1. 2nd QUARTER 2011 PROPERTY BAROMETERLONDON JERSEY CITY KUALA LUMPUR, MALAYSIALondon has seen a strong start to the year and Jersey City is a dynamic commercial centre located just Following 7.2% economic growth in 2010,we expect this to continue through 2011. seven minutes from Wall Street. Capital values are the residential market saw optimismCentral London will continue to lead the pack in 50% below peak prices achieved in January re ected in higher prices in Q1 this year. Theterms of growth, due to its close relationship 2007, o ering investors the opportunity to enter the government is continuing to implementwith the nancial services sector and high global market at a low price point. The advantage Jersey the Economic Stimulus Package through LONDONdemand. As overseas investors now account City has over Manhattan is strong yields as its out 2011; which will only encourage thefor 48% of all prime central London average property price is just one fth of economy to grow further; this will have aproperty purchases, London remains the Manhattan’s and its property taxes are positive impact on the property market. The JERSEY CITYprimary overseas property investment signi cantly lower, making the area an interesting proposed billion ringgit Mass Rapid Transitmarket. While the volume of buyers remains investment. Jersey City also bene ts from having (MRT) project will be a catalyst for growth inconsistent in the market, a lack of supply and among the best transport infrastructure in the United many areas running alongside the proposed MALAYSIAmortgage nancing could mean a lower States. The PATH train runs 24/7, making the commute lines as well many suburbs of Kuala Lumpur.number of transactions over the forthcoming from Jersey City to Wall Street only seven minutes. Kuala Lumpur continues to be one of IPmonths. Rents are at an all-time high; the Therefore rental demand is strong in the area, TURKEY Global’s top picks as its property market iscombination of a severe lack of stock and very especially from people working in Manhattan and expected to remain strong throughouthigh demand fuelled 16% price growth last year looking to bene t from Jersey’s larger property sizes 2011. We estimate 7-10% growth of AUSTRALIAand is likely to persist this year. The UK base rate and lower monthly rents. The improving job market capital values in Kuala Lumpur on theis at a record low of 0.5%; however in the coming means demand will rise as tenants seek to upgrade back of strong economic growth andmonths this position may change. The prospect their homes. Capital values are likely to appreciate over ongoing high transaction volume from 2010. DUBAIof higher borrowing costs could a ect demand the course of the year as supply is outweighed bybut this should be limited as any increase is likely current demand. REITs have also shown theirto be minimal. con dence in the Jersey City market; CB Richard Ellis Realty Trust, a non traded REIT, bought Jersey City’s Colgate Center in a deal valuing the twin o ce buildings at $310 million. LONDON JERSEY CITY, NEW YORK KUALA LUMPURTURKEY, ISTANBUL AUSTRALIA DUBAITurkey has the fastest-growing economy in Following extensive property damage from extreme Recent data suggests Dubai is not yet close to the bottomEurope, a trend that is likely to continue in the weather late last year, Australia’s residential market of its market depression after property prices fell 65% innear future. Factors such as a small budget had a weak rst quarter prompting questions 2010. The market could fall up to 30% further over thede cit, a stable banking system and a capable whether this could be a signal of a weaker year next two years as new supply is expected to come ongovernment have all contributed to making ahead. Many parts of the country have been the market. There will be 42,000 new property unitsTurkey an attractive investment opportunity. struggling to recover since the ood disaster in completed come 2013, increasing supply by 12%,The volume of sales to foreigners rose by 2010; for example, sales in Queensland fell by 13.3% leading the market to inevitably devalue and result in40% in 2010, a gure that can be re ected in February this year. Sales for multi-home disequilibrium.in the recent growth in the construction dwelling developments fell by 7.6% last month,sector; construction grew by 18% in 2010 while detached houses saw a 1.5% decrease inand is forecasted to increase by 10% this values. Tighter lending conditions with interestyear. Given Istanbul’s renewed con dence, rates on hold with a bias to increase, and a lack ofhigh transaction volumes, and economic government action towards housing policy suggeststability, we believe it has a largely untapped Australia’s residential market will have a di cultmarket that holds great growth potential. The year.city won European City of Culture 2010,which will spur a huge amount of investmentinto the city in the coming months. TURKEY, ISTANBUL DUBAI AUSTRALIAPlease note information has been taken from third party sources. References are available on request.