 800 million.

As per details, through this mega project the government wanted to introduce country first IMAX Theater as Part of Education and Entertainment Centre because it has attracted diverse audiences around the world.

IMAX Experience IMAX Corporation and the Government of Punjab Province, announced an agreement to install the first ever IMAX theater in Pakistan two years back. The theater which was planned to be located in Lahore, was envisaged as a multi-function shopping and entertainment park which was expected to open by September 2005.

The project consists of four sections including films and theatre, shopping alleys, restaurants, and amusement. Out of the five companies in the world, IMAX, the runner of Discovery and National Geography TV channels, was picked up for catering to the screening of 3-D, 70mm movies, which Indian film industry so far has produced only two to show against the tickets valuing Rs 3,000. It is pertinent to mention that only the IMAX machinery has to cost the government Rs 230 million to be paid in forex. He said the primary object of the IMAX project is to educate the people on modern lines. This seriously astonished the court.

A PEC official said that the project was the dream of CM who wanted to use this medium to educate the children who had the chance to pick and drop facility to be given by the government.

Now two years have passed the issue regarding place of IMAX is still ongoing. 40-kanal Doongi Ground, Gulberg had been earmarked to be used in the project.

The petitioners counsel challenging the IMAX Theater, however, took the plea that the public park was there before the creation of Pakistan and could not be used for commercial purposes. He maintained that recreational facilities such as parks and grounds were getting redundant rapidly in the city due to commercialization of lands and should be protected. It is pertinent to mention that Supreme Court of Pakistan had issued stay order about one year back.

Company took the plea that the project was good for the locals who could get their residences commercialized sell it at ten times higher prices. The petitioner moved another petition in the SC, which stopped the work again.

The company official added that the success that many of our customers are experiencing with IMAX DMR films is leading to increase interest from exhibitors around the world. We have not seen this level of inquiries in more than five years. However, he said people loved IMAX and we are really bullish about the region.

The sales activity is very strong, he said. “We have lots of discussions going on right now with a variety of operators. When the popularity of an IMAX theater grows in a market, there is often demand for additional IMAX theaters in surrounding markets, he said.

Regarding Lahore project official assured that IMAX would be set up at major cities of Pakistan and this dream would come true very soon.

Property analysts tip relatively unknown Chinese cities for real estate boom

A number of relatively unknown Chinese cities are set for a property boom as the country's real estate recovery gets underway, according to analysts.

They name cities in the western, central and northern regions such as Tianjin and Chongqing as being in a position to grow faster than cities like Shanghai and Beijing.

Tianjin, a port in north eastern China about 120 kilometres from Beijing is poised to be the centre for the revitalisation of the region's industrial base with growth of 16.5% predicted.

Analysts at property consultants Jones Lang LaSalle have tipped it to become the fifth most important municipality after Beijing, Shanghai, Guangzhou and Shenzhen.

A number of major Western firms already have a major presence in the city including Airbus and Boeing.

Dalian, another northern port city, is likely to see strong demand for residential property due to increasing employment. It has some major call centres serving Japan and Korea and a large amount of IT firms as well as offices for international bank Morgan Stanley.

Chengdu, the capital of Sichuan province, is perhaps better known on the international stage for its pandas than its property, is also tipped for growth. It has strong potential for international tourism as it is well connected to the rest of western China through network of roads and rail but has also been named by the Chinese government as a key centre for the development of China's western region. International firms with operations in the city include IBM and Nokia.

Chongqing, China's most populous city is where Hong Kong developers have bases. It also has lower property prices than most big Chinese cities so offers real estate investors potentially higher returns.

Shanghai may be China's wealthiest city and main financial hub but nearby Nanjing has seen property prices soar in recent years and according to CB Richard Ellis it offers opportunities for office and retail development because of a limited supply of Grade A office and prime retail space.

CBRE has described Wuhan, one of China's main steel producing areas and the capital of Hubei province, the scientific and education centre of central China, as 'the most important transportation hub in inland China' because of its strategic location and hence a good spot for investments in factories and warehouses.

Hangzhou, a popular tourist destination about 200 kilometres from Shanghai, is already one of China's richest cities and is tipped because it is an important manufacturing base and logistics hub for China's eastern seaboard.

Electronics and its position across a narrow strait of water from Taiwan, makes Xiamen, the port city in southeastern China one of China's important manufacturing bases in the southern region. Major foreign companies with large operations in the city include Dell, Panasonic and ABB.

Property market in Oz cities showing signs of recovery

Confidence is returning to the property markets in Sydney and Melbourne according to a new survey that compares the real estate market with a clock face.

The research from Colliers International puts the top of the market at 12 o'clock and the bottom at 6pm. It puts four markets at or near rock bottom and reveals that 64% believe the worst had passed and the market is poised for recovery or already in a recovery phase.

Brisbane and Canberra are sitting right on 6pm, according to those surveyed. Adelaide and Perth are still going downwards at 5pm, but Sydney and Melbourne are past the worst at 7pm.

Overall, 30% thought the market was at 7pm and 22% opted for 8pm. A further 10% believed it was at 9pm, the trigger point for an upswing.

The report sees good signs for all real estate markets and predicts that Sydney may be the first to flex it residential muscle. 'With the largest population and the greatest imbalance of supply and demand, the only thing holding it back will be infrastructure and available development sites,' said Grant Dearlove, Colliers International's residential managing director.

Sydney and Melbourne are still experiencing population growth and have almost zero rental vacancies, against a backdrop of strong demand, he explained.

'Affordability issues have dogged Sydney's market for the past five years but there is growing confidence house prices have turned,' Dearlove added.

He described Melbourne as Australia's most affordable city for new homes. 'It has picked the right product for the market and has created a precedent for other cities to follow,' he said.

Although Brisbane is at the bottom of the property clock, Colliers International believes still booming population growth will drive a market in which developers try to meet residential product demand.

On that basis, the agency considers it a good time for investors in the Brisbane market.

It also believes the residential sector will lead a wider property recovery, as it did during the 1990s recession.

The report concludes that Australia seems to be escaping the worst of the global financial crisis. 'In a time of rising unemployment, it's a big call to say the housing market is past six o'clock, but talking to real buyers sums up a mood hope, Dearlove added.

Obama Mulls Rental Option for Homeowners

NEW YORK--U.S. officials are weighing a plan to let borrowers who have fallen behind on mortgage payments avoid eviction by renting their home instead, sources familiar with the administration's thinking said Tuesday.

Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.

Officials have been frustrated as red tape and rising interest rates have slowed a housing rescue plan announced in February that was meant to refinance five million borrowers and lower monthly payments for four million more.

"It's not doing as much as we would like. It's not doing enough. We've been asking the banks to do more," Treasury Assistant Secretary Michael Barr said in an interview with Reuters Television.

English councils offered help to manage property portfolios worth £250 billion

Local authorities in England who are responsible for property portfolios worth around £250 billion are to be given advice on how to invest wisely.

A new set of best practice guides for local authorities on how to manage their assets effectively have been published by Royal Institute of Chartered Surveyors.

The guides offer practical solutions at a time when local authorities are coming under criticism over the management of their property portfolios. Many lost considerable sums of money in the credit crisis.

RICS said that in the current economic climate councils need to ensure that they make the best use of their real estate assets.

'Assets are a corporate resource and should be managed accordingly. Senior decision makers need to engage with the asset management agenda and make sure their authority's assets fully support their strategic plans,' said Keith Jones, chairman of the RICS Public Sector Executive Group.

'These leaflets aim to assist with the policy context within which decisions are made and give suggested best practice, to ensure assets continue to play a crucial part in creating sustainable communities,' he added.

Last month the Audit Commission, the local government spending watchdog revealed that councils in England are sitting on property worth at least £250 billion but only one in 14 is 'exemplary' at managing their assets. In a report it warned that some councils were getting worse at looking after their property portfolios,

Audit Commission deputy chairman Bharat Shah said councils should ask whether they needed their assets and whether they were making the best possible use of them. 'The recession is a good time for councils to plan how to use the property they own more efficiently and possibly even to acquire assets for the future,' he added.

The RICS guides provide an overview of the key policy areas that need to be considered by local authorities, including the transfer of assets, value for money, measuring asset performance and improving the customer's experience.

The guidelines seek to show how assets can better support public policy and local authority initiatives, suggest how the management of assets can be integrated into corporate management and encourage members and officers to become more involved in strategic asset management.

Property prices in China rising

Residential property prices in urban areas in China rose for the first time in six months in June, according to the latest official figures to be released.

The prices in 70 major cities increased by 0.2% year on year, the data from the National Development and Reform Commission and the National Bureau of Statistics, showed.

This follows a 0.6% fall in prices in May but echoes unofficial figures which have indicated for a number of months that prices are on the rise amid signs that the real estate market in China is well on the way to recovery.

Analysts also point out that it is a sign that the government's stimulus plans are working. In some areas there is even concern that prices could be rising too quickly.

Since October the Chinese government has taken a series of measures, including tax breaks and preferential rates for first time buyers, to shore up the real estate industry which accounts for more than 20% of urban fixed investments.

The property market started to stabilise in March, when prices rose 0.1% month-on-month. Along with favourable government policies, inflation expectations due to a surge in new bank loans this year is also driving the sector's rebound, according to analysts.

New loans for the first half of the year amounted to $1.1 trillion, according to central bank figures. 'China's residential market has touched its rock bottom and is recovering, however, at a pace faster than reasonably expected,' said Alan Chiang, head of residential of DTZ China in Shanghai.

He predicted that some measures to prevent a boom may have to be taken. 'I would expect that bank lending will be further tightened and mortgage interest rates rise,' Chiang said.

Indeed banks in Hangzhou are already taking measures to prevent an overheating in lending for second home buyers. They have introduced a 40% down payment rule after property prices started surging ahead of other parts of Chine. Some brokers reported increases of 20% in the last three months.

But some think it will have little impact. 'It might affect volume growth but at a moderate rate. Second or multiple homebuyers will continue to view property purchase as a way to hedge against inflation risks amid low interest rates,' said Carol Wu, analyst with DBS Vickers.

Work on another interchange, flyovers on Expressway soon

Capital Development Authority (CDA) will initiate construction work of another interchange and flyovers on Islamabad Expressway shortly after the designing of the project completes.

“The projects are in their designing phase and work in this regard will be launched soon after all formalities are completed,” said a senior CDA official Thursday.

“We have dropped the plan to construct underpasses and now we will erect flyovers on all intersections. Some modest interchanges will be constructed on the Highway in different phases,” said the CDA official.

He said the construction of interchange at Karal Chowk is their priority. The project would be executed in different phases. Besides this, a flyover would also be built on Kuri Chowk and an intersection has been planned for Lehtrar Chowk. The project is in its planning phase that would be followed by the construction work.

The official said about a dozen interchanges and flyovers are planned to be constructed on the Expressway, as work on two additional rigid lanes has already been completed, making it the widest road of the country. The project is meant to provide separate ways for heavy traffic, which sometimes also causes traffic accidents and disrupts the traffic flow.

“The multi-billion project includes seven flyovers and four interchanges on the Expressway from Faizabad Interchange to Rawat and are in addition to the under-construction Zero Point Interchange,” he said. He said the Islamabad Highway would be made signal-free and the project would take about two years to complete. After completion of the design, the Authority would start the hiring of contractors for execution of the project.

The official said flyovers are being planned at Sector I-8 traffic signal, Kuri Road, near PWD Housing Scheme, Soan Garden Scheme, Japan Road and Defence Housing Authority (near Commoner’s Town), while interchanges would be built on Rawat, Karal Chowk, Soan and Khanna bridges. He said the Authority would install fences on both sides of the road on the pattern of Motorway, and no turning would be allowed from Faizabad to Airport Chowk.

About 200,000 vehicles run the length of this portion of the road each day, making it the busiest in the federal capital. “The traffic load has increased tremendously, and it has now become imperative for the road to be widened and made signal-free,” he added.

Zardari urges investment in housing sector

ISLAMABAD: Local and foreign investors can invest in Pakistan’s housing sector, particularly in the rehabilitation of internally displaced persons, President Asif Zardari said on Wednesday.

He was talking to delegates of the Gulf General Investment Company (GGICO) – led by its Chairman Abdullah Juma Al-Sari at the Presidency.

Zardari said the government had launched a housing scheme for the poor, the general public and government employees.

He said the country’s investment policy aimed at encouraging foreign investment through fair treatment of both local and foreign investors.

Al-Sari said the company was interested in investing in the housing sector of Pakistan, particularly the pre-fabricated housing units for the displaced people and affordable housing in the major cities.

Source: [Daily Times]

CDA bans advertisement on capital roads

Islamabad: Chairman Capital Development Authority (CDA) Imtiaz Inayat Elahi Tuesday said that haphazard and ill-planned advertisements are sprouting in the federal capital that is against the city’s character, causing visual pollution.

Chairing a meeting at the CDA headquarters, the CDA chief directed the Directorate of Municipal Administration to revisit the policy of allowing advertisements in green areas and centre medians of roads and main highways.

He said in future, advertisements only would be allowed in markets and commercial areas.

He directed the Municipal Administration director to initiate a special drive to remove the advertisements, causing visual pollution, to enrich the beautification of the city and make the capital clean, pollution free and environment friendly.

Imtiaz Inayat Elahi said the beautification and natural character of the city could

not be compromised for the sake of revenue, generated from such advertisements, which give a shabby look to the city.

He directed the Municipal Administration director to immediately stop the permission for installation of streamers in the municipal limits of Islamabad and added that banners would be allowed only at specified sites.

Forced property sales at all time high in New Zealand

Forced property sales in New Zealand are more than four times higher than a year ago as the impact of the global downturn hits vulnerable real estate owners harder than expected.

Although New Zealand has not been immune from the global property downturn it was expected not to end up with a major repossession problem.

But it is unemployment that it taking a toll. The Auckland market has been particularly badly affected where the sheer volume of residential housing in the city, high median house prices and people being laid off are being cited as factors in the forced sales increase.

Figures issued by property and land information company Terralink show a 25% increase nationwide in the past month, with 251 mortgagee sales recorded - the highest monthly total ever. Five years ago there were around 45 mortgage sales a month.

Analysts at Terralink do not expect the trend to slow down as forced sales tend to lag behind the wider economy. Figures have been rising steadily since March 2007 when the impact of the global downturn first started to hit the New Zealand property market but they have accelerated in recent months. Terralink's managing director Mike Donald said that more individual property owners were losing their homes and he believes it is a direct result of increasing unemployment and small businesses making less money, leaving their owners struggling to pay bills.

Banks had tightened their lending conditions because of the recession, which also made it harder to meet mortgage payments, he added.

Donald said Auckland had been hit the hardest because property prices were higher and because many of the mortgagee sales included complexes where apartments and units were being built but not completed. Almost half the forced sales are in Auckland.

Auckland also has an oversupply of apartment accommodation and several large-scale complexes remain unfinished as property developers going into liquidation or receivership.

LDA bans dealings in Johar Town's 1061 plots with missing files

THE Lahore Development Authority (LDA) has found that 1,061 files of plots located in Johar Town phase I and II are missing from its record and the authority had banned any transaction related to these plots.

The decision was made by LDA Director General Omar Rasool following a report of a special committee that had been constituted to scrutinise property files of Johar Town. The committee was formed some days ago after the DG received a large number of complaints of frauds in Johar Town files.

The committee had reported that the credentials of 1,061 files could not be verified because they were not present in LDA record. In the light of the findings of the committee, the DG LDA banned sale and purchase of these plots. Meanwhile, the LDA had also announced that it will not bear responsibility for any deal in these plots. The LDA had also stopped exemption, allocation, possession, issuance of NOC, transfer of plot, approval of building plan and other matters relating to such files.

On Monday, the LDA DG spent the whole day at LDA office Johar Town and personally spoke with hundreds of applicants who had come to resolve their problems. He issued orders to officials concerned to redress genuine grievances of applicants. On a complaint, the DG LDA ordered an inquiry against an official of LDA, Nawaz Butt, on charges of receiving Rs 3,000 from a person for drafting and getting approved building plan of his house.

Under supervision of of the DG, the ‘One Window Cell’ of the LDA had disposed of 460 applications out of 494 that had been received during the week concluding on July 4. The remaining 34 applications will also be disposed off within a day or two. The concerned staff has set the target of disposing of all applications that would be received until July 11.

Sharea Faisal, green but dangerous

Karachi: Sharea Faisal, the city’s main artery stretching from Karachi Airport to defunct Hotel Metropole, has been turned green due to massive plantation of wonder tree Conocarpus by the City District Government Karachi (CDGK). However, the road is equally dangerous for pedestrians who simply can’t cross the road due to fast traffic flow.

Conocorpus is ever-green, beautiful and has a thick foliage. It is hardy and needs little water, which it draws from the soil. Hence its plantation on Sharea Faisal is understandable. One also finds other evergreen trees on the road, such as Lignum and Ashoka. The road is punctuated by Neem and date palm trees. Then we find creepers at Naval Officers Residential Colony (NORE) that makes one nostalgic because one doesn’t find them in the city anymore.

“I think it’s a wise decision on the part of city government to plant Conocarpus on Sharae Faisal as elsewhere in the city,” said ex-secretary of Sindh Wildlife and Forest Department, Shamsul Haq Memon. “They have planted a species that is slow growing and won’t affect electric wires,” he said. He also rejected the notion that the pollen of Conocarpus would pave the way for allergy. “No scientific study has been conducted so far that proves that pollen of Conocarpus is allergic,” he said.

What is worrisome about Sharea Faisal, however, is that it lacks appropriate pedestrian crossings. “It’s really suicidal to cross the road. Karachi is being transformed into a ‘fast car city’ although it should be made into a pedestrian- and commuter-friendly city,” noted architect and town planner Arif Hasan.

“Research about the requirements of pedestrians and commuters should become a part of road and transport projects,” he said.

The research should include details about footpaths, zebra crossings, right height of footpaths, comfortable bus stops at accessible places and an understanding that pedestrian bridges are not an alternative to zebra crossings. Then the decision should be made about the speed limit of cars and the possibility of pedestrians moving across the city from one place to another without fear of being overrun, Hasan said.

“The vision to convert Karachi into fast car city has also destroyed localised commerce,” Hasan said. He predicted that after 10 to 15 years, traffic would pile up so much that the government would have no choice but to install traffic signals again.

One wonders why city administration is adamant to make a road dangerous that has such a historical significance.

CDGK to construct six more flyovers on Sharea Faisal

Karachi: The City District Government Karachi (CDGK) will construct more than six flyovers and u-turns at Sharea Faisal to make the city’s busiest artery a signal-free road from the Quaid-e-Azam International Airport to the Jinnah Bridge at PIDC.

The proposed fourth signal-free corridor (SFC) of the city will cost Rs2.9billion. The amount has been allocated in the next budget.

Meanwhile, City Nazim Mustafa Kamal has directed the Works & Services Executive District Officer (EDO) to start work on the preliminary formalities without delay so that this project can begin as soon as possible.

According to the plan, a right-turn flyover will be constructed near the FTC Flyover, for traffic from the Airport to Saddar, while a two-lane flyover will be constructed from Lucky Star to Jinnah Hospital to reduce traffic volume at the signal.

Two twin-lane flyovers would also be constructed at the Metropole Hotel, Hotel Mehran and PIDC Roundabout to facilitate traffic moving from Metropole Hotel towards Saddar Cantt, from Clifton to the Saddar area, and from Saddar to PIDC.

Rawal Town Council approves Rs 710m budget for 2009-10

RAWALPINDI: Rawal Town Council (RTC) on Monday approved Rs 710.761 million Rawal Town budget for fiscal year 2009-10 amid uproar and pandemonium.

Rawal Town Naib Nazim Chaudhry Farooq Azam presided over the budget session in Jinnah Hall, Town Municipal Administration Complex. Rawal Town Nazim Sheikh Rashid Shafique presented the budget, which was approved by the RTC.

Shafique informed the house that development expenditure had been estimated at Rs 456.195 million and non-development expenditure at Rs 254.566 million.

“For the first time, no development scheme or project is included in the budget,” he informed the house.

Punjab govt turned Pindi into ruins: The nazim said the Punjab government had banned new development schemes in the city because of which it now looked like ruins. He said in the two years after the assassination of Benazir Bhutto, Rawal Town Municipal Administration (RTMA) had recently got approval from court to start the development schemes, envisaged in budget 2008-09.

He said the RTMA had allocated Rs 170 million for development schemes, which must start even without approval from the Punjab government since the city had generated resources for them on its own. He said development schemes to the tune of Rs 2 million each in all 46 union councils of the city would be supervised by naib nazims.

Parks, streetlights and CCB schemes: He said the RTMA had allocated Rs 20 million for improvement of parks, Rs 1 million for streetlights and Rs 130.135 million for CCB schemes, adding that this amount had remained unspent for the last three years.

Slaughterhouse: He said slaughterhouse project had not yet been completed despite the fact that RTMA had paid Rs 50 million to the City District Government for its construction in addition to Rs 2.4 million paid to Pakistan Railways as two-year rent of the land reserved for the slaughter house.

Mother and Child Hospital: He requested the federal government to complete Mother and Child Hospital project, which was started three years ago. He said the RTMA had no objection if the Rose Cinema was given into enhancement of DHQ Hospital.

Transfer of resources: He said after transfer of major revenue resources to the City District Government and an increase in salaries and pensions of government employees, it had become very difficult for the town administration to present a surplus budget next year.

He said Rawalpindi Environmental Improvement Project (REIP) had dug all main roads of the city without getting NoC from the RTMA.

Four-year performance: Shafique said the RTMA had completed development projects to the tune of Rs 810.92 million over last four years. He said RTMA members had launched 308 development projects, installed 70 water filtration plants, 28 tube wells and laid new roads at a cost of Rs 436 million.

He said Government Girls College Dhoke Hassu; Sheikh Fazal Elahi Girls High School Hazara Colony; Government Girls High School, Ziaul Haq Colony and Government Girls High School, Aryia Mohallah had also been built during the same period.

He said all house members would oppose the provincial government for giving procession of old TMA offices at Fawara Chowk and General Bus Stand, Pirwadhai, to City District Government and that of parks to Rawalpindi Development Authority (RDA).RAWALPINDI: Rawal Town Council (RTC) on Monday approved Rs 710.761 million Rawal Town budget for fiscal year 2009-10 amid uproar and pandemonium.

Rawal Town Naib Nazim Chaudhry Farooq Azam presided over the budget session in Jinnah Hall, Town Municipal Administration Complex. Rawal Town Nazim Sheikh Rashid Shafique presented the budget, which was approved by the RTC.

Shafique informed the house that development expenditure had been estimated at Rs 456.195 million and non-development expenditure at Rs 254.566 million.

“For the first time, no development scheme or project is included in the budget,” he informed the house.

Punjab govt turned Pindi into ruins: The nazim said the Punjab government had banned new development schemes in the city because of which it now looked like ruins. He said in the two years after the assassination of Benazir Bhutto, Rawal Town Municipal Administration (RTMA) had recently got approval from court to start the development schemes, envisaged in budget 2008-09.

He said the RTMA had allocated Rs 170 million for development schemes, which must start even without approval from the Punjab government since the city had generated resources for them on its own. He said development schemes to the tune of Rs 2 million each in all 46 union councils of the city would be supervised by naib nazims.

Parks, streetlights and CCB schemes: He said the RTMA had allocated Rs 20 million for improvement of parks, Rs 1 million for streetlights and Rs 130.135 million for CCB schemes, adding that this amount had remained unspent for the last three years.

Slaughterhouse: He said slaughterhouse project had not yet been completed despite the fact that RTMA had paid Rs 50 million to the City District Government for its construction in addition to Rs 2.4 million paid to Pakistan Railways as two-year rent of the land reserved for the slaughter house.

Mother and Child Hospital: He requested the federal government to complete Mother and Child Hospital project, which was started three years ago. He said the RTMA had no objection if the Rose Cinema was given into enhancement of DHQ Hospital.

Transfer of resources: He said after transfer of major revenue resources to the City District Government and an increase in salaries and pensions of government employees, it had become very difficult for the town administration to present a surplus budget next year.

He said Rawalpindi Environmental Improvement Project (REIP) had dug all main roads of the city without getting NoC from the RTMA.

Four-year performance: Shafique said the RTMA had completed development projects to the tune of Rs 810.92 million over last four years. He said RTMA members had launched 308 development projects, installed 70 water filtration plants, 28 tube wells and laid new roads at a cost of Rs 436 million.

He said Government Girls College Dhoke Hassu; Sheikh Fazal Elahi Girls High School Hazara Colony; Government Girls High School, Ziaul Haq Colony and Government Girls High School, Aryia Mohallah had also been built during the same period.

He said all house members would oppose the provincial government for giving procession of old TMA offices at Fawara Chowk and General Bus Stand, Pirwadhai, to City District Government and that of parks to Rawalpindi Development Authority (RDA).