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News Release

Singapore

Property Diversification a Trend in Auctions Market

Investors eyeing higher yield in commercial and industrial markets adopt ‘wait and see’ approach


SINGAPORE, 10 October 2011 - The debt crises of Europe and U.S have dampened investor sentiments in the auctions market. 3Q11 figures show that auction transactions are at their lowest (7) since 1Q09, which recorded 11 transactions. While the seasonal slowdown due to the Hungry Ghost Festival could have had some impact, it is likely that investors are adopting a wait and see approach amidst the uncertain global economic climate.

The residential sector is typically the most active in a booming market as seen in 2009.This is expected given the lower risk in Singapore’s residential market which is backed by strong fundamentals of land scarcity and a growing urban population. However, it is evident that investors have been turning to other sectors with the 4 rounds of cooling measures further restricting purchases in the residential market.  Led by the commercial sector as the choice investment alternative, the proportion of residential transactions has generally been on a decline, with the worsening global economy providing added incentive for investors to hedge risk through diversification of property types.

Ms Mok Sze Sze, Head of Auctions at Jones Lang LaSalle says, “Despite a shift back to the residential in the current quarter, it is expected that the general trend of property diversification will hold, with investors eyeing higher yields offered in the commercial and industrial markets. Going forward, we expect to see more willing sellers putting their properties in the market and although the market is generally cautious, there will still be buyers taking position as interest levels continue to be favourably low.”
 
 
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About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than USD 2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with USD 45.3 billion of assets under management.

Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 20,800 employees operating in 77 offices in 13 countries across the region. The firm was named the Best Property Consultancy in Asia Pacific at 'The Asia Pacific Property Awards 2011 in association with Bloomberg Television'. For further information, please visit our website, www.ap.joneslanglasalle.com

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